KA to launch DVO (Davao, the Philippines) & KNO (Medan, Indonesia)
May 2, 2018, 7:53 pm
#17
Join Date: Apr 2014
Location: TPE, CGK
Programs: GFF Plat, CX DM, SQ TPPS, AS 75K
Posts: 199
May 3, 2018, 2:00 am
#19
Original Poster
Join Date: Sep 2005
Location: TPE / HSZ
Programs: CX GO (=SPH), IHG Diamond Amb, Hertz 5*, Accor, Hilton, National
Posts: 6,437
May 3, 2018, 2:59 am
#20
Join Date: May 2016
Posts: 23
I only implied that with 3x per week on A320 by KA the risk is so much lower than to SEA/IST/MUC which requires widebody (CX) and there is already competitor DL/TK/LH on each routes. It's more like they testing a new market that growing and without non stop competition. If they care so much about revenue, they won't even bother to launch 3x weekly with just A320.
May 3, 2018, 3:03 am
#21
Join Date: Sep 2011
Location: MNL
Programs: CX MPO DM, Le Club Accor Platinum, World of Hyatt Explorist
Posts: 2,284
I think CX's strategy is to identify potential markets with no direct service to HKG hence they go into a new destination unchallenged....Makes good sense.
May 3, 2018, 5:07 am
#22
Join Date: Aug 2011
Posts: 1,421
Medan and Nanning had more revenue potential...
May 3, 2018, 8:03 am
#23
Join Date: Jun 2016
Location: Hong Kong
Programs: Lowly CX & IHG
Posts: 382
It could be, I don't know... but long haul need more planes to operate (it's less than a A320-day to open DVO+KNO but you need 2-3 large birds for daily long haul), besides it seems fuel economy matters more too, so those kinda need to wait for A350 deliveries to start
May 3, 2018, 9:14 am
#24
Join Date: Nov 2017
Location: HKG
Programs: CX, BA
Posts: 69
I believe price is one of the main issue - CTS is highly tourist-driven and HX/UO has been trying very hard in recent years to build their brandname in HK. Given that more people in HK (especially the younger generation) now are price sensitive rather than being loyal, I'm not surprised HX has a higher frequency to CTS. Same goes for OKA too (and probably DPS to certain extent)
For MUC and VIE, I think majority of the LH/OS passengers are on connecting flights and not much premium load again - or else CX would not have pulled out of DUS route as well.
For MUC and VIE, I think majority of the LH/OS passengers are on connecting flights and not much premium load again - or else CX would not have pulled out of DUS route as well.
Not having daily flights sometimes is really a big issue.
May 3, 2018, 11:32 am
#25
Join Date: Oct 2016
Posts: 291
Scheduling has been one of the strengths of CX. However, as you have mentioned, HX offers more flights than CX to several destinations, such as OKA, CTS, DPS and so on. Then, CX is losing its competitiveness again. Not only do lower prices swing customers to its competitors, scheduling does too.
Not having daily flights sometimes is really a big issue.
Not having daily flights sometimes is really a big issue.
And for leisure oriented travellers, they care for fare more over schedule.
May 3, 2018, 8:31 pm
#26
Join Date: Sep 2011
Location: MNL
Programs: CX MPO DM, Le Club Accor Platinum, World of Hyatt Explorist
Posts: 2,284
May 3, 2018, 10:14 pm
#27
Join Date: Dec 2001
Location: China
Posts: 1,552
May 3, 2018, 10:55 pm
#28
Join Date: Aug 2011
Posts: 1,421
because if CX follows this route of no new routes if someone else operates it they will have to eventually shut down the entire operation....
silly strategy
May 4, 2018, 12:30 am
#29
Join Date: Sep 2011
Location: MNL
Programs: CX MPO DM, Le Club Accor Platinum, World of Hyatt Explorist
Posts: 2,284
I didn't say CX will eventually shut down routes if completion comes us. They invest in developing destinations but at the same time I think being a pioneer also helps in securing their position in that particular market.
May 4, 2018, 2:03 am
#30
Join Date: Nov 2017
Location: HKG
Programs: CX, BA
Posts: 69
Not all destinations are like Maldives where CX can beat its lower fare competitor, in this case HX, easily. Just some extra information, HX cancelled all flights to MLE in April and May because she claimed that the travel alerts caused a significant drop in group passenger travel. If I remember correctly, the previous news uploaded on HX website, which has gone right now, stated that the cancellations in April had affected eighty something passengers. That is pathetic considering it should be a 3 weekly A330 service.