FlyerTalk Forums - View Single Post - CX declining
Thread: CX declining
View Single Post
Old Jun 25, 2013 | 10:26 pm
  #16  
KeepDiscovering
10 Countries Visited20 Countries Visited30 Countries Visited15 Years on Site
 
Join Date: Mar 2010
Location: My existence is what matters
Programs: NZ, QF
Posts: 469
Originally Posted by CrazyJ82
The fixation on this board with market share totally misses the point. In theory CX could build a 100% market share by starting on every route operated by any other carrier out of HKG and then deeply discounting every seat to draw every marginal pax. But why on earth would they do that?
Focusing solely on market shares is not commercially sound (EK will probably disregard this); however, maintaining certain market shares is crucial for driving yields. One cannot charge a premium while having a low share in a market, even with superior products (QR is a good example). The scale is not there.

CX is a network carrier; if it does not have some healthy, steady growth, it will affect not only direct traffic ex/to HKG but also other markets which, in turn, will have pressure on its network (i.e. cannot support multiple frequencies).
KeepDiscovering is offline