Originally Posted by Cathay Dragon 666

Wow, if it was that easy why don't any major airlines do it and how did those pesky LCCs survive let alone thrive in this industry?!?!?!

Because at low fares Cathay and Dragon are losing money big time with their overhead expenses. For low fares to work, the flight needs to be completely LCC - no food, restrictive baggage rules, etc. etc. One cannot run a luxury airline with high overhead, and sell low fares, and think that will work, it won't. That's the point of the analysis.

I heard for a luxury airline like Cathay, to maintain the quality they are offering, they have to sell an average of V-fare(!!!) to break even. Anything less than that is pure loss. Now I see Cathay is throwing around Q-fare and even if they fill up the plane with Q-fare they are losing tons of money.

So to amend the situation? Cathay is degenerating towards a LCC airline (a metaphor, but you get the point). Lower service standards, lower quality of food and products, etc. etc.

Dragon had a chance to be the "Best LCC in Asia" when Cathay bought them. Instead Cathay thinks they can run Dragon like Cathay and as a result they left the flood gate open for other LCC airlines to thrive and Dragon is bleeding money the same way Cathay is.