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-   -   Reduced competition for Cathay? (https://www.flyertalk.com/forum/cathay-pacific-cathay/1407716-reduced-competition-cathay.html)

Kachjc Nov 15, 2012 3:53 pm

Reduced competition for Cathay?
 
http://www.scmp.com/business/compani...fleet-next-two

seems HK airlines aggressive expansion has stalled, net growth of 3 aircraft only in the next 2 years.

Wonder if this benefits cathay??

this contradicts this article

http://centreforaviation.com/analysi...e-region-86233

When is Jetstar HK launching they seem to be constantly delaying their launch, can't wait for cathay fares to go down

yohy?! Nov 15, 2012 8:03 pm

it will help their yields a little as HKA gradually disappears, they have their own problems though with over capacity having grown agressively since 2010 they now need to drop back a bit.

hamallu Nov 16, 2012 5:40 am


Originally Posted by Kachjc (Post 19690883)
When is Jetstar HK launching they seem to be constantly delaying their launch, can't wait for cathay fares to go down

Even if Jet* HK were to launch, it would have minimal impact on CX/KA for the short/medium-term until HKG has the 3rd runway and Terminal 2's Satellite concourses in place. As it is right now, HKIA forecasts HKG reaching capacity around 2020 with the current 2-runway system and that forecast does not include the opening of a 3rd locally based airline.

So if Jet* HK were to launch, it would most likely mean HKG reaching capacity even earlier, thus reducing their chances to expand and effectively compete with CX/KA. Their other option would be to use the A321, which may be a bit too big on certain routes at certain times of the day, this can be seen with KA operating a relatively small fleet of the larger A321 vs. A320s, resulting in overcapacity and a lowering in yield. After all, LCCs are not always low-fares carries and still need a good mix of higher priced tickets to be profitable. An alternative option would be using the 788s, however, those are slated to replace Jet* Australia's own A330s and with QF cancelling the rest of the 787 order, this effectively means they will not have any spare for use in expansion.

Cathay Boy Nov 16, 2012 7:42 pm


Originally Posted by hamallu (Post 19693710)
Even if Jet* HK were to launch, it would have minimal impact on CX/KA for the short/medium-term until HKG has the 3rd runway and Terminal 2's Satellite concourses in place. As it is right now, HKIA forecasts HKG reaching capacity around 2020 with the current 2-runway system and that forecast does not include the opening of a 3rd locally based airline.

So if Jet* HK were to launch, it would most likely mean HKG reaching capacity even earlier, thus reducing their chances to expand and effectively compete with CX/KA. Their other option would be to use the A321, which may be a bit too big on certain routes at certain times of the day, this can be seen with KA operating a relatively small fleet of the larger A321 vs. A320s, resulting in overcapacity and a lowering in yield. After all, LCCs are not always low-fares carries and still need a good mix of higher priced tickets to be profitable. An alternative option would be using the 788s, however, those are slated to replace Jet* Australia's own A330s and with QF cancelling the rest of the 787 order, this effectively means they will not have any spare for use in expansion.

Don't bank on it. What will probably happened is HKG goes the route of what American major airports are going through, too many flights crammed into certain slots and you get frequent delays. Because airlines usually sue for favoritism of certain airlines getting preferred treatment, and airports usually just try to settle it away by cramming the slots.

Of course that's American culture, maybe HKG won't have that problem since CX seems to have a lot of pull at the airport and in the government...


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