Kachjc

http://centreforaviation.com/analysi...he-wings-93439

"The view may be to shore up investor confidence as largest shareholder Swire looks to sell, but beneath the surface Cathay is apparently implementing new initiatives to try to keep a hold on the budget-conscious market."

I hope this does not happen
where does CAPA get their info from
and if CEO's keep attending their forums surely they are legit??

Kachjc

not to mention this is another-"cathay has no future article"!

yohy?!

who writes these articles..interns?

cx are well justified not to launch their own LCC given the historical evidence by many other legacy carriers that LCCs brands simply cannibalise the parent. LCCs in asia seem to work best into developing countries but it's not like they are massively profitable (just look at air asia or jetstar asia...thinnest margins).

just saw another one on the same site where they claimed jetstar would replace qantas as Australia's biggest carrier by pax numbers soon (read: total nonsense).....

hkflyer2014

One advantage CX has over many other airlines is that due in part to the HK market itself, CX is able to generate a significant amount of its revenue from premium classes. Like other airlines, CX sells economy to fill planes but I suspect they rely on that less than other carriers such as the US or European airlines.

HK is also a fairly isolated market and its difficult for passengers to choose other airports for fare savings (as opposed to say someone who chooses to fly from Brussels to save big $ to Asia as opposed to Amsterdam just because the way the fares were structured).

CX HK

Worth a read if you have time:

http://www.aspireaviation.com/2013/0...-2013-outlook/

peasant

LOL. I would hope an intern would have taken more care..

"As passengers value direct flights more than non-stops, airlines understandably put a yield premium on non-stop flights"

Cathay Boy

I think CX's future is tied to how attractive Hong Kong can be as an international hub into East Asia. I think as China grants more major airports to support direct international flights (rather than having to transfer primarily through Beijing and Shanghai), and as mainland Chinese airlines get more competitive in quality and service, CX is going to see a steady decline of both cargo and pax traffic yield.

I do agree regional traffic is key to "second Spring." Many mainland Chinese still considers Hong Kong to be the pearl of shopping and pleasure. Taipei and Hong Kong golden route remains very golden. Hong Kong really needs to tap into the mainland market.

Kachjc

say Swire did sell
what would happen to cathay under Air China(most likely)

I think cathay staff would be outraged
also Hong Kong will lost one of its iconic brands to China

FlyerTalker688786

CAPA certainly has some news resources, or insider rumours.

But I found many of CAPA's analysis very amatuer and lack of depth. Some information is totally wrong. However, there is one or two member on Flyertalk working in CAPA. And they will attack if they saw your post questioning their skills (I have been attacked few times by people here when I question CAPA, not sure if they are CAPA employees, just to clarify).

moondog

I just finished reading the Innovator's Dilemma based on the advice of a colleague. One of the key theses presented in the book is that disruptive innovations often occur when companies create new markets that have lower margins (but, higher volume) than existing markets. If you read Air Asia's annual report, you will note that this sums up there MO, and has worked quite well for them.

sl0uch

So-called analyses in any industry often amount to nothing more than a couple people's somewhat educated opinion. Even with the best of intention, they may not be an accurate judgment of the situation at hand - so imagine what an obvious bias would read like? :P It's also kinda sad to see you can profit from writing stuff like these as long as you claim to have a few sources. Oftentimes these kinds of writing are also not neutral, i.e. if I were a CX rep I could reach out to them and most likely alter the tone of their next article by the sheer force of my rapport.

It's common across every field nowadays. Say, if you're in taiwan, you can make up the most ludicrous rumor about Apple products (remember to claim you've got a guy on the inside!) and within the day every major news outlet on Earth will carry whatever you spin as news. But I'm old school and I like a deeper, more measured and controlled approach to analyses.

380Flyer

I'm sorry to say this but the CAPA (Copy And Paste Aviation) articles are simply wrong. The guy writing these articles (Will Horton) simply has no depth in his analysis.

CAPA does not have insiders at Cathay for them to draw this rather outrageous statement that Swire is about to sell. I can assure you that Swire is not selling.

CAPA is simply wrong as they have been with all their articles. I think they should just stick with copy and paste aviation articles via their daily news.

380Flyer

The person who writes all these weird articles is Will Horton who is CAPA's Senior Analyst (North Asia). Check his photo out here:

Introduction to Will Horton when he joined CAPA but he now looks after North Asia:

http://centreforaviation.com/analysi...ion-capa-57310

Here is the full list of amateur analysts:

http://centreforaviation.com/about-capa/

After reading his articles and meeting him, I would never hire him.

Kachjc

I wonder what Slosar would think of these, considering he attends their meetings!

380Flyer

I've circulated this article to my contacts at CX and they were surprised to read the contents of the analysis.

Best if CAPA gets rid of the author as his past articles on CX made no sense whatsoever.

I know the previous CEO of CX didn't think much of CAPA. He dubbed them as "Copy And Paste Aviation" which I have to fully agree with judging by their newsletter. In fact anyone can do this type of newsletters.

It's gathering data Feds from Lexus-Nexus and copying/pasting it into a template for mess email out. Simple as that! What a great business model.

I think after Solsar reads this latest article, he will have second thoughts about CAPA.