Reduced competition for Cathay?
#1
Original Poster
Join Date: Aug 2011
Posts: 1,421
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
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
#2
Suspended
Join Date: Dec 2009
Location: SYD
Programs: QFF SG, VA SL, MR Plat, SPG Plat, HH Diamond
Posts: 445
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.
#3


Join Date: Mar 2006
Location: Malta
Programs: Skywards Silver
Posts: 561
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.
#4


Join Date: May 2009
Posts: 6,978
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.
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.
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...

