FlyerTalk Forums - View Single Post - Cathay Pacific 2017 first half results - HK$2.05b loss
Old Aug 18, 2017, 1:58 pm
  #61  
KrazyTrain18
 
Join Date: Aug 2011
Programs: Marco Polo
Posts: 546
Originally Posted by 380Flyer
Read this!

Analysts, including Ms Corrine Png, chief executive officer of Singapore-based Crucial Perspective, and Mr Shukor Yusof, founder of Endau Analytics in Malaysia, have said that Cathay needs to take a leaf out of rival Singapore Airlines' book and start a budget carrier, or turn its affiliate Cathay Dragon into one to keep a grip on Hong Kong passengers.

"They still believe they have this unique market position," Mr Shukor said about Cathay. "They don't realise that the way things were done doesn't work anymore. Their reluctance to change is very disturbing."


This is when I really wonder if these analysts have any idea what they are talking about and how much they really understand the airline industry let alone the organisation that they are commenting on.

HKIA is slots constraint and why on earth would Cathay Pacific start a low cost carrier when they can manage low fare pricing within their existing offering. If these analysts attending the management briefing, they will understand that CX/KA are looking at different options to further tap into offering low fares through an expanded fanfares offering.

Conclusion: Corrine Png from Crucial Perspective and Shukor Yusof from Endau Analytics are just BAD ANALYSTS who don't understand the business.
I think those analysts have a "hometown" bias, as you pointed out Cathay are in a much different operating market than SQ. HKG slot constraint essentially negates the ability to launch an LCC subsidy.
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