Yesterday morning, British Airways put into motion the plan to completely close the British Airways Hong Kong base. Eighty-five Hong Kong flight attendants were informed they would be laid off. Some would be laid off effective immediately while others would work another month. It’s a shocking closure from one of the airline industry’s strongest players. It also tells us a lot about the cut-throat world of staying in the black.

BA Hong Kong cabin crew fired

British Airways, part of airline operator IAG, is one of the most established brands in the sky. It operates the highest revenue earning flight in the world and has been flying London to Hong Kong for more than 80 years. Presumably, the current schedule would be well booked because for several years BA has operated two daily flights between the Hong Kong and the UK capital. However, it would seem, this is not the case.

The South China Morning Post reported this week, in its half-year financial earnings meeting with analysts, IAG highlighted BA’s Hong Kong to Heathrow service as an underperforming route. The CFO, Enrique Dupuy de Lome, claimed Cathay Pacific’s market dominance of the route had pushed BA out. Cathay Pacific flies 5 times daily to Heathrow. So it would seem the decision to close the HK base is connected to these figures.

BA Hong Kong base closure

In deed, BA was very forthcoming with its reasons for closing the Hong Kong base. Commercially, the flights weren’t delivering enough profit to justify the base. It will continue the Hong Kong to London service, but its London-based crew will service the aircraft alone.

A risky decision for BA?

I’m not a financial analyst but I have a little experience in customer service design. And one of the things which stands out here is the shift in the product this will create. Hong Kong still has a close relationship with the UK and for those travelling to London, BA is a natural choice. However, Cathay Pacific is the flag carrier and once BA closes its Hong Kong base, it will offer customers something BA doesn’t.  Namely - Cantonese and Mandarin speakers in the crew.

Having a Hong Kong base for this 11+ hour flights meant Hong Kong nationals made up a portion of the team on the BA flights to London. And while English is one of the official languages of Hong Kong, having Cantonese and Mandarin was a huge service plus. Once BA closes this base, I’m afraid they will frame themselves as just another foreign brand. This could be the first step towards giving up this route altogether.

Are Hong Kong crew just too expensive for BA?

BA told us this week the move was based on, “a detailed and thorough review of our global operation” and an efficiency drive. But with demand for pilots and crew in Asia soaring, so have salary expectations.

In a statement from The BA Hong Kong International Cabin Crew Association, we were told, "The association thinks the company is just trying to save costs, as the more experienced employees have more ideal salaries and welfare.”

The unions also confirmed that 57 of the 85 Hong Kong-based in-flight crew were laid off immediately. The other 24 will be let go at the end of next month. Incidentally, the 24 kept on have temporary contracts which expire naturally next month anyway. So, technically, BA have only laid off 57 staff. Talk about saving costs.

But that said, they're running an airline - not a summer camp. And times are hard.