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

[Mulyadir Fitri 0]

Japanese airlines should jump on this and steal all transpacific pax ex-KUL from the CX group

[JuliusWong 0]

I like how one poster summarises the whole issue on airliners.net:

 

"I fly HKG KUL twice a month and fares are usually cheaper than other routes. I'm usually in a ticket class that earns 10% mileage or something stupid like that, with tickets booked less than a week in advance typically. When fares rise, the agent switches to the excellent MH, who continue to fly empty flights to and from HK, typically filled with ultra low yield mainland tour groups. Inbound business typically uses Air Asia who have an excellent northbound schedule.

The Malaysian economy is in the dumps thanks to an increasingly corrupt government who implemented GST at the same time as the fuel prices took a tumble. Unemployment is up, and underemployment, thanks to subsidies to a large part of the population, keeps rising too. I love Malaysia, but God it's so fustrating to work in these days."

[jani 0]

Japanese airlines should jump on this and steal all transpacific pax ex-KUL from the CX group

By right it should be MH who should capitalize but...

[flee 5]

Japanese airlines should jump on this and steal all transpacific pax ex-KUL from the CX group

In many ways, ANA has already begun the process - its schedule is optimised for transpacific connections. And now they also operate into HND.

[Khalil Abd Halim 0]

 

I like how one poster summarises the whole issue on airliners.net:

 

"I fly HKG KUL twice a month and fares are usually cheaper than other routes. I'm usually in a ticket class that earns 10% mileage or something stupid like that, with tickets booked less than a week in advance typically. When fares rise, the agent switches to the excellent MH, who continue to fly empty flights to and from HK, typically filled with ultra low yield mainland tour groups. Inbound business typically uses Air Asia who have an excellent northbound schedule.

The Malaysian economy is in the dumps thanks to an increasingly corrupt government who implemented GST at the same time as the fuel prices took a tumble. Unemployment is up, and underemployment, thanks to subsidies to a large part of the population, keeps rising too. I love Malaysia, but God it's so fustrating to work in these days."

 

 

i wonder what does it means by "underemployment due to subsidies"? underemployment is merely because companies want to fully utilize the available headcounts

[jani 0]

I didn't even want to comment on that post. Fly 2x to KUL monthly but come out with weird statements like that? Huh..

 

"The Malaysian economy is in the dumps thanks to an increasingly corrupt government who implemented GST at the same time as the fuel prices took a tumble."

 

Err... what?

Edited August 12, 2016 by jani

[flee 5]

The underlying message from CX is that KUL is not such a lucrative market to them compared to other destinations on their network. Hence they are prepared to pass it on to KA. Although they may be carrying good loads currently, the yields may not be up to CX's expectations.

[jani 0]

I like some analysis too on A.net, mainly saying that CX is confident that even by changing to KA, they can still maintain a certain degree of dominance since their only competition is MH.

 

Therefore, from a lower cost base of KA, and retaining the same pax, they will make money.

 

Personally, from outside looking in, this is still an incredibly bad decision and I wouldn't discount them reversing it in the near future.

[Raymund Yeoh 1]

For Y class, the food quality n quantity for KA is way better than CX.

[Ja Singh 2]

I like some analysis too on A.net, mainly saying that CX is confident that even by changing to KA, they can still maintain a certain degree of dominance since their only competition is MH.

 

Therefore, from a lower cost base of KA, and retaining the same pax, they will make money.

 

Personally, from outside looking in, this is still an incredibly bad decision and I wouldn't discount them reversing it in the near future.

 

20 flights a day between sin/hkg and most low cost airlines so with the same reasoning should they not switch to some of their flights to dragonair to match the low cost?

Edited August 12, 2016 by jadivindra

[Mohd Suhaimi Fariz 2]

20 flights a day between sin/hkg and most low cost airlines so with the same reasoning should they not switch to some of their flights to dragonair to match the low cost?

SIN got better premium feed.

 

As for Trans-Pac feed - KE, NH & JL offer better fares more often than not.

Edited August 12, 2016 by Mohd Suhaimi Fariz

[jani 0]

 

20 flights a day between sin/hkg and most low cost airlines so with the same reasoning should they not switch to some of their flights to dragonair to match the low cost?

Actually, no. I think the point is that CX "only' needs to compete against MH on the route whilst in SIN it is up against SQ.

 

This is completely ignoring of course the AirAsias and Malindos taking the leisure traffic.

 

Edited August 12, 2016 by jani

[Najib Ramli 0]

It might also have something to do with the rebranding of CX and KA. Since KA will be known as Cathay Dragon from November 2016, it brings it more in line with the Cathay Pacific brand. Perhaps, CX intends to put all non-trunk regional routes on KA and CX will focus on long haul destinations only. Maybe we will see more announcements in the coming months.

exactly, as I said earlier rebranding of Dragon to Cathay Dragon is definitely not for nothing...this is not like the pairing of 3K-QF or even MI-SQ..it's not like you suddenly have to fly 738/a320 or lose business class with the switch

 

and let's just ignore that from the standpoint of CX, this move means lower cost and higher revenue for them since they don't have a direct competitor on the KUL-HKG sector...

 

also we can conviniently overlook that the majority of KUL-HKG traffic is end to end or for connections to China rather than for connections to Europe or North America (CX only if flying to Toronto perhaps) or Australia-(duh, but few years back the fare was actually good though that's a long way home)

 

But hey let's enjoy the doomsday scenario from many on this forum, don't you just love it

Edited August 12, 2016 by Najib Ramli

[jani 0]

But hey let's enjoy the doomsday scenario from many on this forum, don't you just love it

 

Love it!

[Mulyadir Fitri 0]

or Australia-(duh, but few years back the fare was actually good though that's a long way home)

 

 

I know one hardcore CX fan who flew KUL SIN via HKG just so she could fly CX. And it was not a mileage run

[JuliusWong 0]

Insider info, sidetrack: Thai Airways will shift all short and regional route to Thai Smile. Thai Airways will focus on medium to long haul routes. In plan now, more details to come...

[Isaac 0]

If that's the case then BKK would be handed over to KA as well, since HKT and CNX are already served by them.

CX has a far larger operation at BKK compared to KUL. It is unlikely they will hand over the route to KA anytime soon.

 

 

Japanese airlines should jump on this and steal all transpacific pax ex-KUL from the CX group

Lol why ? What is so wrong with Dragonair ? Why is almost everyone here views KA as the inferior carrier in Cathay Pacific Group ?

 

 

Therefore, from a lower cost base of KA, and retaining the same pax, they will make money.

zeke, the CX senior pilot who is a regular at A.net pointed out many times already that KA having a lower cost base is a myth. Depending on the operating route, KA cost of operation at PEK and PVG is higher than CX.

 

 

Personally, from outside looking in, this is still an incredibly bad decision and I wouldn't discount them reversing it in the near future.

Doubt so. Very likely it will be business as usual at the Cathay Pacific Group. Some predicted CX will takeover most flights to PEK and PVG from HKG after the KA takeover in 2006 because these two markets are viewed as premium market. But that never happened.

 

 

For Y class, the food quality n quantity for KA is way better than CX.

Exactly. Not to mention more patience and polite cabin crews on KA compared to CX too.

 

 

and let's just ignore that from the standpoint of CX, this move means lower cost and higher revenue for them since they don't have a direct competitor on the KUL-HKG sector...

No. Contrary to popular belief, KA operating cost isn't really lower than CX.

[jani 0]

Well if inferior product to CX, one must automatically assume lower cost than CX I guess but of course I (we all?) stand corrected.

 

Perhaps it is also a "rebranding" of KA to be more in line with CX in terms of service/product. The A330's will be the same anyway.

[Isaac 0]

Well if inferior product to CX, one must automatically assume lower cost than CX I guess but of course I (we all?) stand corrected.

 

Perhaps it is also a "rebranding" of KA to be more in line with CX in terms of service/product. The A330's will be the same anyway.

All of KA 19x A330-300 have the exact same seats you see on CX 2-class Regional A330-300. Everything is AVOD and the Business Class is the latest Recaro Business Class CX introduced about two years ago. KA A321-200 have the exact same Business and Economy Class seats too. Only the A320-200 seats in Y are different. Initially they were going to install the same Long-haul Y seats on the A320-200 with PTV and all but in the end they went for WiFi entertainment system.

 

By the way, zeke has pointed it again that payroll at KA isn't any lower than that of CX.

[Adam Lawrence 0]

 

I like how one poster summarises the whole issue on airliners.net:

 

"I fly HKG KUL twice a month and fares are usually cheaper than other routes. I'm usually in a ticket class that earns 10% mileage or something stupid like that, with tickets booked less than a week in advance typically. When fares rise, the agent switches to the excellent MH, who continue to fly empty flights to and from HK, typically filled with ultra low yield mainland tour groups. Inbound business typically uses Air Asia who have an excellent northbound schedule.

The Malaysian economy is in the dumps thanks to an increasingly corrupt government who implemented GST at the same time as the fuel prices took a tumble. Unemployment is up, and underemployment, thanks to subsidies to a large part of the population, keeps rising too. I love Malaysia, but God it's so fustrating to work in these days."

 

I really didnt get this. So if airlines reducing/terminating their flights to Malaysia, it is because of the corrupted govt. But then if airlines increasing/expanding their operations on this land, what would be the reason?? We got a clean govt?

[jani 0]

Insider info, sidetrack: Thai Airways will shift all short and regional route to Thai Smile. Thai Airways will focus on medium to long haul routes. In plan now, more details to come...

MH themselves might replicate this if they decide with Firefly Jet at klia2.

 

So in the end, short haul travel all over will drop in quality

[Suzanne Goh 0]

All of KA 19x A330-300 have the exact same seats you see on CX 2-class Regional A330-300. Everything is AVOD and the Business Class is the latest Recaro Business Class CX introduced about two years ago

 

Yes, you are right... but the point some are trying to make with regards to inferior hard product is that on some flights, with careful selection, it is possible to get a 33E or 33K config with CX. That won't be possible with KA, unless as a matter of rotation they're planning to send the 3 class 33R with cirrus which they sell as F, and opening up those seats for pax as J.

[Kee Hooi Yen 0]

I really didnt get this. So if airlines reducing/terminating their flights to Malaysia, it is because of the corrupted govt. But then if airlines increasing/expanding their operations on this land, what would be the reason?? We got a clean govt?

 

I think he only says it is frustrating to work in Malaysia these days because of the corrupted govt...... nothing to do with the airlines operations.

[Mohd Suhaimi Fariz 2]

I really didnt get this. So if airlines reducing/terminating their flights to Malaysia, it is because of the corrupted govt. But then if airlines increasing/expanding their operations on this land, what would be the reason?? We got a clean govt?

It's the drastic drop in oil prices that's weighing down on the economy. All the malarkey about corruption is just a sideshow.

 

In fact if it wasn't for GST we'd be worse off.

[flee 5]

Cathay Pacific to transfer Kuala Lumpur flights to Dragonair

 

https://www.businesstraveller.com/airlines/2016/08/12/cathay-pacific-transfer-kuala-lumpur-flights-dragonair/