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Wishlist for Hong Kong Express development after Cathay Pacific's acquisition

Wishlist for Hong Kong Express development after Cathay Pacific's acquisition

Old Jul 22, 19, 1:48 am
  #1  
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Join Date: Jun 2010
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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.
derek2010 is offline  
Old Jul 22, 19, 2:14 am
  #2  
 
Join Date: Aug 2016
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Paint Swire flag on UO planes.
TomYoung is offline  
Old Jul 22, 19, 3:27 am
  #3  
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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.
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Chatter is offline  
Old Jul 22, 19, 5:20 am
  #4  
 
Join Date: Nov 2012
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Originally Posted by Chatter View Post
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?
Isochronous is offline  
Old Jul 22, 19, 6:26 am
  #5  
 
Join Date: Mar 2006
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Originally Posted by Isochronous View Post
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
flubber is offline  
Old Jul 22, 19, 7:17 am
  #6  
 
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Originally Posted by Isochronous View Post
When did HX/UO start flying to Lesotho?
I believe @Chatter is referring to the MidField Concourse of HKG.
ernestnywang is offline  
Old Jul 22, 19, 9:43 am
  #7  
 
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Originally Posted by Chatter View Post

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
flubber and Isochronous like this.
Chromie25 is offline  
Old Jul 25, 19, 9:46 pm
  #8  
 
Join Date: Jan 2009
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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.
Metropolitan Airlines is offline  
Old Jul 25, 19, 10:52 pm
  #9  
 
Join Date: Apr 2018
Location: HKG,SIN,CAN
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Originally Posted by Chatter View Post
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.
pochi is offline  
Old Jul 26, 19, 2:47 am
  #10  
 
Join Date: Jun 2015
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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.
CS300 is offline  
Old Jul 26, 19, 3:10 am
  #11  
 
Join Date: Jun 2009
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Originally Posted by Metropolitan Airlines View Post
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
ajeleonard is offline  
Old Jul 26, 19, 3:14 am
  #12  
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Originally Posted by ajeleonard View Post
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.
percysmith is offline  
Old Jul 26, 19, 12:28 pm
  #13  
 
Join Date: Sep 2005
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Originally Posted by ajeleonard View Post
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.
ernestnywang is offline  

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