Cathay Pacific eyes ‘structural change’
#16
Join Date: Dec 2008
Location: PEK, AUS, WAS, HKG
Programs: CX Gold
Posts: 1,122
#18
Join Date: Sep 2013
Location: Singapore
Programs: MPC, KF, Accor, SPG, HH
Posts: 902
it is an intrinsic game. Some times it is not just dollars and cents. Branding and strategic importance places a part as well. Sofitel and Novotel is same same but different.
#19
Join Date: Dec 2001
Location: China
Posts: 1,552
post COVID, the governments will be flexible to get flights started again. And I think most of the places in China will go to UO, not CX.
#20
Join Date: Aug 2007
Location: Sydney, Australia
Posts: 1,844
2017 was restructuring for a more efficient corporate structure
2020 is about downsizing in anticipation of reduced demand post-Covid19, which may include fleet size, frequency/destination and and operations-related staff. None of these were the focus of the restructuring in 2017.
CEOs of AA/UA/DL, IAG and LH stated that their airlines will be much smaller than what they were.
2020 is about downsizing in anticipation of reduced demand post-Covid19, which may include fleet size, frequency/destination and and operations-related staff. None of these were the focus of the restructuring in 2017.
CEOs of AA/UA/DL, IAG and LH stated that their airlines will be much smaller than what they were.
Even when things are back to whatever passes for normal, which most experts and pundits expect to be around 2023, it'll likely be a 'new' normal which won't look the same as 2019. In fact, a few years in and certainly by the end of the 2020s, I think we'll look back on the 20teens as a bit of 'peak aviation' in terms of routes and frequencies, PaxEx perks such as A380s with cocktail bars and lounges and showers.
So, yeah, this CX restructure is totally geared around informed speculation (no other way to put it) about the shape of travel in the COVID19 and post-COVID19 era.
#21
Join Date: Jun 2018
Posts: 415
1. KA has gained more consumer awareness.
2. Due to traffic control measures and significant delay problems in Mainland China, CX has even considered to transfer its PEK/PVG flights back to KA to avoid domino effect on its fleet. Their current solution is to use 'dedicated fleet' to fly to China. Delay could cause more problems for a LCC.
3. Again, if you look at attractiveness of UO, it is in Japan. It is the leisure travellers based in Hong Kong.
#22
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Hong Kong, France
Programs: FB , BA Gold
Posts: 15,555
It seems to me that consolidating the brands would not achieve much but will be a painful process (different employment contracts, different landing rights, and different planes).
However , CX is a purely international airline (no domestic flights) and badly hurt by countries travel restrictions. My guess is that it will operate at a few percent of pax traffic for the coming months and won't be able to reach 50% for many, many months probably years. That calls for layoffs and severe restructuring of its operations and HQ.
The future could be a bit more rosy, but not much in the coming two years.
However , CX is a purely international airline (no domestic flights) and badly hurt by countries travel restrictions. My guess is that it will operate at a few percent of pax traffic for the coming months and won't be able to reach 50% for many, many months probably years. That calls for layoffs and severe restructuring of its operations and HQ.
The future could be a bit more rosy, but not much in the coming two years.
#24
Join Date: Jan 2006
Programs: AAdvantage Asia Miles Air China
Posts: 870
Bit late Frontier already announced one US$89. Admitedly after outcry this was dropped
#25
Join Date: Dec 2008
Location: PEK, AUS, WAS, HKG
Programs: CX Gold
Posts: 1,122
Just saw a report on hk01.com: CX is rumored to combine Cathay Dragon and HK Express into Cathay Express. (The article is in Chinese though). Interesting development! In short, the article suggests that the Cathay Dragon and HK Express brands will go away, and that there is only Cathay Pacific and Cathay Express moving forward. It is really sad to lose Cathay Dragon if the rumor turns out to be true.
#26
Join Date: Jun 2015
Programs: MR Platinum
Posts: 80
Not likely.
1. KA has gained more consumer awareness.
2. Due to traffic control measures and significant delay problems in Mainland China, CX has even considered to transfer its PEK/PVG flights back to KA to avoid domino effect on its fleet. Their current solution is to use 'dedicated fleet' to fly to China. Delay could cause more problems for a LCC.
3. Again, if you look at attractiveness of UO, it is in Japan. It is the leisure travellers based in Hong Kong.
1. KA has gained more consumer awareness.
2. Due to traffic control measures and significant delay problems in Mainland China, CX has even considered to transfer its PEK/PVG flights back to KA to avoid domino effect on its fleet. Their current solution is to use 'dedicated fleet' to fly to China. Delay could cause more problems for a LCC.
3. Again, if you look at attractiveness of UO, it is in Japan. It is the leisure travellers based in Hong Kong.