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-   -   Wishlist for Hong Kong Express development after Cathay Pacific's acquisition (https://www.flyertalk.com/forum/cathay-pacific-cathay/1979544-wishlist-hong-kong-express-development-after-cathay-pacifics-acquisition.html)

derek2010 Jul 22, 2019 1:48 am

Wishlist for Hong Kong Express development after Cathay Pacific's acquisition
 
How should UO's resources to be integrated with CX, KA existing resources?
1. Codesharing with UO for some of the CX and KA flights.
2. sponsoring UO to enter Oneworld as Oneworld Connect member for Club Points accrual on UO's certain fares like U-Biz.
3. Integrate Reward-U scheme into Asia Miles <-- Done
4. Currently UO's U-Biz fare allows entering HX's Club Bauhinia (紫荊堂), can change that lounge access for entering Cathay Pacific's Business Lounges (The Wing J, The Pier J, The Bridge, The Deck) / Pay a substantial amount to Enter Cathay Pacific's First Lounges (The Wing F, The Pier F).
5. Allow seat selection for Free for MPC Members of certain Level, say Gold members.
6. transfer some A330 to UO for operating some high pax routes like NRT, HND, NGO, KIX, FUK.

TomYoung Jul 22, 2019 2:14 am

Paint Swire flag on UO planes.

Chatter Jul 22, 2019 3:27 am

I don't think CX needs to give the incentives OP suggested to lure more customers to UO as they are targeting different customer groups, otherwise there will be heavy cannibalization, which defeats the whole M&A purpose. UO is competing mainly with MM, GK, BX, 7C and LJ on trunk routes to Japan and Korea, customers flying on these airlines are very price sensitive, and so giving them slightly more goodies could do the job nice and well.

My thoughts:
1. Codesharing with UO for some of the CX and KA flights. <-- Probably only routes not operated by CX and KA)
2. sponsoring UO to enter Oneworld as Oneworld Connect member for Club Points accrual on UO's certain fares like U-Biz. <--Super unlikely as LCC isn't designed for this biz model)
3. Integrate Reward-U scheme into Asia Miles <-- Done
4. Currently UO's U-Biz fare allows entering HX's Club Bauhinia (紫荊堂), can change that lounge access for entering Cathay Pacific's Business Lounges (The Wing J, The Pier J, The Bridge, The Deck) / Pay a substantial amount to Enter Cathay Pacific's First Lounges (The Wing F, The Pier F). <-- the fare will become non-competitive as CX will definitely build in a high price for lounge access. CX has tendency to keep its bar high for lounge admittance. HX is different story, they just want cash flow of any amount.
5. Allow seat selection for Free for MPC Members of certain Level, say Gold members. <-- That's another question of potential cannibalization. UO as an independent brand doesn't want to lose this revenue either
6. transfer some A330 to UO for operating some high pax routes like NRT, HND, NGO, KIX, FUK. <-- Possible given the landing slot constraint in HKG

My evil thought is whether CX will swap its NRT slots for UO's HND slots. UO's slots are the intrinsic value of the price CX paid.

My other question is whether UO will continue to have majority of its departure out of MFC, a HX (HNA) territory never been touched by CX.

Isochronous Jul 22, 2019 5:20 am


Originally Posted by Chatter (Post 31328794)
I don't think CX needs to give the incentives OP suggested to lure more customers to UO as they are targeting different customer groups, otherwise there will be heavy cannibalization, which defeats the whole M&A purpose. UO is competing mainly with MM, GK, BX, 7C and LJ on trunk routes to Japan and Korea, customers flying on these airlines are very price sensitive, and so giving them slightly more goodies could do the job nice and well.

My thoughts:
1. Codesharing with UO for some of the CX and KA flights. <-- Probably only routes not operated by CX and KA)
2. sponsoring UO to enter Oneworld as Oneworld Connect member for Club Points accrual on UO's certain fares like U-Biz. <--Super unlikely as LCC isn't designed for this biz model)
3. Integrate Reward-U scheme into Asia Miles <-- Done
4. Currently UO's U-Biz fare allows entering HX's Club Bauhinia (紫荊堂), can change that lounge access for entering Cathay Pacific's Business Lounges (The Wing J, The Pier J, The Bridge, The Deck) / Pay a substantial amount to Enter Cathay Pacific's First Lounges (The Wing F, The Pier F). <-- the fare will become non-competitive as CX will definitely build in a high price for lounge access. CX has tendency to keep its bar high for lounge admittance. HX is different story, they just want cash flow of any amount.
5. Allow seat selection for Free for MPC Members of certain Level, say Gold members. <-- That's another question of potential cannibalization. UO as an independent brand doesn't want to lose this revenue either
6. transfer some A330 to UO for operating some high pax routes like NRT, HND, NGO, KIX, FUK. <-- Possible given the landing slot constraint in HKG

My evil thought is whether CX will swap its NRT slots for UO's HND slots. UO's slots are the intrinsic value of the price CX paid.

The last thing we need is UO lice in the J lounge. CX would need to re-open the Cabin to deal with increased traffic.


My other question is whether UO will continue to have majority of its departure out of MFC, a HX (HNA) territory never been touched by CX.
When did HX/UO start flying to Lesotho?

flubber Jul 22, 2019 6:26 am


Originally Posted by Isochronous (Post 31328975)
The last thing we need is UO lice in the J lounge. CX would need to re-open the Cabin to deal with increased traffic.

This is funny, but a little harsh LOL

ernestnywang Jul 22, 2019 7:17 am


Originally Posted by Isochronous (Post 31328975)
When did HX/UO start flying to Lesotho?

I believe @Chatter is referring to the MidField Concourse of HKG.

Chromie25 Jul 22, 2019 9:43 am


Originally Posted by Chatter (Post 31328794)

My evil thought is whether CX will swap its NRT slots for UO's HND slots. UO's slots are the intrinsic value of the price CX paid.

Speaking of evil thoughts if I was a shareholder I would suggest UO turnover all Japan routes into CX and charge CX prices. HK's demand for Japan flights is almost inelastic :p

Metropolitan Airlines Jul 25, 2019 9:46 pm

My wishlist is clear:
Either convert it to an all Business Class airline or wind it up.
We don't need budget airlines in Hong Kong.

pochi Jul 25, 2019 10:52 pm


Originally Posted by Chatter (Post 31328794)
I don't think CX needs to give the incentives OP suggested to lure more customers to UO as they are targeting different customer groups, otherwise there will be heavy cannibalization, which defeats the whole M&A purpose. UO is competing mainly with MM, GK, BX, 7C and LJ on trunk routes to Japan and Korea, customers flying on these airlines are very price sensitive, and so giving them slightly more goodies could do the job nice and well.

My thoughts:
1. Codesharing with UO for some of the CX and KA flights. <-- Probably only routes not operated by CX and KA)
2. sponsoring UO to enter Oneworld as Oneworld Connect member for Club Points accrual on UO's certain fares like U-Biz. <--Super unlikely as LCC isn't designed for this biz model)
3. Integrate Reward-U scheme into Asia Miles <-- Done
4. Currently UO's U-Biz fare allows entering HX's Club Bauhinia (紫荊堂), can change that lounge access for entering Cathay Pacific's Business Lounges (The Wing J, The Pier J, The Bridge, The Deck) / Pay a substantial amount to Enter Cathay Pacific's First Lounges (The Wing F, The Pier F). <-- the fare will become non-competitive as CX will definitely build in a high price for lounge access. CX has tendency to keep its bar high for lounge admittance. HX is different story, they just want cash flow of any amount.
5. Allow seat selection for Free for MPC Members of certain Level, say Gold members. <-- That's another question of potential cannibalization. UO as an independent brand doesn't want to lose this revenue either
6. transfer some A330 to UO for operating some high pax routes like NRT, HND, NGO, KIX, FUK. <-- Possible given the landing slot constraint in HKG

My evil thought is whether CX will swap its NRT slots for UO's HND slots. UO's slots are the intrinsic value of the price CX paid.

My other question is whether UO will continue to have majority of its departure out of MFC, a HX (HNA) territory never been touched by CX.

1. Codesharing with UO for some of the CX and KA flights. <-- Probably only routes not operated by CX and KA)
I think they can do a code-share between UO&CX. Frequency can help attracting O&D customer.

2. sponsoring UO to enter Oneworld as Oneworld Connect member for Club Points accrual on UO's certain fares like U-Biz. <--Super unlikely as LCC isn't designed for this biz model)
UO can be strong on doing Taiwan/Japan connection flight to feed. As I remember Iberia Express or Air Nostrum is also an LCC.

6. transfer some A330 to UO for operating some high pax routes like NRT, HND, NGO, KIX, FUK.
new train up required. See if CX would have such act.

My evil thought is whether CX will swap its NRT slots for UO's HND slots. UO's slots are the intrinsic value of the price CX paid.
(in UO624&625 + KA396&397/1 speaking)
HND red eye slot is still open for to any carrier. HND got no 0700-2200 slot left.
CX can always swtch 524 to HND but I think CX524 is more for connecting passenger to the US.

CS300 Jul 26, 2019 2:47 am

My guess is probably no MPO benefits when flying UO.

As a reference, SQ allows mileage accrual/redemption but nothing else for their elites on Scoot.

ajeleonard Jul 26, 2019 3:10 am


Originally Posted by Metropolitan Airlines (Post 31343623)
My wishlist is clear:
Either convert it to an all Business Class airline or wind it up.
We don't need budget airlines in Hong Kong.

Even if you don't personally want to fly budget airlines, their existence in a market keeps the fares on all other airlines in check

Realistically HK Express's relationship with CX is likely to be similar to Jetstar/Vueling/Eurowings relationship with their parent's full service airlines - some minimal recognition for elites in the home program when purchasing certain fare classes/codeshares but nothing for alliances and nothing on the cheapest tickets

percysmith Jul 26, 2019 3:14 am


Originally Posted by ajeleonard (Post 31344210)
Realistically HK Express's relationship with CX is likely to be similar to Jetstar/Vueling/Eurowings relationship with their parent's full service airlines - some minimal recognition for elites in the home program when purchasing certain fare classes/codeshares but nothing for alliances and nothing on the cheapest tickets

Or AC and Air Canada Rouge - same route, same price, reduced service.

ernestnywang Jul 26, 2019 12:28 pm


Originally Posted by ajeleonard (Post 31344210)
Realistically HK Express's relationship with CX is likely to be similar to Jetstar/Vueling/Eurowings relationship with their parent's full service airlines - some minimal recognition for elites in the home program when purchasing certain fare classes/codeshares but nothing for alliances and nothing on the cheapest tickets

This would be a lot better (and what I hope) than the SQ/TR model.

boybi Oct 23, 2023 7:43 pm

So what are the cross airline benefits available for passengers flying with CX and UO? Will Cathay Silver and up have lounge access when flying with UO?


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