HK Express responds to CAD on implementing improvements after Golden Week flight cancellations and receives licence renewal from ATLA

Hong Kong, 9 November, 2017 HK Express confirms the Hong Kong Civil Aviation Department’s (HKCAD) feedback on the airline’s full report regarding flight cancellations during Golden Week in early October, as well as the official licence renewal approval from the Air Transport Licensing Authority (ATLA).

HK Express has proactively committed to the HKCAD that it will maintain its existing business and network capacity over the next six months, and will do its utmost to make improvements across the company during this period.

The airline has also reviewed various aspects of its business including its senior management team, internal communications, enterprise risk management, crew trainer resourcing and customer service, and has developed concrete improvement measures to enhance its operations. HK Express will spare no effort in implementing the measures, which include:

New Leadership Team Appointments
HK Express appointed Mr. Zhong Guosong as the Executive Chairman of HK Express, and Mr. Stanley Yau Chiwai as the Human Resources and Innovation Director on 4 October. Mr. Zhong and Mr. Yau bring substantial expertise and experience in operations management, human resource strategy, as well as training and development. These are fundamental in elevating the organisation’s management capability and improving communication with stakeholders including regulators and employees, as well as enhancing the airline's offering to its valued guests.

HK Express also announced the appointment of Mr. Li Dianchun as President of HK Express on 31 October. Mr. Li leads the day-to-day operations of the airline and is driving the mandate to strengthen communication between management and staff. He works closely with Mr. Zhong to develop business strategies and policies for the airline, and to enhance management efficiency and operational stability.

Change of Employment Contract
Under the new leadership, airline staff were immediately given an option to convert their fixed-term employment contracts to permanent contracts, with the aim of increasing employee morale and building a greater sense of belonging within the company.

Stabilisation of Crew Roster
The airline has enhanced internal management procedures and policies, as well as its rostering system efficiency, in order to minimise roster changes and improve standby cabin crew forecasts. This helps to ensure adequacy of standby cabin crew to cover seasonal variation of sick leave. Starting from November, roster publishing for the next month will be brought forward from the end to the 15th of the current month, allowing cabin crew to make better arrangements for their rest and leisure time.

Review of Trainer-to-Crew Ratio
The airline has set up a performance index for the number of crew per Safety and Emergency Procedures (SEP) Trainer headcount, and has implemented contingency plans for training resources, so as to ensure sufficient trainers to meet target crew levels.

Cabin Crew Expansion and Promotions
The airline will continue to recruit new cabin crew and promote eligible cabin crew, in order to ensure adequate standby crew for the airline’s operations and growth while providing career development opportunities for the crew. This will also help to reduce the possibility of flight disruptions resulting from crew illness.

Enterprise Risk Management
HK Express will formulate a cross-department Risk Review Committee to oversee enterprise risks including public relations, branding, operation and finance. The risks will be reviewed regularly to strengthen internal management processes and to handle potential issues in a proactive manner.

Customer Service Enhancement
HK Express is undertaking a comprehensive plan to raise its customer service quality, especially in the areas of disruptions handling and service centre response.

Monthly Updates to HKCAD
HK Express will have a monthly meeting with the HKCAD to report on the performance of all the improvement measures outlined above.

HK Express is pleased to receive notification from ATLA on its approval of the airline’s operation licence renewal. The new licence will be valid for five years commencing 12 November 2017.

HK Express will continue serving Hong Kong with value airfares. Since its conversion to a low-cost carrier in 2013, HK Express has gained strong support from the Hong Kong travelling public; year-on-year passenger growth has been on a strong trajectory while the number of flown passengers for the first ten months of 2017 alone has increased to over 3.1 million. HK Express has also been named one of the top ten safest low-cost carriers in the world in 2017* , bolstering the international stature of Hong Kong as an aviation hub.