Is CX happy that HX is in trouble?
#1
Ambassador, Hong Kong and Macau
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Location: HKG
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Is CX happy that HX is in trouble?
Besides the collective sickie "strike", Apple Daily (which is just 0.01% more credible than discuss.com.hk/HKGolden) claim that:
- HX doesn't have enough cash to pay its cleaning company, so FAs are cleaning planes for the past few days
- HX is manning A330s with minimum of 8 crew instead of minimum 10 previously required
- some of HX delays attributed to lack of tugs. HX CEO claim they've ordered more and awaiting AAHK license to put them in service, but HX staff claim even with new tugs they don't have enough trained tug drivers to go around
http://hkm.appledaily.com/detail.php...category=daily
CX must be drinking their own champagne...why bother protecting their BIS passengers when their nearest home competitor is about to go out of business?
#2
Join Date: Jan 2011
Posts: 2,344
HX woes continue
Besides the collective sickie "strike", Apple Daily (which is just 0.01% more credible than discuss.com.hk/HKGolden) claim that:
- HX doesn't have enough cash to pay its cleaning company, so FAs are cleaning planes for the past few days
- HX is manning A330s with minimum of 8 crew instead of minimum 10 previously required
- some of HX delays attributed to lack of tugs. HX CEO claim they've ordered more and awaiting AAHK license to put them in service, but HX staff claim even with new tugs they don't have enough trained tug drivers to go around
http://hkm.appledaily.com/detail.php...category=daily
CX must be drinking their own champagne...why bother protecting their BIS passengers when their nearest home competitor is about to go out of business?
Besides the collective sickie "strike", Apple Daily (which is just 0.01% more credible than discuss.com.hk/HKGolden) claim that:
- HX doesn't have enough cash to pay its cleaning company, so FAs are cleaning planes for the past few days
- HX is manning A330s with minimum of 8 crew instead of minimum 10 previously required
- some of HX delays attributed to lack of tugs. HX CEO claim they've ordered more and awaiting AAHK license to put them in service, but HX staff claim even with new tugs they don't have enough trained tug drivers to go around
http://hkm.appledaily.com/detail.php...category=daily
CX must be drinking their own champagne...why bother protecting their BIS passengers when their nearest home competitor is about to go out of business?
#3
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Kind of the same situation as VX in the US and PD out of YTZ.
#4
Join Date: May 2009
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#5
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I don't think it's a won't - if HX folds it's a serious loss of face for HU.
It's more than less likely a can't - but why?
Something about not being able to increase their stake to a majority?
Or not being able to invest more unless other HX shareholders also do so?
#7
Join Date: Oct 2011
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But anyway it's good to start a new thread.
I don't think CX really cares about HX at this stage - as they don't present a big threat to CX IMO, or only a very limited one. HX will only present a threat when they are doing good and taking CX's corporate business away - now it's the "otherwise" case... HX can only be considered as a regional airline with limited coverage rather than an "International Airline".
My view is if HX lapses, there will be another new airline that comes up to replace its market position. China Eastern has already got its hand dirty with the Jetstar Hong Kong deal, yes I know it's a budget airline but who know what will happen next?
So despite HX survives or not, I reckon CX's life won't be too comfortable in this competitive market anyway. Its attention should be paid on more important stuff such as strategies and business retentions... rather than keeping its eyes on how badly a local competitor operates and "feel happy" about it.
#9
Join Date: May 2009
Posts: 6,978
CX wants to dominate HKG the way SQ dominates Singapore. Of course they are happy HX is going to tank. It is really hard to invade a market when the market already has arguably the top 5 airline in the world. Investors and management need to realize you probably need to run in the red for up to 5 years before you can really invade CX turf. CX has no problem lowering prices to drive any competitor out.
#10
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it is strange that no one mentioned as was often in the past, the issue related to the desire of parent company Hainan to join OW, allegedly blocked by CX because of HX. Maybe what we are seeing now is the final endgame, that is HX is left to die, even if Hainan could back up the with, and CX is left without competition in its home, and withdraws any objection to Hainan to join (and also goes towards the wishes of both BA and AA for a mainland partner). For CA to switch to OW there is always time...
#11
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HX owes over 20 Million to HAECO and more to HAS.
They don't have tugs, because they can't pay for them.
They don't have staff cause there is huge attrition rate due to low pay, or as of recently late pay.
While Hainan will support them.. one must consider how long.
Also, the most of the pilots working there are 3rd world guys (not being discriminatory) who will work for them as it pays more than working in Indonesia, but not to the same standard as BA/CX ect..
They don't have tugs, because they can't pay for them.
They don't have staff cause there is huge attrition rate due to low pay, or as of recently late pay.
While Hainan will support them.. one must consider how long.
Also, the most of the pilots working there are 3rd world guys (not being discriminatory) who will work for them as it pays more than working in Indonesia, but not to the same standard as BA/CX ect..
#12
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#13
Join Date: Aug 2011
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CX wants to dominate HKG the way SQ dominates Singapore. Of course they are happy HX is going to tank. It is really hard to invade a market when the market already has arguably the top 5 airline in the world. Investors and management need to realize you probably need to run in the red for up to 5 years before you can really invade CX turf. CX has no problem lowering prices to drive any competitor out.
#14
Join Date: Dec 2001
Location: China
Posts: 1,551
HX and CX don't have an interline agreement (i.e. they don't accept each other's tickets) So HX would need to go and physically purchase tickets on CX, rather than just "endorsing" them across. HX (according to website, which has list of interline agreements) does have agreement with Air China, so presumably they would be giving business to them (and other airlines they have agreements with), not CX/KA
#15
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it is strange that no one mentioned as was often in the past, the issue related to the desire of parent company Hainan to join OW, allegedly blocked by CX because of HX. Maybe what we are seeing now is the final endgame, that is HX is left to die, even if Hainan could back up the with, and CX is left without competition in its home, and withdraws any objection to Hainan to join (and also goes towards the wishes of both BA and AA for a mainland partner). For CA to switch to OW there is always time...