CX's long term revenue goal is to lure people into the FFP *AND* ripping them off over time ;)

I can think of two major incentives to the MPC FFP program which would improve enrollment:
a) Status Bonus Miles
b) Forego the mileage-meter-reset for GR>SL>GO>DM qualification. Make it simple and clear like 99% of other FFPs in the world.

I'd rather have some bonus miles in recognition of my status than a bottle of leftover Krug given to me by the FA.

However, none of this would happen if Tony Tyler is still in the CEO seat.

I joined MPC since 1998 and have written countless letters to MPC with the above suggestions. Nothing. Never will.

SSW207,

Stop ripping CX just because you don't fly enough to make CX Gold. I am enjoying my guaranteed cheap fare (savings of 1-2K HKD weekly), which is not offered by many airlines (if any) and better than anything you mentioned above. Not to mention the OP UPs and priority standby clearance I have been getting weekly (coz it's so much harder for others to make GO / Diamond)....

I flew enough on OW this year to surpass GO requirements but yet I chose to align with another FFP, and the topic under discussion relates to why some people are foregoing MPC into other FFPs. In fact, CX's GO and DM pool was enlarged twofolds by the merger of KA as there are lots of PRC-HK commuters, so its not exactly too hard to enter the GO and DM universe anymore.

This thread is about CX's "revenue optimization" which devalues the FFP in the long run. As the GO and DM elite universe enlarges, the perks increases operating expenses and/or enroaches potential revenue. Your "savings of HKD 1-2K per week" is a very attractive potential revenue stream for CX. One could imagine the potential revenue CX can receive if they revised the guaranteed seat fare buckets upwards starting from K. This is exactly what they did with the mileage upgradeable fare buckets two years ago.

Keep in mind elite tier benefits can be easily taken away, but take years to be added back. What you're enjoying right now could be history next year. Without active discussion and feedback on the market, airlines can take FFP perks away without a second look, so thats why Flyertalk exists.

Well said.

If CX really want to be like "industrial average" then they should really position themselves to be competitive against other airline's FFP, not trying to ripped off their customers like "industrial average."

The only reason I'm not dumping CX yet is because I have so many bad experiences with AA (last minute cancellation of flights, rude ground crew, bad attitude FAs even in Biz class, etc.) However, CX is really going in the wrong direction if they think they can charge their way out of recession.

I can guess CX's next cost-cutting step is to spin off the CPLP (CX Loyalty Programmes) subsidiary like Air Canada did to Aeroplan, to reduce operating expenses and recoup some capital. Its a very clear indication things are heading this way as CX is retracing AC's steps of setting up various charges and fees payable in miles or $, to reduce the Liability in terms of outstanding unclaimed Air Miles on its books.

So the detailed T&C are available:

http://www.cathaypacific.com/cpa/en_...tralegroomseat

Some interesting highlights:

So if you are travelling with a non-member, and you have status, your companion can no longer get an exit row without paying - currently a non-member will be able to sit next to you if you request an exit row.

http://www.cathaypacific.com/cpa/en_...roomseat/tandc

So basically there is no refund once you pay your fee. Which also means once a non-status member buys their seat, a status member can't push them out.

The true way to make passengers loyal is to provide a decent service and product. Was just on a Y flight from SYD, and the flight attendants charged their trolleys down the aisles like bulls, smashing into the seats at least three times. The food was abominable and there really wasn't anything special about the flight that set CX apart from QF or BA.

Things have really disintegrated at CX.

What about online check in? Will those seats be released then?

I knew passengers are in trouble when Asian airlines realized, 10 years ago, that they don't have to offer the absolute best service to compete, but they just have to be relatively better than their competitor to win. That's when you start seeing CX, EVA, SQ, JPL, ANA, etc. reducing services, but we just took it because, well, it still beats other trash airlines.

However, I think they have done it to the point that they are not much head and shoulders better than western airlines, and to western airline's credit they are catching up in other areas (like AA's ridiculous FFP.)

I agree about the food on CX. 10 years ago I used to go hungry on purpose just to eat more on CX (and they usually give me seconds when I ask), but now I make sure I'm full from the lounge food because CX food (in Y) are generally not up to par.

Agree. On my recent flights on CX, I observed that the entree in biz class was no better than the food served in coach.

This is, practically speaking, already done. They operate as a completely separate business unit with arms-length accounting, from everything I've heard (reported here before as well). I'm not sure how much more benefit they'd gain by making it completely independent?

Per http://www.guardian.co.uk/business/2...add-on-charges, some airlines are considering charging for Overhead locker, which means restricting carrying on.

Similar to AC Aeroplan's rationale:

1) CX receive proceeds from the complete spinoff of the unit as CX could charge the potential buyer multiples of the current book value of CPLP

2) Lock-in a constant revenue stream because the spun-off CPLP needs to buy award seats from CX thru licensing and reciporcal agreements. This would exceed the costs for CX to buy miles from CPLP

3) Enhance CX's capital base, therefore (theoretically) improving the share price as it will affect the ratios, or provide CX a sum of money to develop its core business

So who would buy CPLP in this case?

1) Banks/credit card companies. AMEX is already a mini-FFP program by itself.

2) Consumer incentive scheme marketing companies (e.g. Air Miles for Canada/Europe)