Ausriver

So maybe CX elites can use lounges when flying HK Express?

brunos

What is noteworthy is that CX did not confirm that it was in active discussions regarding Hong Kong Airline (HX).

Chatter

I doubt it. Don't think Scoot pax can get access to any SQ lounges. Or they can adopt the Qantas Club business model

oldchinahand

Slosar is the outgoing Chairman and I believe will be gone this year and perhaps that is a good thing having in the past years made some questionable calls i.e. the past CEO.
Under his stewardship Cathay stagnated and many service levels declined. Perhaps accountants should not run airlines?

Cathay has for the past 10 years or so looked at the pros and cons of establishing a low cost airline and clearly preferred to position itself (and Dragon) as a full service airline group that can also fight with low cost carriers when it needs to.
That position may have changed and if they were to take a controlling equity interest in HK Express I believe they would seek to acquire them 100% long term as to fiddle at the edges with a minority shareholding would seem to make little commercial sense.
Cathay unlike Singapore Airlines operates on separate Airline Operators licences for Cathay and Dragon i.e separate entities. With any HK Express acciquision Cathey would have a third valuable Air Operators Licence. as well as the valuable slots.
There are substantial advantages between starting a low cost carrier against buying one already up and running at perhaps a knock down price.

zeltergiset

Anyone know if HK express is profitable?

Doubt CX are only interested in slots - the lower salary base will be an attraction, for example.

oldchinahand

'Anyone know if HK express is profitable?"

It is not - large losses due mostly to catastrophic management.
Being a private company little info is in the public domain though.

brunos

Does that mean that you have private inside information?

bhyq

brunos

I wonder what would happen to UO license if Australians buy it.

zeltergiset

Profitable in 2015 and first half of 2016 apparently - https://static.hkexpress.com/media/1...-july-en_1.pdf

A cursory search didn't reveal anything more recent.

helvetic

I certainly hope this doesn't happen.

Cathay Dragon is a full service airline with very good service. They have good business class, and some of the best service in economy I've ever had. It's just as good as CX.

If CX acquires HK Express, I could see them replacing KA routes with UO, which would be a huge downgrade.

Chromie25

What salary are you referring to? My understanding is that at least for the FA, salary is comparable and UO flights are actually quite pleasant to work with - passengers have to pay extra for almost anything (and thus never request things) and complaining gets them nowhere.

Chromie25

Will HKers protest on the street/HKG when all these flights become KA/CX operated and priced at HKD 4k?

Jackolee

Like it or not, I found KA's service is highly inconsistent. Service has been minimal in recent years, particularly on popular routes e.g. KUL and PVG (crew members always claim on the online platforms that they are too busy on these popular short-haul flights). I personally don't mind travelling to Xiaman, Danang, Haikou alike with UO-alike service - I don't mind skipping that Chinese cookie and a cup of water with a lower fare. But there should be options on the flight, like Club Points-accountable for higher classes. You may choose between cost and membership.

QRC3288

Great point. KA was excellent years ago. But as it has been "harmonized" with CX, it is really nothing special to fly at all. J class is between bland and bad. The standardization of new RBC doesn't help, but the real nail in the coffin for me were the catering downgrades these last few years. CX is really a disgrace at catering in premium classes (at least, for prestigious airlines), and KA totally suffered for it.

I am just frequently reminded how much the soft product, and catering in particular (not just quality, but quality + enough meals loaded + significant variety) matter when I fly on KA. I could overlook the awful RBC seat if the food were good. Or maybe the inverse if the seat were nice. But none of it is.

I really thought highly of KA catering years back. They would especially go over the top to PEK and PVG. It was a no brainier to pick KA on those routes and leave CX to all the partner redeemers who didn't know any better. Not anymore.