Cathay Pacific posts worst results since 2008
#92
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,767
Just booked a couple of TPAC roundtrips given the current promotional fares where I am... 2.8K in J isn't bad considering everyone else is at 4k... but for normal fares, they are comparable with other airlines in the region (or more expensive if ex-HKG) so they need to differentiate... which they are not doing a good job on
The promotions are their recognition finally they have to bring their fares more in line with their competitors. Hope that is not too late.
This was a "home airline" to us so I have every sentimental feeling wanting it to do well... but the management's performance in the past few years has been very disappointing.
#93
Join Date: Sep 2015
Programs: BA Gold, IHG Spire Ambassador, Hilton Silver
Posts: 54
Interesting how all these other airlines that are fitting the reverse herringbone j are years behind cx - most are paying cx royalties - shows what a great seat it is.
aa only have the licence for the 777-300er do they tried the dreadful ying yang reverse herringbone on the 777-200
the fact that other carriers are putting in these seats is testament to the great product !
the fact that the ME airline es are coming up with insane products is simply due to free flowing money
the fact cx was overvalued recently is no reason to compare cx to a lcc
i see see no evidence of cost cut
new lounges all over the place , new fleet , updated j product in new fleet , excellent F suite,
cutting a few loss making routes is not cost or cost cutting its sensible business
look at Skytrax - ba aa etc etc don't appear - cx is still way up there
aa only have the licence for the 777-300er do they tried the dreadful ying yang reverse herringbone on the 777-200
the fact that other carriers are putting in these seats is testament to the great product !
the fact that the ME airline es are coming up with insane products is simply due to free flowing money
the fact cx was overvalued recently is no reason to compare cx to a lcc
i see see no evidence of cost cut
new lounges all over the place , new fleet , updated j product in new fleet , excellent F suite,
cutting a few loss making routes is not cost or cost cutting its sensible business
look at Skytrax - ba aa etc etc don't appear - cx is still way up there
The J class amenities kit is rubbish - compare what CX offers to what Qatar offers. On overnight flights Qatar offers pyjamas and slippers. Even Sri Lankan airlines provides slippers.
And don't get me started on food. I've flown Qatar, Sri Lankan, AA and CX in J over the past year and I would rate the food quality in that order (from best to worst).
CX has a good hard product but its soft product is really letting its premium cabin proposition down.
#94
Suspended
Join Date: Aug 2010
Location: Vancouver
Programs: CX DM, SQ TPP, QF GO LIFE, OZ*G LIFE, Marriott TIT LIFE, WOH GLOBALIST LIFE, HH DM, BA GO LIFE
Posts: 598
Agree that CX has a great hard product but its meals need improving and there are plans for this which should take care of the weakness in its soft delivery component. The other strength is the great service from cabin crew.
CX needs to start thinking about slippers and PJs in J class and get a branded amenity kit. Remeber Crabtree & Evelyn from the past!
Over the past 2 days, Bloomberg with its sensational reporting has made a big faisco about nothing and its reporting leaves alot to be desired.
It is obvious that markets want Ivan Chu out and Rupert Hogg in - this is going to be announced in June from how I am reading into the news developing internally with 30 percent reduction in middle to senior management positions.
All in all, CX still has one of the strongest balance sheets in the industry but it needs to adapt to the new realities of the competitive market environment in order to retain its strong financial standing.
I love flying with them and I think they will become a much stronger airline after they restructure but it does require a strong leader which I think is on its way!
CX needs to start thinking about slippers and PJs in J class and get a branded amenity kit. Remeber Crabtree & Evelyn from the past!
Over the past 2 days, Bloomberg with its sensational reporting has made a big faisco about nothing and its reporting leaves alot to be desired.
It is obvious that markets want Ivan Chu out and Rupert Hogg in - this is going to be announced in June from how I am reading into the news developing internally with 30 percent reduction in middle to senior management positions.
All in all, CX still has one of the strongest balance sheets in the industry but it needs to adapt to the new realities of the competitive market environment in order to retain its strong financial standing.
I love flying with them and I think they will become a much stronger airline after they restructure but it does require a strong leader which I think is on its way!
Have you tried CX J class food recently (in particular the ones departing late at night from HKG)? Have you taken any intra Asia red eye flights in economy? Have you seen the amenity kits now offered in J and F and have you compared what CX offers against what its competitors offer? If you have (as I have) then the cost cutting would be fairly obvious.
The J class amenities kit is rubbish - compare what CX offers to what Qatar offers. On overnight flights Qatar offers pyjamas and slippers. Even Sri Lankan airlines provides slippers.
And don't get me started on food. I've flown Qatar, Sri Lankan, AA and CX in J over the past year and I would rate the food quality in that order (from best to worst).
CX has a good hard product but its soft product is really letting its premium cabin proposition down.
The J class amenities kit is rubbish - compare what CX offers to what Qatar offers. On overnight flights Qatar offers pyjamas and slippers. Even Sri Lankan airlines provides slippers.
And don't get me started on food. I've flown Qatar, Sri Lankan, AA and CX in J over the past year and I would rate the food quality in that order (from best to worst).
CX has a good hard product but its soft product is really letting its premium cabin proposition down.
#96
Join Date: Oct 2013
Programs: CX DM, QF PL
Posts: 96
Also, CX need to offer something in line with brand - Crabtree and Evelyn is way too British. There must lots if contemporary Asian brands out there.
#97
Join Date: Dec 2008
Location: Hong Kong
Programs: CX DM
Posts: 1,140
Those of us who have been flying with CX for a long time certainly see it.
Catering has suffered clear deterioration in F, J and Y, with Y dropping to below US airline standard. Amenity kits have also gone downhill. MPC earn/burn has deteriorated. Upgrades cost more as eligible fare classes are now more restricted. No more hot (or cold) towels in Y. Pillows on demand in Y. No more hand towels in J toilets.
What other evidence are you looking for?
Catering has suffered clear deterioration in F, J and Y, with Y dropping to below US airline standard. Amenity kits have also gone downhill. MPC earn/burn has deteriorated. Upgrades cost more as eligible fare classes are now more restricted. No more hot (or cold) towels in Y. Pillows on demand in Y. No more hand towels in J toilets.
What other evidence are you looking for?
#98
Join Date: Jan 2011
Location: Some hole
Posts: 2,783
The almonds and chocolate bar they used to serve were Blue Diamond and Ghirardelli respectively, but now its local HK with CX packaging.
The peanuts have gotten smaller.
The butter is now some cheap brand, not Lurpak.
Amenity kits used to be Dermalogica and Murad skin care products with agnes b bags.
Cost cutting shows in the catering.
The peanuts have gotten smaller.
The butter is now some cheap brand, not Lurpak.
Amenity kits used to be Dermalogica and Murad skin care products with agnes b bags.
Cost cutting shows in the catering.
#99
Join Date: Oct 2013
Programs: CX DM, QF PL
Posts: 96
You are being ironic, right? What 'industry leading' business class seat? The angled lie flat 'slide' seat? or the 'coffin seat'?! CX only started to lead in JCL seats was with the cirrus reverse herringbone from about 2012 (irc). Long after TT left. Also, Chu has 'overseen' new routes to LGW, MAD, BCN, BOS etc etc in recent years. hardly a measure of string leadership.
#100
#101
Join Date: Oct 2013
Programs: CX DM, QF PL
Posts: 96
The almonds and chocolate bar they used to serve were Blue Diamond and Ghirardelli respectively, but now its local HK with CX packaging.
The peanuts have gotten smaller.
The butter is now some cheap brand, not Lurpak.
Amenity kits used to be Dermalogica and Murad skin care products with agnes b bags.
Cost cutting shows in the catering.
The peanuts have gotten smaller.
The butter is now some cheap brand, not Lurpak.
Amenity kits used to be Dermalogica and Murad skin care products with agnes b bags.
Cost cutting shows in the catering.
All companies have to cut costs to maintain competitive position. Clearly, it would be better to cut non-customer facing costs, but given the overall excellent experience when flying with CX vs most (not all, I agree) carriers, I can live with smaller peanuts!
#102
Join Date: Aug 2011
Programs: Marco Polo
Posts: 546
You are being ironic, right? What 'industry leading' business class seat? The angled lie flat 'slide' seat? or the 'coffin seat'?! CX only started to lead in JCL seats was with the cirrus reverse herringbone from about 2012 (irc). Long after TT left. Also, Chu has 'overseen' new routes to LGW, MAD, BCN, BOS etc etc in recent years. hardly a measure of string leadership.
#103
Join Date: Aug 2016
Programs: CX Life Time,TG,
Posts: 266
A few more numbers:
In 2014 airline revenue was 101B and into plane fuel cost 39B.
In 2016 airline revenue was 87B and into plane fuel cost 19B.
Perhaps the elite from Oxbridge should be telling us how they managed to keep the revenue reduction to only 14B, thereby generating 6B to go towards the 8B cost of their self inflicted gambling losses.
I just wish the Swire family would act like the Keswicks of Jardines in the 80's when they kicked out the top brass and parachuted in a new leader after he lead the business into disarray.
In 2014 airline revenue was 101B and into plane fuel cost 39B.
In 2016 airline revenue was 87B and into plane fuel cost 19B.
Perhaps the elite from Oxbridge should be telling us how they managed to keep the revenue reduction to only 14B, thereby generating 6B to go towards the 8B cost of their self inflicted gambling losses.
I just wish the Swire family would act like the Keswicks of Jardines in the 80's when they kicked out the top brass and parachuted in a new leader after he lead the business into disarray.
Last edited by TomYoung; Mar 16, 2017 at 7:52 pm
#104
Join Date: Jul 2014
Location: SFO/HKG
Programs: ex-UA 1K, AA EXP, Hilton Diamond
Posts: 535
My dentist needed to go to Asia last year and CX J fares were almost US$2K more than the competitors. Needless to say he went for the competitor.
The promotions are their recognition finally they have to bring their fares more in line with their competitors. Hope that is not too late.
This was a "home airline" to us so I have every sentimental feeling wanting it to do well... but the management's performance in the past few years has been very disappointing.
The promotions are their recognition finally they have to bring their fares more in line with their competitors. Hope that is not too late.
This was a "home airline" to us so I have every sentimental feeling wanting it to do well... but the management's performance in the past few years has been very disappointing.
However, CX really dropped the ball by not being even remotely competitive or caring about the lasting image of the brand. They are trying to fight two battles at the same time - they want to maintain market share in Asia and the transfer passengers and also capture the premium segment in the US and EU market. Empires crumble when attacked on both fronts.
#105
Join Date: Jan 2011
Location: Some hole
Posts: 2,783
You are being ironic, right? What 'industry leading' business class seat? The angled lie flat 'slide' seat? or the 'coffin seat'?! CX only started to lead in JCL seats was with the cirrus reverse herringbone from about 2012 (irc). Long after TT left. Also, Chu has 'overseen' new routes to LGW, MAD, BCN, BOS etc etc in recent years. hardly a measure of string leadership.