Aus106080

I do not know If cx will suffer loss for high Business and Cargo loading with 50% LF in economy.
However, if you notice the published figures, CX enjoys quite high loading at around 85% which is higher than most of the non-LCC.
It seems to me that CX management emphasize loading too.

fakecd

why focus on loading. yield matters...

dropping price and increasing seats doesnt seem to affect yield...

HarbourGent

You are, again, conflating separate points. Passengers may be willing to pay a premium to travel on EK or BR but that is likely due to multiple factors. They may tolerate 3-4-3 in their balance of considerations but I doubt that they are paying a higher price for it, more likely for the better food, EK network and so on.

Kachjc

yeah because CX has a higher % of premium seats
but in the last 2 years has had to subsidize J fares ( you may deny it but all their yield comments over 2016-17 indicate that)
but in 2018 they have not had to and when they do not need to they do not need to depress Y fares- so changing to 3-4-3 just means greater profits

Tony Tyler used to keep saying it- if cargo and premium does well- their pressure to fill the economy cabins does not exist
CX is the worlds 4th largest Cargo airline....

CX's revenue mix is a quite unique really.

why is this hard to understand?!-
When there is greater demand , there is no need to price yourself UNDER the market price
3-4-3 was never about CX reducing fares...

People love EK's service and most here keep boasting about AA/EVA etc

Kachjc

which then goes to show that most passengers either don't care about 3-4-3 or prefer 3-4-3
Passengers have not REWARDED CX for being 3-3-3 for the 10 years it had 3-3-3
if it had AC would not be flying daily to Vancouver
CX would have pummeled NZ to auckland
etc
but passengers prefer being squashed or don't care.

percysmith

In both cases it took HX to bring fares down. Oh BTW they fly A332s <-- I don't think fares are correlated with seat width no matter what you claim.

Kachjc

they are not
which was my point
Just because CX is 3-4-3 don't think fares will drop
When CX was 3-3-3 people were paying to fly AC /EK/EVA at a higher price.

i have seen the same CX specials long before HX came around....
and HX has failed to take away market share from CX- they are even cutting frequencies to Auckland

percysmith

So the low fares post is just schizophrenia right?

Kachjc

There is thing called a market
It generally follow a sine curve but always goes higher

When the market is in the trough
CX will be able to offer lower fares than it ever has.... and compete with your beloved LCC's that provide the superior service you keep boasting about!

Customers have said that 3-4-3 does not matter and prefer it- the fact that most airlines are 3-4-3 clearly shows customer preference- if customers truly preferred 3-3-3 those airlines would not be rewarded with purchases- so the difference does not matter. THE POD IS not significant

This makes it possible for both statements to be true.

And yes
Markets are Schizophrenic!

percysmith

Kachjc

no I referred to something even simpler
the business cycle- its not a sine curve but its close and since you could not understand demand and supply
and yes there have been multiple threads , and in fact your constant gripe is why CX is not more like JQ

the only schizophrenic here is you
expecting airlines to reduce prices when demand is soaring....
hilarious

it may come as a shock to you the general public would chose CX any day over VA/BA and as AKL has shown HX , CX has no need to undercut them

percysmith

Last time we had a memorable trough (2003 SARS)
CX simply cut flights, not prices.

That's what market participants with significant market power do.

Why are yields still falling?

Kachjc

if you look at the latest report it is not

Why is your beloved HX cutting flights? Why do they need to sell tickets at half the price of CX- they can barely fill their planes on long haul even though it is half the price

Yes 2003 was an ECONOMIC trough... that totally happened
I believe in 2003 CX had just over 30 % market share at HKG- so much for market power.
What would you do during an EPIDEMIC?!!

hilarious
if CX was OVER PRICED it would have never gained this supposed market power.

but I am only willing to play within the rules of the market.

In fact if CX has the market power you speak off its yields would not have been down 2015-17

sxc

Okay I think we’ve had enough of this to and fro. It’s not adding much to the discussion about 10 abreast seating. Let’s move on now.

Thanks
sxc
Cathay Pacific Moderator

triplefives

The 8-abreast 787 with JL is very nice