yea, realistically the prices of tickets will just go down. i agree. but i think the general idea stays the same: the benefits do go back to the consumer. no matter how much whinging there is.

the real "losers" in all of this are the same cohort every time - the people who actually are willing to pay more cash for their tickets. It's not just like that in Y, but also J and F. Guys paying $25k USD for a round-trip F ticket ex-JFK are subsidizing all the AS (and previously AA) mileage burners loaded with credit card points. Just like economy fliers paying HK$5800 HKD round trip to/from SIN on CX are subsidizing the "fanfares" and whatever nonsense they have going on.

Being very candid, combined with the MPC changes and Y class cuts, I've transitioned my own spending to buy more regional J fares. But I don't see how long this lasts, since CX regional J class is really crap, and I'll happily jump at the next alternative if one emerges. I abhor the CX regional J product...fortunately, long-haul J emerges enough so it's not the end of the world (as a side note, I'd prefer the PEY seat to the regional J seat). I could genuinely see myself picking Air China or China Eastern J in the not-too-distant future for China flights - those carriers are improving, and are lightyears ahead of where they were a decade ago. Longhaul I'm not there yet for Chinese guys (however, I'm way over the hurdle to flying others: BR, SQ, EK, even NH recently). But short-haul I've had better flights on mainland carriers than CX with surprising frequency.

This is where I genuinely think CX is mucking it up. They're doing this bizarre hybrid of full-service + cost cutting + pretending KA might / might not (?) be an LCC. KA has a lower cost structure, but ironically is known among frequent fliers as a superior choice to CX. Meanwhile, CX pretends to be a premium brand but has consistently cut soft product in premium cabins, particularly J class. And finally, CX is genuinely treating Y class more and more like a LCC. If you're a full service carrier, EK and QR have shown the way how you can absolutely jam pack Y class, and ride the cotails of your "premium" products. I don't think this is a bad strategy for CX...but the problem is CX is still screwing it up. Admittedly, I've never flown EK or QR Y so I can't totally relate, but my impression is they aren't TERRIBLE: you get IFE, decent service food and drink, but know the space is gonna be very tight. Okay, maybe you can live with that. But when CX service is bad, catering is a joke too, and now your space is gone, I just don't get why that's necessary. I see it a result of bad strategy.

My question to CX is, what market are you competing for? Is there any coherent strategy here? Because trying to be both full service and LCC (translation: maximizing economy yield) is not going to work in my opinion. Neither is treating KA as your LCC alternative....this is a disaster IMO. Nor do I think this is CX's strategy, given they just lobbed the Cathay name on KA planes. The competition is intense, that is undeniable...a.) mainland China connecting point to point to North America and Europe, a trend that will only accelerate as more 787s and A350s are delivered, b.) ME3, c.) (tied in with "a") 787 and a350 changing point-to-point profiles all around, so regional carriers outside China are also going point to point as well. Not to mention the pure cargo market is getting crushed. It will require a braintrust, less fuel "hedging", and some real outside the box thinking to come up with an answer that I don't have myself.