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HK Express barred from further business expansion

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In the wake of cancelling multiple flights during the Golden Week peak travel season in October, and the subsequent appointment of a new president, the Civil Aviation Department has now stated that HK Express must suspend the increase of new destinations, additional flights and new aircraft for now – one of the strictest punishments possible, aside from revoking flying licenses.

Hong Kong’s civil aviation authority accepted the budget carrier’s report, which outlined that the incident was caused by a number of resignations by HK Express’ safety and emergency and procedures (SEP) trainers within a short period of time.

At the same time, newly recruited SEP trainers were not qualified to get the necessary approvals from the authority on time.

The report identified lapses in the airline’s internal management and corporate governance, such as inadequate human resources planning, a lack of effective internal communication and underestimation of the impact of the cancellations.

“Further business expansion can only be considered when the management problems are tackled at the root,” the regulator said, South China Morning Post reports. “Hong Kong Express will only be allowed to operate new destinations and flights when the CAD is satisfied it has implemented various rectifying measures effectively.”

In a statement on Thursday night, the airline said it “will do its utmost to make improvements across the company” over the next six months.

The story was first reported by Marketing-Interactive.com.

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