tycosiao

Yeah I thought it was Liu's personal decision too which I felt it was odd given that Southern is in ST too.

FlyerTalker688786

2007, when Mr. Li was MU CEO, had submitted application together with HU.

But CX blocked the deal as MU was seeking financial help from SQ and CX was trying to block Air China to join Star... Later on Mr. Liu comes in and changes the direction of MU.

If CX was not so enthusiasm at blocking Air China in the board room meeting but instead helping MU in joining OneWorld, Mr. Liu would not have a chance in bringing MU to SkyTeam without big financial loses in existing membership...

Kachjc

Yes China Eastern and Cathay have a good relationship
The whole saga at the moment is because the big three joined two alliances instead of one in each.

Also How can you blame cx form blocking Hainan- If hainan wants to join it has to suspend Hong Kong airlines at least

It is like blaming Qantas for not allowing virign australia to join oneworld!!!!!!!

rurouni212

I'm not sure if that's a fair comparison. Hainan wants to join oneworld, virgin australia does not. In Qantas' pretend case, there is nothing to block. I do agree that if Hainan did something with Hong Kong airlines, CX probably wouldn't care if they joined.

moa999

Huh. Air China has the stake in Cathay... that is where the key relationship is.

Agree with that. Although in any event the big three all have common ownership (the government), and there is some level of central control in all.

Himeno

Even if VA did want to join OW, QF wouldn't have to do anything. The ACCC wouldn't allow them to join.

T.A.Music

What is ACCC?

moa999

ACCC - Australian Competition and Consumer Commission,
similar to the US Federal Trade Commission

ByrdluvsAWACO

I do understand CX's reasoning for blocking HU's OW entry, and I really don't understand HU's thinking that they can keep HX and join OW with no objection.

However, I think CX needs to look towards the future. Given the size of the mainland population, HU's growth potential is quite large.CX will can never become as large within China as HU potentially can.

The two carriers would be wise to solve their HKG issues and engage in some sort of revenue sharing venture.

FlyerTalker688786

The reasons HX/HO exist were:

1) HU needs to purchase more planes but the CAAC would not allow massive purchase unless approved by CAAC...in China the aircraft purchase is very much planned and controlled by CAAC. To have an overseas shell to make plane purchase and lease back to HU was HU's plan to overcome Chinese government body.

2) The initial investor in HO/HX needs to exit as the market become hostile after Oasis collapse. To sell the airline to United or Delta alike will only hurt CX more in home ground. In this sense a weaker HU take over actually helped CX. Can you imagine a local company under Lufthansa, United, Delta or Singapore alike?

3) HU always have plans to make IPO on HO/HX. It is not their interests to compete directly on CX.

4) At the time of HO purchase HU had loads of money needed to be invested. To invest in safe heaven Hong Kong and one of the biggest capital market is a good bet.

5) I believe the purchase of Hong Kong Airlines happened after the application blocked by CX.

Why CX blocked HU?

The answer is:

CX always wanted to bring CA into OneWorld. So they tried to block any other Chinese carrier on hope they will bring CA in. But then Air China CEO, Mr. Li, and the current boss of CAAC, are deeply influenced by ANA and Lufthansa and determined to take CA to Star alliance. CX failed to block CA to join Star twice in the board room voting. Even Mr. Li personally stand out and speak in the Chinese media by saying someone is trying to do 'BAD' thing on CA's progress. Oh well, you can go figure who was the bad boy... After Air China joined star, Mr. Li left CA and become the chief of CAAC, the governing body of China Aviation. CX lost the political battle on CA and OneWorld just sink in China market ever since.

Kachjc

5) I believe the purchase of Hong Kong Airlines happened after the application blocked by CX.

Sorry I do not understand that can you please explain-I seem to read that cx had the opportunity ti buy HX

Air China Joined star in 2007???

Hainan applied for oneworld many times after 2007 so CX blocked them after 2007 not because they wanted Air China to come to oneworld as they have already chosen star ! but because they do not want a home based competitor in the same alliance!!

I doubt Air China will ever join oneworld or cathay join star alliance simple because its to expensive and customer base will change and so many passengers will have to remember that oh now british airways and cathay so not cooperate and so on .

Yeah oneworld really needs a Chinese carrier but CX really cannot do anything its up to the Chinese .

Of the world three fastest growing economies- Oneworld dominates and will dominate more in south america and was going to In india so its not that bad

Also if KA is the only China operator it should make it stronger

Perhaps KA should codeshare with CA on internal flights to expand oneworlds network

ernestnywang

Even if KA were allowed to code-share with CA on domestic routes it would not expand the OW network, as a OW FLT needs to be both OW-marketed and OW-operated. You cannot possibly have a FLT that is both OW and *A. In fact, the CX-KA-CA JV runs pretty well between HKG and Mainland China, but only CX and CA members get to enjoy that, not other OW or *A members.

rurouni212

I'm assuming you mean China, India, and Brazil. As you pointed out, India is a complete wash because kingfisher is imploding. Was going to dominate is certainly not the same thing as currently dominating. Here, Star alliance actually has the most of the three alliances, but all three alliance market shares are small. In Brazil, oneworld will be very strong once TAM eventually switches over. As far as China goes, oneworld is extremely weak. Skyteam controls close to half the market, with Star alliance getting another quarter or so. The only place where oneworld will truly "dominate" will be South America. While that's plenty good, there are still other parts of the world where oneworld lags behind.

FlyerTalker688786

if you follow up the news the CX CEO have been indicates many many times even recently that CX wish to bring CA into OneWorld and they will still try. The current CAAC boss Mr. Li is schedules to retire from the post soon and CX thinks it would be the chance. I think the end result would be a full merger between CX and CA on the condition of CA moves to OneWorld.

KA is useless as it doesn't not operate any domestic routes!

UA Fan

Has that been confirmed?