Hong Kong Express Airways, owned by gaming tycoon Stanley Ho, will initially focus on those travelling to mainland China on business. The company has secured rights to fly to five mainland Chinese cities, including Hangzhou, Nanjing and Guangzhou.

With its fleet of 70-seater regional jets, it's planning seven more destinations, including the Japanese island of Okinawa.

Hong Kong Express predicts it will take several years to break-even. The carrier will be focusing on business travellers.

Ticket prices are between 10% and 25% cheaper than rivals like Dragonair. That is made possible by its use of smaller planes that have a lower break-even cost per flight.