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Cathay Pacific eyes ‘structural change’

Cathay Pacific eyes ‘structural change’

Old May 6, 20, 8:18 pm
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sxc
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Cathay Pacific eyes ‘structural change’

Looks like Cathay is preparing to downsize for the near future. Or use this crisis as an opportunity to finally break the pilots’ cost structure.

https://www.scmp.com/news/hong-kong/...hange-see-hong
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Old May 6, 20, 8:34 pm
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Old May 6, 20, 9:49 pm
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Bye bye KA I reckon. CX as ‘full service’, UO as LCC.
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Old May 6, 20, 11:02 pm
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This would be following what SQ has does - absorbing MI into their corporate structure entirely and keeping Scoot at LCC.
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Old May 6, 20, 11:15 pm
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Originally Posted by peasant View Post
Bye bye KA I reckon. CX as ‘full service’, UO as LCC.
My exact first thought too – one 'Cathay Pacific' brand for full service, with HK Express for the cheap seats.
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Old May 6, 20, 11:20 pm
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Originally Posted by sxc View Post
Looks like Cathay is preparing to downsize for the near future. Or use this crisis as an opportunity to finally break the pilots’ cost structure.

https://www.scmp.com/news/hong-kong/...hange-see-hong
Pilots could dictate their conditions given supply and demands for pilots. The situation is the opposite now. Lots of pilots will be without jobs worldwide. FA can easily move to some other jobs, even if a bit less attractive. Pilots cannot.
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Old May 6, 20, 11:30 pm
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What does it change if there is no KA anymore? I think the reason for it to exist are inherited traffic rights. But it seems like the KA structure otherwise is very close to CX and does not have much overhead?
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Old May 6, 20, 11:51 pm
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I think KA will stay, as it is the more renowned brand in mainland China than. And it seems that CX group is using KA as “another” airline to occupy some traffic rights.
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Old May 6, 20, 11:54 pm
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I believe KA has some rights that they won’t want to lose by giving up their AOC. KA has a lower cost structure than CX. If anything I see routes being handed down the line. From CX to KA to UO.

But overall the structural change is going to be less frequencies for at least the next two years. And probably some destinations cut.
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Old May 7, 20, 2:38 am
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Didn't CX just have a rather major structural change in terms of higher/upper management a couple years ago? Aside from just cutting a %age of staff I don't really see how they could cut costs. KA would probably still remain because of its brand prominence in the mainland and a few traffic rights. The only routes I'd imagine them cutting are IAD, DUB, possibly BRU. I guess pilot pay structure as mentioned earlier would be one of the few things that can be changed.
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Old May 7, 20, 3:37 am
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Originally Posted by sxc View Post
I believe KA has some rights that they won’t want to lose by giving up their AOC. KA has a lower cost structure than CX. If anything I see routes being handed down the line. From CX to KA to UO.

But overall the structural change is going to be less frequencies for at least the next two years. And probably some destinations cut.
but with HX on the ropes, the risk that the KA traffic rights don’t get picked up by CX or UO but by HX is minimal.
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Old May 7, 20, 4:55 am
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i think its more about how they position J, W, and Y also. (forget F)

J-W divide is too far now, afforded only by corp J demand they managed to take for granted for so long at expense of those below. Now that segment is gone, so in order to increase yield, they need to drive more from Y to W and W to J, meaning less product differentiation. a lot has been emphasized so W was Y+ rather than J-, i suspect W will lean towards J- to capture corp/affluent leisure segments, and J downsized to become what F used to be like.


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
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Old May 7, 20, 5:46 am
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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.
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Last edited by CS300; May 7, 20 at 6:22 am
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Old May 7, 20, 6:30 am
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Originally Posted by fakecd View Post
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
It already exists - First class ticket pricing reflects it.
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Old May 7, 20, 6:48 am
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Originally Posted by brunos View Post
Pilots could dictate their conditions given supply and demands for pilots. The situation is the opposite now. Lots of pilots will be without jobs worldwide. FA can easily move to some other jobs, even if a bit less attractive. Pilots cannot.
why not?
https://news.sky.com/story/coronavir...river-11969256
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