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Cathay Pacific eyes ‘structural change’

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Cathay Pacific eyes ‘structural change’

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Old May 7, 2020, 7:16 am
  #16  
 
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Originally Posted by peasant
Bye bye KA I reckon. CX as ‘full service’, UO as LCC.
I don't think so, especially to China. Currently CX only has (limited) traffic rights to PEK and PVG, while KA can fly to many places in China. I doubt CX can suddenly convert all KA landing rights to its own.
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Old May 7, 2020, 9:58 am
  #17  
 
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CX's pilot and crew cost is higher than KA, i guess they would choose to shrink CX more than to shrink KA....
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Old May 7, 2020, 10:21 am
  #18  
 
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Originally Posted by ctb213ctb213
CX's pilot and crew cost is higher than KA, i guess they would choose to shrink CX more than to shrink KA....
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.
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Old May 7, 2020, 5:27 pm
  #19  
 
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Originally Posted by lixiaojuventus
I don't think so, especially to China. Currently CX only has (limited) traffic rights to PEK and PVG, while KA can fly to many places in China. I doubt CX can suddenly convert all KA landing rights to its own.
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.
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Old May 7, 2020, 7:04 pm
  #20  
 
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Originally Posted by CS300
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.
You can add QF to that list, Alan Joyce remarked earlier this week that the Qantas of 2021-2022 will be very different to the Qantas of 2019. Airlines around the world are 'right-sizing' to reduced fleets (combo of early retirements of older jets and a push-back on deliveries of new ones) with a focus on smaller jets, as well as smaller staff headcount, and because the travel market will have a staged recovery rather than immediately springing back to The Way Things Were, it's also a rethink of routes and frequencies.

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.
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Old May 7, 2020, 7:07 pm
  #21  
 
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Originally Posted by peasant
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.
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.
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Old May 7, 2020, 9:06 pm
  #22  
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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.
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Old May 7, 2020, 9:35 pm
  #23  
 
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see quote below
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Old May 7, 2020, 9:36 pm
  #24  
 
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Originally Posted by fakecd
and get this, you heard it here first. There will be "Social Distance Surcharge"... subject to severity of pandamic condition.... matter of fact i am so certain of it, so I will Trademark the term
Bit late Frontier already announced one US$89. Admitedly after outcry this was dropped
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Old May 8, 2020, 1:37 am
  #25  
 
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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.
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Old May 8, 2020, 1:47 am
  #26  
 
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Originally Posted by Reply1984
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. I would argue that the "Cathay Pacific" brand gained more than the "Dragonair" brand. After the rebranding of "Dragonair" (no Cathay name in the brand prior to 2016) to "Cathay Dragon", the Chinese network is serviced by KA aircraft with "Cathay" painted on the side. You will never see a "Cathay Dragon" aircraft service a destination beyond Asia.
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Old May 8, 2020, 2:06 am
  #27  
 
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if true, 1700 briefing
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Old May 8, 2020, 5:51 am
  #28  
 
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Originally Posted by gear down
if true, 1700 briefing
Anyone hear about this yet?
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Old May 8, 2020, 8:46 am
  #29  
sxc
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Appears it was just a delay of the AGM
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Old May 8, 2020, 9:34 am
  #30  
 
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CX as we know it is finished.

KA becomes the full service carrier (with its lower cost base than CX) and UO the LCC in leisure markers across Asia.
yohy is offline  


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