FlyerTalker688786

Ah could you tell me how much cash AA had before declare bankruptcy and how much cash Enron had...

As sscywong said, you have to pay attention to PRASM as well as the yield. By adding seats while not matching the demand, you would have routes that is 100% full while marginal routes like Dusseldorf, Barcelona to drag the overall yields down. You have to remember while CX is adding seats as well as adding planes, while virtually all other Asian carriers are adding more wide-body planes. Air China just added 30 B787 which would be delivered in next 5 years. There are over capacity building in Transpacific market and Euro-Asia market. Unfortunately CX will face competition in all directions. If you add seats in an environment that everybody is adding capacity you will have to sell these excessive capacity in a market rate since your USP and your brand image is gone. The end result: lower yields, lower PRASM, lower profit. And the whole airline can be destroyed if the market became unfavourable (i.e. sudden drop of demand like SARS or Chinese airline improved in both product and service). As I said I think we are in the peak of aviation market for this decade, it is unwise to corner yourself into a position that you have to compromise PRASM and future earnings when you are bleeding money. Stop the conversion programme of B777 would save CX money in short term which could boost investor confidence. Stop the conversion programme of B777 could also save CX in the long term as CX could not compete on price due to higher cost.