Hong Kong Airways

Hong Kong Airways - HKA was an airline in Hong Kong during the late 1940s and 1950s.

Context of launch

In 1946 Jardine Air Maintenance Company (JAMCo) had been formed to serve the rapidly expanding portfolio of airlines serving Hong Kong and Jardine Airways was formed as the General Sales Agent in Hong Kong and China of BOAC and other carriers. HKA was formed in 1947, by BOAC and Jardine, Matheson & Co.(怡和). Jardines wanted to develop a Hong Kong carrier with the support of a British government backed enterprise. BOAC wanted to create a feeder carrier to transport passengers from their London to Hong Kong service to onward destinations in China and the Far East. Additionally the government in London wanted to develop a new market for British manufactured aircraft. Jardines were General Sales Agents of HKA and became owners before selling to government backed partner BOAC.

Jardine & Swire battle for the HK aviation franchise

The Swire perspective - pg 117 of "Beyond Lion Rock" Young, Gavin 1988:-

"On 13 May 1949 an agreement was signed by Cathay Pacific (Jock Swire) and BOAC (on behalf of Hong Kong Airways) along Grantham's (@) lines of allocation. Cathay secured the valuable routes to and from Bangkok, Singapore, Haiphong, Saigon, Sandakan, Jesselton (now Kota Kinabalu) and Labuan, and Rangoon (with an extension possible to Calcutta). That left HKA with Canton, Macao, Shanghai and Tientsin, not, after all, Japan. The 'Battle of Hong Kong Airways', as Jock called it, did not end here. It dragged on for another ten years. In November 1949 BOAC sold Hong Kong Airways back to Jardines, but it soon ran for cover to another 'big brother', in a charter association with the American company Northwest Airlines on the Taipei and Tokyo services. Absurdly, HKA was still an airline without planes of its own. Then in 1953, the British Government attempted to bring about a merger between Cathay Pacific, BOAC and Hong Kong Airways to form a single regional airline. This came to nothing for two reasons: first, disaster hit BOAC in the quick succession of two Comet jets and a Constellation, and, secondly, Hong Kong Airways was doomed to be a dead loss in anyone's hands. Later still, BOAC came back having decided to try once more to bring Hong Kong Airways to profitable life. Two new short-range Viscounts arrived in Hong Kong in an attempt to make something of the Tokyo route. But there was still no profit in that, and finally Lord Rennell of BOAC meekly approached Jock Swire to ask if he would be willing to swap Hong Kong Airways for a parcel of Cathay Pacific shares. Jock said he considered Hong Kong Airways worthless and a liability, but nevertheless, as of 1 July 1959, Cathay Pacific took over Hong Kong Airways though spurning the two Viscounts - and BOAC got 15 per cent of Cathay Pacific's shares and a seat on the Board."

The Jardine perspective - pg 236 of "The Thistle & the Jade" Keswick, Maggie Ed. 1982:-

"Characteristically, Jardines was a pioneer of air travel in the Far East. As early as the 1918 Armistice, CH Ross (then in charge in London) commissioned a feasibility study for a Jardine air service to run in conjunction with Vickers - for whom the firm were agents - from Hong Kong to Shanghai via the coastal ports. And later, when Imperial Airways - the precursor of British Airways - opened their first service to Shanghai with flying boats, they appointed Jardines general agents, although they did not use agents at any other major city on their routes. After World War II, in association with BOAC, Jardines also successfully launched Hong Kong Airways, which held the rights to fly from Hong Kong into China, to Taipei and Osaka, and - jointly with Cathay Pacific to the Philippines. With the great political change in China they lost the key route: Hugh Barton, later Taipan, flew from Shanghai on the last Hongkong Airways plane. And, after trying other ventures, including two Viscounts on the Philippine flights, Jardines eventually gave up Hong Kong Airways and sold off the rights to Cathay Pacific."

Legacy

JAMco was merged with Swire/Cathay Pacific maintenance interests, to from HAECO, on 1 November 1950. After the merger of JAMCo to form HAECO Jardine did received a parcel of HAECO shares but this gradually waned. HKA itself merged with Cathay Pacific on 1 July 1959. Jardine Airways remained the exclusive General Sales Agent in Hong Kong for British Airways until the year 2000. Another Jardine affiliate Eupo Air (欧亞) chartered seats for distribution primarily amongst the Chinese community on British Airways flights on the Hong Kong to London route from 1983 to 2002, a similar partnership to that of HKA and Northwest Airlines in the 1950s. Today (2006) Jardines aviation interests in Hong Kong are principally ground handling under the banner of Jardine Aviation Services, however, a small Eupo Air/Jardine Travel office does act as GSA for British Airways Holidays and is a large wholesaler of BA Special fares. The Swire Group is still (2007) the principal shareholder in Cathay Pacific. Dragonair is now owned by Cathay Pacific flying some of the routes originally pioneered by HKA. On this basis it can be concluded that the battle for Hong Kong aviation was roundly won by the Swire Group.

Fleet

Hong Kong Airways operated a fleet of British built aircraft including:

* 2 Vickers Viscount V760D
** VR-HFI leased from BOAC Associated Companies - sold to Malayan Airways in 1959
** VR-HFJ leased from BOAC Associated Companies - sold to Malayan Airways in 1959

* 2 De Havilland Comet
* 1 Lockheed Constellation

Destinations

* Hong Kong - Kai Tak Airport
* Shanghai - Longhua Airport (now a PLAAF airfield)
* Canton - Pai Yuen Airport - former Guangzhou Baiyun International Airport

ee also

* Dragonair

Notes

*Alexander Grantham, HK Governor