Cathay Pacific eyes ‘structural change’
May 6, 2020, 8:18 pm
#1
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Cathay Pacific eyes ‘structural change’
Looks like Cathay is preparing to downsize for the near future. Or use this crisis as an opportunity to finally break the pilots’ cost structure.
https://www.scmp.com/news/hong-kong/...hange-see-hong
https://www.scmp.com/news/hong-kong/...hange-see-hong
May 6, 2020, 11:20 pm
#6
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Looks like Cathay is preparing to downsize for the near future. Or use this crisis as an opportunity to finally break the pilots’ cost structure.
https://www.scmp.com/news/hong-kong/...hange-see-hong
https://www.scmp.com/news/hong-kong/...hange-see-hong
May 6, 2020, 11:54 pm
#9
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I believe KA has some rights that they won’t want to lose by giving up their AOC. KA has a lower cost structure than CX. If anything I see routes being handed down the line. From CX to KA to UO.
But overall the structural change is going to be less frequencies for at least the next two years. And probably some destinations cut.
But overall the structural change is going to be less frequencies for at least the next two years. And probably some destinations cut.
May 7, 2020, 2:38 am
#10
Join Date: Mar 2017
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Didn't CX just have a rather major structural change in terms of higher/upper management a couple years ago? Aside from just cutting a %age of staff I don't really see how they could cut costs. KA would probably still remain because of its brand prominence in the mainland and a few traffic rights. The only routes I'd imagine them cutting are IAD, DUB, possibly BRU. I guess pilot pay structure as mentioned earlier would be one of the few things that can be changed.
May 7, 2020, 3:37 am
#11
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I believe KA has some rights that they won’t want to lose by giving up their AOC. KA has a lower cost structure than CX. If anything I see routes being handed down the line. From CX to KA to UO.
But overall the structural change is going to be less frequencies for at least the next two years. And probably some destinations cut.
But overall the structural change is going to be less frequencies for at least the next two years. And probably some destinations cut.
May 7, 2020, 4:55 am
#12
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i think its more about how they position J, W, and Y also. (forget F)
J-W divide is too far now, afforded only by corp J demand they managed to take for granted for so long at expense of those below. Now that segment is gone, so in order to increase yield, they need to drive more from Y to W and W to J, meaning less product differentiation. a lot has been emphasized so W was Y+ rather than J-, i suspect W will lean towards J- to capture corp/affluent leisure segments, and J downsized to become what F used to be like.
and get this, you heard it here first. There will be "Social Distance Surcharge"... subject to severity of pandamic condition.... matter of fact i am so certain of it, so I will Trademark the term
J-W divide is too far now, afforded only by corp J demand they managed to take for granted for so long at expense of those below. Now that segment is gone, so in order to increase yield, they need to drive more from Y to W and W to J, meaning less product differentiation. a lot has been emphasized so W was Y+ rather than J-, i suspect W will lean towards J- to capture corp/affluent leisure segments, and J downsized to become what F used to be like.
and get this, you heard it here first. There will be "Social Distance Surcharge"... subject to severity of pandamic condition.... matter of fact i am so certain of it, so I will Trademark the term
May 7, 2020, 5:46 am
#13
Join Date: Jun 2015
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2017 was restructuring for a more efficient corporate structure
2020 is about downsizing in anticipation of reduced demand post-Covid19, which may include fleet size, frequency/destination and and operations-related staff. None of these were the focus of the restructuring in 2017.
CEOs of AA/UA/DL, IAG and LH stated that their airlines will be much smaller than what they were.
2020 is about downsizing in anticipation of reduced demand post-Covid19, which may include fleet size, frequency/destination and and operations-related staff. None of these were the focus of the restructuring in 2017.
CEOs of AA/UA/DL, IAG and LH stated that their airlines will be much smaller than what they were.
Last edited by CS300; May 7, 2020 at 6:22 am
May 7, 2020, 6:30 am
#14
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May 7, 2020, 6:48 am
#15
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