Cathay Pacific Quits Kuala Lumpur; Cathay Dragon (Dragonair) to Take Over from March 2017

[KK Lee 5]

Cathay Pacific Airways Ltd., Asia’s biggest international carrier, says it’s getting tougher to find premium fliers from Hong Kong.

The lack of first and business-class travelers from the Asian financial center -- the worst since the global financial crisis days of 2009 -- is such a dent on Cathay’s financials that analysts are asking whether Chief Executive Officer Ivan Chu needs to find a Plan B. After more than two years at the helm of the marquee Hong Kong airline -- his two predecessors stayed for about three years at the top -- Chu is under pressure to revive earnings that have slumped amid an expansion by his Chinese and Middle Eastern rivals.

Cathay shares have lost about 25 percent of their value since Chu took over while passenger yields -- the amount earned by carrying a person per one kilometer, and a key metric of profitability -- slumped to their worst in seven years. With Chinese airlines offering more direct services to the U.S. and Europe from the mainland, Cathay’s Hong Kong hub is no longer critical. The carrier also reported Wednesday that it lost HK$4.49 billion ($579 million) from fuel hedges in the first half of the year.

...

“Some of the problems Chu faces are structural, which he can’t really counter,” Craigs said. “All airlines experience external turbulence. Changing management won’t solve all the problems. Cathay has a strong history of getting through difficult times.”

Instead of counting on the premium segment, they should focus more on their unit Dragonair and boost their regional services to capture a market that is switching to rivals in China, said Endau’s Shukor.

“Chu needs low-cost, and that should be priority for him right now,” he said. “You have to price your fares more competitively, which they haven’t been doing.”

Cathay will add more flights to the U.K. and continue to make long-term strategic investments including in lounges, Chu said.

http://www.bloomberg.com/news/articles/2016-08-17/cathay-pacific-says-premium-travel-slumping-prompting-discounts

Edited August 18, 2016 by KK Lee

[JuliusWong 0]

The profit tumbled 82%.....Singapore Airlines is also facing stagnant growth. Power of LCC in Asia Pacific.....

[Isaac 0]

"Cathay needs to change their business model from being a hub airline to a more point-to-point airline," said Mohshin Aziz, said analyst at Malayan Banking Berhad. "But I don't think that will happen in my lifetime."

LOL

 

 

The profit tumbled 82%.....Singapore Airlines is also facing stagnant growth. Power of LCC in Asia Pacific.....

There is this Hong Kong Airlines which is competing directly with CX/KA as a full service carrier. And their air fare is usually a lot cheaper than CX/KA especially to PVG and BKK.

[JuliusWong 0]

LOL

 

There is this Hong Kong Airlines which is competing directly with CX/KA as a full service carrier. And their air fare is usually a lot cheaper than CX/KA especially to PVG and BKK.

Oh yes, that as well. Mighty powerful Hainan Group which seems to be buying everything from catering to hotel to airport to airlines to resorts with"FOR SALE" signs around the world.

[S V Choong 4]

LOL

 

 

There is this Hong Kong Airlines which is competing directly with CX/KA as a full service carrier. And their air fare is usually a lot cheaper than CX/KA especially to PVG and BKK.

HX does not fly to KUL unfortunately. Plus KA fares are a lot more expensive.

 

HX had already started or about to start routes to OOL and AKL. Their fares are a lot cheaper than CX. The only downside is the equipment. 333 or 332.... or 320 for regional. I would imagine I will have a 333/332 or 320 phobia if I fly with them all the time.

Edited August 19, 2016 by S V Choong

[Chris Tan 0]

The only downside is the equipment. 333 or 332.... or 320 for regional. I would imagine I will have a 333/332 or 320 phobia if I fly with them all the time.

I hope you don't fly with MH around Asia-Pacific because you'll have a 333/738 phobia

[JuliusWong 0]

Sorry the profit tumbled 182%, not 82%. profit turned into loss......One could wonder what went wrong with CX despite flying one of the most modern fleet, strict management style and cost operation.......five stars airline too.

[flee 5]

CX did not make a loss.

 

It made a profit of HK$353m for the first half of 2016 compared to HK$1,972m in 1H2015. That is a 82.1% reduction year on year.

 

See:

http://www.cathaypacific.com/content/dam/cx/about-us/investor-relations/financial-briefings/en/2016_analyst_briefing_17Aug2016_en.pdf

Edited August 19, 2016 by flee

[KK Lee 5]

Sorry the profit tumbled 182%, not 82%. profit turned into loss......One could wonder what went wrong with CX despite flying one of the most modern fleet, strict management style and cost operation.......five stars airline too.

 

Believe losses was due to fuel hedging (bet greedily and wrongly),

[S V Choong 4]

I hope you don't fly with MH around Asia-Pacific because you'll have a 333/738 phobia

 

Nope, don't really fly with MH anymore unless I have to. I don't even live in Malaysia.

 

Actually it is more like 333 and 320 phobia.

[Sandeep G 1]

http://centreforaviation.com/analysis/cathay-pacific-high-cost-and-pilot-constrained-promotes-regional-unit-dragonair-to-reduce-costs-298296

 

Says it all... Don't be blinded by politics and politics alone.

[Craig 0]

The KA-lonization of KUL is now reflected in the GDS.

 

CX 724/725/729/720 will be KA-ed beginning March 2016 and the remainder beginning June.

 

New flight numbers will be KA 722-729. Frequency remains 4 daily A333.

 

On a side note, some CX 724/725 flights will be operated by CX 77G/H this November. IME, some crew treats this as F cabin (sold as J) - curtains are drawn with more attentive service and pax in this small cabin are allowed off the plane first before regular J.

 

Also, bye bye BA/AA code on this route and for those who credit their mileage to AS.

Edited September 19, 2016 by Craig

[Chris Tan 0]

The KA-lonization of KUL is now reflected in the GDS.

 

CX 724/725/729/720 will be KA-ed beginning March 2016 and the remainder beginning June.

 

I guess this means it'll be a 2-stop affair to/from YVR for me

 

 

Also, bye bye BA/AA code on this route

Can I still credit KA flights to my AA BIG account?

[Kris Kim 0]

I'm not sure what you mean by BIG account? But as KA is a oneworld affiliated member, points and status credits will be awarded to those members of AA, BA, QF etc... frequent flyer programs.

[Mike P 0]

Let's get the IATA airlines code right.

 

AA = American Airlines

AK = AirAsia.. and only AirAsia Malaysia, not including other AirAsia affiliates as below:

 

AK - AirAsia Berhad (Malaysia) FD - Thai AirAsia Co., Ltd QZ - PT Indonesia AirAsia

Z2 - Philippines AirAsia Inc I5 - AirAsia (India) Limited D7 - AirAsia X Berhad (Malaysia)

XJ - Thai AirAsia X Co., Ltd XT - PT Indonesia AirAsia Extra

Coach and/or ferry operator

[Mulyadir Fitri 0]

 

Let's get the IATA airlines code right.

 

AA = American Airlines

AK = AirAsia.. and only AirAsia Malaysia, not including other AirAsia affiliates as below:

AK - AirAsia Berhad (Malaysia) FD - Thai AirAsia Co., Ltd QZ - PT Indonesia AirAsia

Z2 - Philippines AirAsia Inc I5 - AirAsia (India) Limited D7 - AirAsia X Berhad (Malaysia)

XJ - Thai AirAsia X Co., Ltd XT - PT Indonesia AirAsia Extra

Coach and/or ferry operator

I'm sure they know. It is meant to be an inside joke I guess as there are a few senior members doing it lately

[Cheng Kit 0]

Hopefully Dragonair would use Cathay Pacific aircraft sometimes when they service KLIA

Edited September 22, 2016 by Cheng Kit

[flee 5]

Hopefully Dragonair would use Cathay Pacific aircraft sometimes when they service KLIA

Cathay Pacific has already announced that five A330s will be transferred from their fleet to Cathay Dragon.

[Roy Chin 0]

 

Nope, don't really fly with MH anymore unless I have to. I don't even live in Malaysia.

 

Actually it is more like 333 and 320 phobia.

Hi-5. Been on CX720/722/729 in 773/772/333/343

333 was one of the worst.

 

+1 for 773

[Craig 0]

CX will be adding another weekly HKG-KUL flight between 08DEC and 23FEB (making a total of 5 flights a day on Thursdays). Flight schedule is as below:

 

CX727 HKG1055 - 1450KUL 4 EQV

CX728 KUL1605 - 2005HKG 4 EQV

 

Most flights are 2-cabin 773 with a couple of 33E/33P/343.

 

Seems like CX is sending its 77G/77H to KUL at least once a day for W16/17. One last hurrah before being KA-ized.

Edited November 3, 2016 by Craig

[Suzanne Goh 0]

 

 

Seems like CX is sending its 77G/77H to KUL at least once a day for W16/17. One last hurrah before being KA-ized.

 

77H you say ? now that fires up an itch.....

[Chris Tan 0]

 

77H you say ? now that fires up an itch.....

Why does it concern you? It doesn't have the regional J product which, as we've discussed earlier in the thread, is the best in the industry.

[Jeremiah Wong 0]

When will be CX last flight to KUL? Now we got KA and CX and I thought CX's metal will stop flying to KUL no?

[Chris Tan 0]

When will be CX last flight to KUL? Now we got KA and CX and I thought CX's metal will stop flying to KUL no?

It's a gradual transfer from CX to KA. A bit like how SQ gradually handed over its KUL flights to MI back in 2008/2009, but stopped short of giving up KUL entirely.

 

Last flight departs HKG on 30 April as CX791, returning 1 May as CX790.

 

May Day 2017 will be a dark day for KLIA...

Edited April 25, 2017 by Chris Tan

[Craig 0]

Last flight departs HKG on 30 April as CX791, returning 1 May as CX790.

 

May Day 2017 will be a dark day for KLIA...

But you get better catering tho. You'll get "refreshments" now!