AIR HONG KONG (PTY.), LTD.: 2nd Floor, Block 2, Tien Chu Centre, IE Mok Cheong Street, Kowloon, Hong Kong; Phone 852 (2) 761-8588; Fax 852 (2) 761-8586; Http://www. hkstar. com/ ~cchris/airkh. html; Code LD; Year Founded 1986. AHK is incorporated in the Crown Colony in November 1986 to operate as an all-cargo charter carrier from Kai Tak International Airport. Macao businessman Dr. Stanley Ho is named chairman, with Pran N. Parashar as president.
Application for certification and route authority is made in early 1987 and is received in January 1988. A Boeing 707-323CF is purchased from ZAS Airline of Egypt, Ltd. and employed to launch charter flights on February 4. Destinations served include Sydney, Dhaka, Singapore, and London.
A total of 21.43 million FTKs are flown by year’s end and revenues of $6.16 million are generated. Although an operating profit of $252,000 is earned, startup costs result in a $1.1-million loss.
The workforce is increased by 46.7% in 1989 to 88 as a second Stra-toliner freighter joins the fleet in May. A license is received from Hong Kong in February authorizing the airline to offer scheduled cargo flights to 14 destinations. In March, the company is authorized to fly scheduled cargo service to 15 European, Asian, and Pacific destinations, beginning with Manchester (England) in October. In early November, Chairman Ho announces plans to purchase a 50% stake in the airline and become majority owner.
Freight traffic skyrockets 161.2% to 62.56 million FTKs.
Company employment rockets forward another 52.5% in 1990 to 122. In January, Macao businessman Stanley Ho acquires 50% shareholding for $19 million and a pledge to subscribe an additional $26 million over the next two years; he is now the majority owner. Three months later, in April, the Hong Kong government licenses the carrier to launch four-times-per-week B-707F all-cargo flights to Ho Chi Minh City, with two via Hanoi. In June, plans are announced, and then abandoned, to lease six GPA Group DC-8-50Fs.
Cargo traffic swells 25.8% to 78.67 million FTKs.
The employee population is increased another 83.6% in 1991 to 213. In January, scheduled all-cargo flights begin to Nagoya. Two Boeing 747-132Fs, originally operated by the Flying Tiger Line, are purchased from Federal Express and a leased B-747-132F joins the fleet, dramatically increasing lift capacity.
In May, a company application to operate all-cargo flights to 80 cities is rejected by the Hong Kong ATLB. As a result of the new capacity, freight jumps tenfold to 224.13 million FTKs.
The last two B-707Fs are returned to lessors in September 1992 and rent reductions are received on the carrier’s two Jumbojets. Through the first ten months, cargo traffic accelerates to 303.6 million FTKs. The workforce is increased by 3.3% in 1993 to 220. Destinations served now include Dubai, UAE, Delhi, Singapore, Kuala Lumpur, Nagoya, Ho Chi Minh City, Manchester, and Brussels.
Figures are made public through September and show freight up 28.4% to 342.72 million FTKs.
The employee population is cut a huge 27.2% in 1994 to just 160.
On March 23,75% majority control is purchased for HK$200 million ($26 million) from Shun Tak Holdings by Cathay Pacific Airways (Pty.), Ltd. , which operates the carrier as a subsidiary on the Dragonair (Pty.), Ltd. model.
In May, a management agreement is signed with Cathay providing the legal basis for the major’s operation of its new subsidiary. A third chartered B-747-249F now enters service.
In late November, Cathay reports that, while freight ton kilometers are up 34.3% to 631.8 million, a substantial financial loss has been sustained.
Although the workforce remains the same in 1995, the third Jumbo-jet freighter is returned in the face of a large business downturn. During the fourth quarter, three VARIG Brazilian Airlines Viacao Aerea Rio-Grandeuse, S. A.) B-747-2L5Bs are purchased by Cathay Pacific Airways (Pty.), Ltd. and sent to Boeing’s Wichita Division for conversion into freighters for AHK.
On the year, cargo is down by 22.1% to 528,926,000 FTKs.
Airline employment grows by 11.3% in 1996 to 178 and the first of the ex-VARIG freighters arrives from Kansas in May. The company’s five aircraft operate 572.8 million FTKs, an 8.2% increase.
The workforce is increased by 5.7% in 1997 to 183. Flights continue without significant route change, even though all three of the former South American Jumbojets are in service.
It is reported that cargo traffic for the year is up 37.7% to 769.24 million FTKs.
In 1998, the company continues to provide all-cargo services from Hong Kong to Osaka, Manchester, Brussels, and Dubai on a schedule that is independent of that operated by the other freighters of Cathay
Pacific Airways (Pty.), Ltd. Cargo traffic accelerates by 8.5% to 834.31 million FTKs.
Airline employment at the beginning of 1999 remains 183. Cargo traffic drops 3.7% for the year to 803.09 million FTKs.
By the start fo 2000, the workforce has been cut by 2.2% to 179.
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