CX to close KA!
Oct 21, 2020, 8:50 pm
#61
Join Date: Jun 2015
Programs: MR Platinum
Posts: 80
That's not likely to happen when it's CX, HX and UO competing for slots. CX and UO should be able to fetch at least 2/3 of the rights unless CAAC doesn't want to give it to CX due to previous FA actions.
Plus I am unsure if HX is even healthy enough to fly consider CX is already doing so bad in HKG.
Plus I am unsure if HX is even healthy enough to fly consider CX is already doing so bad in HKG.
Route authority and traffic rights are returned to CAD, which will then decide how to reallocate them based upon applications received.
For Cathay, it’s a gamble here whether they will get all they ask for. Given HX’s strained financial situation and reduced fleet prior to COVID-19, is it in any shape to expand?
Oct 21, 2020, 10:37 pm
#62
Join Date: Jan 2017
Programs: BA SL, CX GR, IHG Plat Amb
Posts: 580
It appeared sensible to close KA when CX needed to restructure the company and cut costs drastically and quickly. But now if routes are to be returned and redistributed, I wonder if CX management has considered the risk of losing them especially those to mainland China. CX can’t last if it loses these O&D and transit pax.
And for UO as the substitute, no way! I’d fly other airlines instead.
And for UO as the substitute, no way! I’d fly other airlines instead.
Oct 21, 2020, 11:41 pm
#63
Join Date: May 2007
Programs: UA 1K, Hyatt Globalist
Posts: 5,459
Oct 21, 2020, 11:41 pm
#64
Join Date: Dec 2008
Location: PEK, AUS, WAS, HKG
Programs: CX Gold
Posts: 1,123
It appeared sensible to close KA when CX needed to restructure the company and cut costs drastically and quickly. But now if routes are to be returned and redistributed, I wonder if CX management has considered the risk of losing them especially those to mainland China. CX can’t last if it loses these O&D and transit pax.
And for UO as the substitute, no way! I’d fly other airlines instead.
And for UO as the substitute, no way! I’d fly other airlines instead.
Oct 22, 2020, 12:18 am
#65
Join Date: Oct 2016
Posts: 254
It appeared sensible to close KA when CX needed to restructure the company and cut costs drastically and quickly. But now if routes are to be returned and redistributed, I wonder if CX management has considered the risk of losing them especially those to mainland China. CX can’t last if it loses these O&D and transit pax.
And for UO as the substitute, no way! I’d fly other airlines instead.
And for UO as the substitute, no way! I’d fly other airlines instead.
Oct 22, 2020, 12:41 am
#66
Join Date: Feb 2008
Location: CAN, LAX, TPE
Programs: AA, AS, CI, DL, UA
Posts: 2,898
CAAC is not directly involved here.
Route authority and traffic rights are returned to CAD, which will then decide how to reallocate them based upon applications received.
For Cathay, it’s a gamble here whether they will get all they ask for. Given HX’s strained financial situation and reduced fleet prior to COVID-19, is it in any shape to expand?
Route authority and traffic rights are returned to CAD, which will then decide how to reallocate them based upon applications received.
For Cathay, it’s a gamble here whether they will get all they ask for. Given HX’s strained financial situation and reduced fleet prior to COVID-19, is it in any shape to expand?
With the status quo I think CX took the right step in terms of gambling cause HX's financial situation must be dire. I mean even if HX secure the rights it's unlikely any airline will be running any flights in the coming months (if not years).
Oct 22, 2020, 1:09 am
#67
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,801
I had to parrot Short hair Francis theory repeatedly: "MH is not a dangerous airline. It's MH 777s that are dangerous flights, and all their 777s are gone. If it's Boeing I'm not going!"
Oct 22, 2020, 3:05 am
#68
Join Date: Jan 2017
Programs: BA SL, CX GR, IHG Plat Amb
Posts: 580
With HX in its own trouble and the bay area airline still in the process of getting its operating license, I think CX management considered this is already the best time to do so. Once the bay area airline has started operating, CX will have even higher risk of losing rights than it is now.
For HX, I guess they won't be interested / cannot bid KA's route that they are currently operating? I think those routes with highest stakes are PEK, PVG etc.
Oct 22, 2020, 5:27 am
#69
FlyerTalk Evangelist
Join Date: Nov 2009
Location: Earth. Residency:HKG formerly:YYZ
Programs: CX, DL, Nexus/GE, APEC
Posts: 10,689
Oct 22, 2020, 6:13 am
#70
Join Date: Jun 2018
Posts: 415
The most valuable flight rights owned by KA are PEK, PVG and SHA. 3th/4th freedom to all other Mainland airports are not limited.
But please also notice that these three airports are also slot-constrained. No more new slots will be allocated in PEK and SHA and slots in PVG are highly limited. Normally it is allowed to transfer slots to another airline under the same parent group. It seems no difficultity for CX to get airport slots owned by KA, but HX and Great Bay Airline are not likely to get new slots.
Even if not all the flight rights previously owned by KA are allocated to CX but to HX or Great Bay Airline, since they do not have slots of PEK/PVG/SHA, they still cannot compete with CX, or HKCAD will reject their application since they do not have any new slots in PEK/PVG/SHA.
But please also notice that these three airports are also slot-constrained. No more new slots will be allocated in PEK and SHA and slots in PVG are highly limited. Normally it is allowed to transfer slots to another airline under the same parent group. It seems no difficultity for CX to get airport slots owned by KA, but HX and Great Bay Airline are not likely to get new slots.
Even if not all the flight rights previously owned by KA are allocated to CX but to HX or Great Bay Airline, since they do not have slots of PEK/PVG/SHA, they still cannot compete with CX, or HKCAD will reject their application since they do not have any new slots in PEK/PVG/SHA.
Oct 22, 2020, 8:35 am
#71
Join Date: Jun 2016
Programs: Marriott Titanium, Hilton Diamond, Hyatt Explorist, Marco Polo Gold
Posts: 1,084
To be honest as a C class flyer I'm not that sad. I used to be a KA fan, but since CX take over it has slowly degraded and the year before COVID I would even consider it on part with Chinese airlines (which is not a good thing). Seriously, I have had better experiences in C class on China Eastern, Sichuan, or even Hong Kong Airlines than on KA. In my opinion it's good that KA gets axed now when most of the memories are its glory days. KA was destined to be a cheap-fare airline, and with HK Express there's really no need for them to exist.
Oct 22, 2020, 9:59 am
#72
Join Date: Jun 2016
Location: HKG/YVR/CGO
Programs: CX DM
Posts: 55
To be honest as a C class flyer I'm not that sad. I used to be a KA fan, but since CX take over it has slowly degraded and the year before COVID I would even consider it on part with Chinese airlines (which is not a good thing). Seriously, I have had better experiences in C class on China Eastern, Sichuan, or even Hong Kong Airlines than on KA. In my opinion it's good that KA gets axed now when most of the memories are its glory days. KA was destined to be a cheap-fare airline, and with HK Express there's really no need for them to exist.
On a separate note, as a regular passenger from RGN to YVR relying on KA metal.... I’m in danger...
Oct 22, 2020, 10:21 am
#73
Join Date: Jun 2018
Posts: 415
https://www.scmp.com/news/hong-kong/...pacific-likely
SCMP CX journalist Danny: Cathay Pacific likely to retain axed subsidiary’s routes, sources say, but push for transparency ongoing behind scenes
As for Great Bay Airline founded by Bill Wong:
SCMP CX journalist Danny: Cathay Pacific likely to retain axed subsidiary’s routes, sources say, but push for transparency ongoing behind scenes
Its parent company received assurances from the Hong Kong government and other stakeholders that it would hold on to most of the regional carrier’s traffic rights before making the move to shut it down, multiple sources told the Post.
“It’s not that difficult. Of course, it would be done after completing due process,” one government source said.
“It’s not that difficult. Of course, it would be done after completing due process,” one government source said.
“The management has done a lot of reaching out and engagement. They had to sound out the stakeholders, and the board and shareholders had to approve it. You can see all the preparation work that had to be done so they could make sure [the rights] could be obtained,” a source close to the Cathay Pacific Airways board said.
“But obviously, at the end of the day, you still have to go through the process.”
“But obviously, at the end of the day, you still have to go through the process.”
But a government insider who spoke to the Post did not think Wong’s airline stood much of a chance.
“I don’t see anyone, including the central government, that would really favour Bill Wong,” the source said.
“I don’t see anyone, including the central government, that would really favour Bill Wong,” the source said.
Oct 22, 2020, 10:24 am
#74
Join Date: Aug 2020
Posts: 139
In fact, one of the most common jokes these days is that no one can ever guess HX could outlive KA LOL
Oct 22, 2020, 10:28 am
#75
Join Date: Aug 2020
Posts: 139
That's not likely to happen when it's CX, HX and UO competing for slots. CX and UO should be able to fetch at least 2/3 of the rights unless CAAC doesn't want to give it to CX due to previous FA actions.
Plus I am unsure if HX is even healthy enough to fly consider CX is already doing so bad in HKG.
Plus I am unsure if HX is even healthy enough to fly consider CX is already doing so bad in HKG.