FlyerTalk Forums - View Single Post - Wishlist for Hong Kong Express development after Cathay Pacific's acquisition
Old Jul 25, 2019, 10:52 pm
  #9  
pochi
 
Join Date: Apr 2018
Location: HKG,SIN,CAN
Programs: CX MPC DM, HU FWC Gold
Posts: 213
Originally Posted by Chatter
I don't think CX needs to give the incentives OP suggested to lure more customers to UO as they are targeting different customer groups, otherwise there will be heavy cannibalization, which defeats the whole M&A purpose. UO is competing mainly with MM, GK, BX, 7C and LJ on trunk routes to Japan and Korea, customers flying on these airlines are very price sensitive, and so giving them slightly more goodies could do the job nice and well.

My thoughts:
1. Codesharing with UO for some of the CX and KA flights. <-- Probably only routes not operated by CX and KA)
2. sponsoring UO to enter Oneworld as Oneworld Connect member for Club Points accrual on UO's certain fares like U-Biz. <--Super unlikely as LCC isn't designed for this biz model)
3. Integrate Reward-U scheme into Asia Miles <-- Done
4. Currently UO's U-Biz fare allows entering HX's Club Bauhinia (紫荊堂), can change that lounge access for entering Cathay Pacific's Business Lounges (The Wing J, The Pier J, The Bridge, The Deck) / Pay a substantial amount to Enter Cathay Pacific's First Lounges (The Wing F, The Pier F). <-- the fare will become non-competitive as CX will definitely build in a high price for lounge access. CX has tendency to keep its bar high for lounge admittance. HX is different story, they just want cash flow of any amount.
5. Allow seat selection for Free for MPC Members of certain Level, say Gold members. <-- That's another question of potential cannibalization. UO as an independent brand doesn't want to lose this revenue either
6. transfer some A330 to UO for operating some high pax routes like NRT, HND, NGO, KIX, FUK. <-- Possible given the landing slot constraint in HKG

My evil thought is whether CX will swap its NRT slots for UO's HND slots. UO's slots are the intrinsic value of the price CX paid.

My other question is whether UO will continue to have majority of its departure out of MFC, a HX (HNA) territory never been touched by CX.
1. Codesharing with UO for some of the CX and KA flights. <-- Probably only routes not operated by CX and KA)
I think they can do a code-share between UO&CX. Frequency can help attracting O&D customer.

2. sponsoring UO to enter Oneworld as Oneworld Connect member for Club Points accrual on UO's certain fares like U-Biz. <--Super unlikely as LCC isn't designed for this biz model)
UO can be strong on doing Taiwan/Japan connection flight to feed. As I remember Iberia Express or Air Nostrum is also an LCC.

6. transfer some A330 to UO for operating some high pax routes like NRT, HND, NGO, KIX, FUK.
new train up required. See if CX would have such act.

My evil thought is whether CX will swap its NRT slots for UO's HND slots. UO's slots are the intrinsic value of the price CX paid.
(in UO624&625 + KA396&397/1 speaking)
HND red eye slot is still open for to any carrier. HND got no 0700-2200 slot left.
CX can always swtch 524 to HND but I think CX524 is more for connecting passenger to the US.
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