Anyone who is in the process of booking any flexible J or F tickets be aware that most prices will be going up significantly for ticketing on or after 11 July. Examples of the new fares:

I don't immediately have the corresponding existing fares to hand, but the discrepancy between LHR-HKG-LHR and HKG-LHR-HKG pricing is bigger than I remember (ex-LHR is about 50% more expensive).

All Europe, SW Pacific, S & SE Asia routes have new prices also.

Plus, normal fares to the US are also going up:

This is what I suspected would happen after the introduction of the new product.

I wonder how this will affect CX's market share. I know of at least one big investment bank which has banned travel on CX to London. Their staff must take either BA, QF or VS instead.

This can't be a product based fare rise, surely ? They can't say that new-J is demonstrably better in all areas than either VS or BA on the LHR route. This has to be just more fuel cost increases.

The current prices for HKG-LON are: [%] denotes latest increase

F O/W HKD 55,330 [+24%]
F RTN HKD 85,120 [+15%]
J O/W HKD 37,110 [+13%]
J RTN HKD 57,090 [+5%]

and for LON-HKG:

F O/W GBP 5,781 [+7%]
F RTN GBP 8,894 [+7%]
J O/W GBP 3,573 [+7%]
J RTN GBP 5,496 [+7%]

The consistency across the LON-HKG fares is rather interesting, maybe it is constrained by BA/VS's pricing for that route?

Seperately, what I never understood is the existence of Fare Basis J and F. When you walk up to a ticketing counter at the airport and ask for a full fare J or full fare F, the most you will ever get charged is 56,500 for J and 73,410 for F. Under what circumstances would you want to pay 57,090 and 85,120 (or higher) for J and F respectively? Is this all purely academic since most people buy full fares on a company discount?


Current CX published fares to London (RTN)

Just did a quick search online for competing prices on fully flexible tickets:

BA: $44,880 + tax
VS: $59,370 + tax
QF: $51,570 + tax

The problem with the companies who are banning CX travel is that CX refuses to discount as much as the other carriers now.

Actually for most companies they will be specific negotiated rates with CX. I know my company does and there is a specific D Class fare which is a lot lower than the published fares. Also there is an annual rebate and a lot of other discounts/offers as well. I think for that Ibank someone is referring to must be because of the breakdown in the negotiation rather thatn this price rise.

I've read about it a few times here...how big does your firm need to be to get a company discount with CX?

This gives you an idea of the bog standard discount available to everyone:
http://www.cathaypacific.com/cpa/en_...promotions/pap

Interestingly, VS are starting twice daily flights from LON to HKG

Well I work for a global MNC and I am sure we spend quite a bit of travel with CX to Asia. Although the preferred carrier is BA in the UK.

I would imagine it will be at least a few Million � at a minimum to start getting all those benefits. I think the discount it is also arranged through the corporate travel agency but the rates we get are specific to our company.

Exactly my point - CX will not negotiate as low as the competition. If they don't have to, all power to them. But the sample I am seeing anecdotally is a slow tide rising against CX in the corporate world as well.

Well, different market, but our corporate negotiated fares on CO for NYC-HKG are meaningfully more expensive than our negotiated fares on CX for the same route. And the CO discounted fare isn't even available on Saturdays -- full published fare only.

scx, absolutely right there. In fact the corporates and i-banks have shyed away from CX 2 years ago.

My former employer (a top 5 global financial institution heavily involved in the subprime mess) mandated back in 2006 that all flights from HKG to NYC HQ must be done RTW via HK-UK-US-HK routing on a prenegotiated RTW biz fare class and cannot fly CX J HKG-JFK direct, unless he/she is of a certain corporate rank or urgent business need. F is solely reserved for regional & group C-level officers. Trips can be approved by the country level CFO with endorsement by the Asia Pac CFO. The rationale for the RTW routing is that the Asia-based executives can visit both the US HQ and UK European HQ on one ticket. The firm had a negotiated contract with CX which was a mere ~5% discount on regular published J fare. My personal travel agent was able to price very close to this fare, so its not much of a deeply discounted deal.

They have now revised the policy that employees below a certain corporate grade must fly economy regardless of distance. Only the group C-level officers can fly F. To travel on biz class, the routing must be the cheapest, including flights with 1-stopover anywhere in East Asia. So they are all flying HKG-ICN-JFK or HKG-TPE-JFK, as even HKG-NRT-JFK is too expensive for the firm. Every trip now requires the Asia Pac CEO's approval, and deviation from this rule must be authorized from the group CFO Office in NY. I dont think a lowly Analyst would have the guts to send an email to NY corporate requesting a CX Business Class trip approval for HKD 93,170 airfare, plus hotels and incidentals, vs. ~HKD $30K Biz airfare on KE, OZ & CI, especially on roadshows where such costs are multiplied.

With the TPE-HKG routes being challenged by the cross-straits direct charter flights, I wonder what CX is thinking to revise their fares upwards. Looks like Philip Chen has passed his valuable experience on how to run the company to the ground to Tony Tyler.

As for me, I am officially defecting to JAL Mileage Bank as I'm tired of this nonsense from CX.