Author: Chen, Hongjie
Title: The evolution of passenger aviation policy of Hong Kong : why Cathay Pacific has never had a real competitor in Hong Kong in the past sixty years
Advisors: Xiao, Honggen (SHTM)
Degree: DHTM
Year: 2025
Subject: Aeronautics and state -- China -- Hong Kong
Aeronautics, Commercial -- Government policy -- China -- Hong Kong
Cathay Pacific Airways
Airlines -- China -- Hong Kong
Competition
International airports -- China -- Hong Kong
Hong Kong Polytechnic University -- Dissertations
Department: School of Hotel and Tourism Management
Pages: xiii, 206 pages : color illustrations
Language: English
Abstract: Unlike the liberal policies adopted in the United States and the European Union, the Hong Kong government from the colonial period until recently still maintains a passive strategy in its passenger aviation policy. It is interesting to note that Cathay Pacific has gained dominance in the Hong Kong aviation market since 1959, few Hong Kong-based airlines have ever competed with Cathay Pacific in Hong Kong, while Hong Kong International Airport (HKIA) has maintained its status as a leading aviation gateway linking China and the world.
Hong Kong's economy depends highly on the aviation industry, which provides an indispensable link between Hong Kong, mainland China and the rest of the world for the movement of people and goods. Hong Kong's aviation policy has, in simple terms, only one objective, which is to strengthen Hong Kong's status as an international aviation hub. The purpose of this study is to address the reasons behind Hong Kong's need to consolidate and strengthen its position as an international aviation center, how the Hong Kong government has endeavored to achieve this goal through adjustments to its passenger aviation policy since 1985 and the challenges it is currently encountering and the effectiveness of its strategies in dealing with them.
This study adopted a pragmatic paradigm and employed a mixed method strategy that combined qualitative and quantitative research methods. In the first part of this study, the comparative-historical analysis method is carried out for the analysis of historical records to reconstruct the evolution of the passenger aviation policy of Hong Kong from 1985 to the present, in order to systematically sort out the evolution of Hong Kong's aviation policy according to the chronology of historical events and to unearth the deep-seated motives behind the evolution of the policy. In the second part of this study, an agent-based model is used to simulate the scenarios of airport competition in the multi-airport region of the Greater Bay Area, complementing the qualitative study in the first part.
Compared with previous studies, this study has identified some new dimensions to test whether Hong Kong's aviation policy can strengthen its status as an international aviation hub, such as (1) protecting the competitive position of a de facto flag carrier, (2) protecting the competitive position of HKIA by increasing the number of operating airlines in a managed way and (3) finding a suitable partner airport to serve as a HKIA's extension for mainland connecting routes. These dimensions can be regarded as critical theoretical contributions because it is essential to effectively identify the drivers and roles of aviation policy, which is a prerequisite for the formulation of an effective aviation policy.
This research can also provide decision support to the Hong Kong government as it further optimizes its aviation policy regarding future infrastructure investment, related supply chain investment, capacity expansion, route optimization, and airport partner selection.
Rights: All rights reserved
Access: restricted access

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