FlyerTalk Forums - View Single Post - New regional business class in 2019
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Old Apr 19, 2017, 5:25 am
  #29  
brunos
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Join Date: Jul 2006
Location: Hong Kong, France
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Posts: 15,564
I agree with QRC3288 that the new regional business seat is a development failure and hurts CX. The strategy in the next few years for regional J is probably the most important decision for the new CEO.

I don't know if the information is available for CX, but some airlines offer some profit accounting per line of business, such as longhaul (LH) or regional. In Europe, many airlines are profitable longhaul, but their international regional operations (the rest is domestcic which CX does not have) are losing money but highly needed as feeder for longhaul. CX must have detailed information on the breakdown of its regional J traffic between feeder and Point to point.
CX, like other Asian airlines, use underutilized day-time LH ac to strategic destinations used by many LH pax. For example is directing a lot of LH A333 to BKK because of connecting American pax (and no nonsstop competition from TG to America). Some of those birds were removed from KUL. But CX does not have enough LH birds for that purpose.
So the question is how CX will position its future regional J.
Will it position itself as a better-than-LCC and be happy to simply offer a better seat than LCCs like Air Asia?
Or will it position itself as the best-airline for LH pax and offer something like SQ?

There are so many parameters to consider, including what the Asian market will look like many years from now, and no obvious solution.
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