How CX & KA maintain its competitive edge among other competitors???

7182 Views 30 Replies 10 Participants Last post by hkskyline, Oct 14, 2010

Kaitak747

Discussion Starter · Oct 4, 2010 (Edited)

How do CX & KA maintain its competitive edge among other competitors???

In my opinion, the key of continual growth of CX is to desperately maximize the synergy effect of the merger of CX and KA. Last year, KA launched scheduled flights from HK to Guangzhou, it's very clear that this route is to cater for the transit passengers from Europe, Australia and North America rather than HK locals. 5 years ago, I heard that people from Europe and North America would rather go to Guangzhou via Shanghai as Shanghai (Pudong + Hongqiao)was very well connected to Guangzhou Baiyun. At that time I found it very ironic that HK could not even become the gateway to the biggest city of Guangdong Province, not to mention the entire China.

Nowadays, there are lots of codeshare flights between CX & KA, I think this will help HK strength its position as a gateway to Pan Pearl River Delta and the entire China. As we can see, CX seems to be much more aggressive in expanding its network this year, with Milan, Moscow and Okinawa (operated by KA) being added in one go. But I have no idea whether it could be lucrative if they commence or resume services to Zurich, Manchester, Copenhagen, Munich or even Rio Janeiro. Please share with us your insight.

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Kaitak747

Discussion Starter · #2 · Oct 4, 2010

By Jacky @ HKADB

其實好多時大家都好著眼究竟一個機場一間航空公司有幾多個航點
但係我覺得個載客量先係最重要
其實如果大家比較過去十年新航同國泰既載客量升幅員
可以講國泰既發展一點都唔會比新航保守
兩間公司係九八年香港新機場開幕時其實新航比國泰無論係機隊同載客量都要大得多
屈指一算過去十年就算唔計入港龍國泰既載客量已經同新航比係不相上下
其實如果大家想香港機場可以持續發展國泰既發展路向當然係一個重點
但係我覺得你要鼓勵國泰同其他外國公司黎香港增加航班
其一要係擴充跑道容量其二係要減低香港機場既營商成本
要知道香港機場既經運成本係亞洲係數一數二高 ... 而國泰既單位營運成本亦其實相對好多其他國外公司高得多當你既成本係咁高時候自然開新航點冒險既意慾就會低
所以我覺得要繼續維持香港既地位講緊既全套政策同基建既配合鼓勵航空公司增加班次

如果你話爭，香港好大部份係想做南中國既市場，呢一方面，北京上海因為地理位置其實好難去爭，正如人地做華北長三角既市場你都好難同人地爭，未來要諗既不如黎自廣州既競爭。至於星加坡其實佢論地理位置係比唔上香港既，但係早係立國初年已經著力發展既袋鼠航線，其實我地近年既增長(載客量)係比佢地快，你睇下近年國泰歐洲線同澳洲線加班既情況可見一斑。其實咁多年星加坡係一個生存空間咁窄既環境發展得咁成功係好值得我地學習，我地既先天地理條件比人地好，做得好過人地係應該既，做得唔好係我地自己既問題，我地真係好好把握機會，同時學習一下人地既經驗。

aab7772003

· #3 · Oct 4, 2010 (Edited)

Kaitak747 said:
But I have no idea whether it could be lucrative if they commence or resume services to Zurich, Manchester, Copenhagen, Munich or even Rio Janeiro. Please share with us your insight.

The most important gateway for the entire South America is São Paulo.

MAN-MUC-HKG could be a good route for CX. CX has been pretty silent on ZRH for years while the company has recently expressed a rather vocal interest on MUC. MAN would have been online once again by now if the Russian authority had not made it difficult for CX to tag MAN onto its SVO route.

Wasn´t CX going to launch a daily JFK-LHR service?

hkskyline

· #4 · Oct 5, 2010

Yes - 5th freedoms stopped Manchester via Moscow.

CX has the rights to fly New York to London, but I don't think it's wise to launch since that route is highly-competitive and they will not score business passengers if they don't fly multiple times a day. If they go for Y only, they have plenty of less-known carriers to compete with and yields will likely be very low.

Longershanks

· #5 · Oct 5, 2010

Central Government is not going to allow a Britsh airline to compete fairly in China so perhaps Cathay should start to expand and buy significant shares in other regional airlines such as

- Turkish
- Kenyan

etc

hkskyline

· #6 · Oct 5, 2010

Longershanks said:
Central Government is not going to allow a Britsh airline to compete fairly in China so perhaps Cathay should start to expand and buy significant shares in other regional airlines such as

- Turkish
- Kenyan

etc

Last time I checked CX owns a big chunk of Air China.

ad50939

· #7 · Oct 6, 2010

Kaitak747 said:
By Jacky @ HKADB

.....其一要係擴充跑道容量其二係要減低香港機場既營商成本
要知道香港機場既經運成本係亞洲係數一數二高 ...

I posted on another thread (post #205) the views of IATA and AAHK about the charges of HKIA in comparison of airports in the same region. Here is the link to that thread:
http://www.skyscrapercity.com/showthread.php?t=1062861&page=11

ad50939

· #8 · Oct 7, 2010

Apart from HKG, does CX have another hub?

EricIsHim

· #9 · Oct 8, 2010

hkskyline said:
Last time I checked CX owns a big chunk of Air China.

19.18%, but Air China holds 29.99% of the share of CX.

ad50939 said:
Apart from HKG, does CX have another hub?

No, Hong Kong is the only real CX hub.
It runs with code share in all other continents.

Rachmaninov

· #10 · Oct 8, 2010

I'm not great at these things, but Zurich do sound like an attractive possibility.

Kaitak747

Discussion Starter · #11 · Oct 8, 2010

Rachmaninov said:
I'm not great at these things, but Zurich do sound like an attractive possibility.

This route was cut so many years ago due to the economic recession back then.

yeung3939

· #12 · Oct 8, 2010

CX should work to povide quality service.

By the way, is the infrastructure of Hong Kong Airport part of CX and KA's comptiiveness?

ad50939

· #13 · Oct 8, 2010

The route network of the airline and the infrastructure of the hub airport compliments each other.

aab7772003

· #14 · Oct 8, 2010 (Edited)

Longershanks said:
Central Government is not going to allow a Britsh airline to compete fairly in China so perhaps Cathay should start to expand and buy significant shares in other regional airlines such as

- Turkish
- Kenyan

etc

Turkish Airlines is a huge airline on the look out for acquisitions now!

ad50939

· #15 · Oct 11, 2010 (Edited)

CX's European Destinations

I always think if CX might be able to provide better European connections if it can establish a major hub with other One World's partner somewhere in central Europe, such as in Germany.

There are two major European hubs of One World, namely London (base of BA) and Madrid (bas of IB). CX flies frequently into the former, where you're most likely to be transferred to your onward flight operated by BA, but London is the westernmost destination of CX's network and so it'd be a waste of time if the intended destination is somewhere to the east of London, e.g. Athens.

I heard that Air Berlin will be joining One World soon and I persoanlly would like to see a major One World hub can be established in Germany soon.

hkskyline

· #16 · Oct 11, 2010

Well, there are no other big oneworld partners who can offer seemless connections east of London. Any time savings from less distance travelled will be offset by less frequent flights and smaller destination range.

urbanfan89

· #17 · Oct 11, 2010

hkskyline said:
Well, there are no other big oneworld partners who can offer seemless connections east of London. Any time savings from less distance travelled will be offset by less frequent flights and smaller destination range.

There's Finnair, whose specialty is using its northern location to transfer those travelling between Europe and Asia. Or S7 from Russia, whose main hub (Moscow Domodedovo) is already a CX destination.

hkskyline

· #18 · Oct 12, 2010

urbanfan89 said:
There's Finnair, whose specialty is using its northern location to transfer those travelling between Europe and Asia. Or S7 from Russia, whose main hub (Moscow Domodedovo) is already a CX destination.

Well, they are not likely to run as many frequencies / range of destinations as London.

ad50939

· #19 · Oct 12, 2010 (Edited)

Therefore I think a main OneWorld hub located in either Frankfurt or Munich would be ideal. Frankfurt is the obvious choice but Lufthansa is one of the owners of that airport. Berlin can also a candidate when its new airport be completed in 2012.

Flight time from HKG to Germnay is some 2-2.5 hours less than that to London. Germany is also centrally located in Europe and connecting distance to other European cities from Germany must be shorter than from London.

CX is already serving Frankfurt and if she can reinforce the service there to cope with Air Berlin's vast European network, it could bring in additional patronage for CX.

Rachmaninov

· #20 · Oct 12, 2010

ad50939 said:
Flight time from HKG to Germnay is some 2-2.5 hours less than that to London. Germany is also centrally located in Europe and connecting distance to other European cities from Germany must be shorter than from London.

I thought it would be like 1 hour less only.

Very sorry for my digression but I just wanted to confirm... I am sure that connecting distance must be shorter than going to London anyway.

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