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


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198 replies to this topic

#21 Chris Tan

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Posted 12 August 2016 - 08:03 AM

Come on guys, no need to exaggerate any political issue with this. It totally is unrelated.

If it was, BA, KL, TK, QR etc wouldn't be expanding in KUL.


Oh, of course not. The country's financial situation is in no way related to political issues. While listing examples you conveniently left out LH, QF, AF who pulled out, as well as the fact that our very own airline has cut virtually all long-haul routes.

Business is business, and KUL/HKG has strong business connections.

Evidently, not strong enough for CX to stick around

Edited by Chris Tan, 12 August 2016 - 08:04 AM.


#22 Danny Yc Leong

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Posted 12 August 2016 - 08:07 AM

do you think it has something to do with streamlining operation and sales since KA is operating to two other ports in MY? 



#23 Chris Tan

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Posted 12 August 2016 - 08:40 AM

do you think it has something to do with streamlining operation and sales since KA is operating to two other ports in MY? 

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

#24 flee

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Posted 12 August 2016 - 08:49 AM

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.



#25 jani

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Posted 12 August 2016 - 09:32 AM

Oh, of course not. The country's financial situation is in no way related to political issues. While listing examples you conveniently left out LH, QF, AF who pulled out, as well as the fact that our very own airline has cut virtually all long-haul routes.

Evidently, not strong enough for CX to stick around

When did I say the country's politics and finance aren't related? I said it is not related to CX pulling out of Malaysia. Hope you can comprehend this properly instead of sounding sarcastic for no apparent reason.

 

QF? They left KUL 10 million years ago.

 

For the others, that's when you can question yield. Business connections between France/Germany and Malaysia aren't anywhere near Hong Kong and Malaysia.


Edited by jani, 12 August 2016 - 09:35 AM.


#26 Mulyadir Fitri

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Posted 12 August 2016 - 10:25 AM

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



#27 JuliusWong

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Posted 12 August 2016 - 10:47 AM

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."
 
:)


#28 jani

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Posted 12 August 2016 - 10:58 AM

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...

#29 flee

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Posted 12 August 2016 - 11:52 AM

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.



#30 Khalil Abd Halim

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Posted 12 August 2016 - 12:01 PM

 

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 



#31 jani

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Posted 12 August 2016 - 12:05 PM

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 by jani, 12 August 2016 - 12:05 PM.


#32 flee

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Posted 12 August 2016 - 12:14 PM

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.



#33 jani

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Posted 12 August 2016 - 12:22 PM

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.



#34 Raymund Yeoh

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Posted 12 August 2016 - 12:28 PM

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



#35 Ja Singh

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Posted 12 August 2016 - 12:51 PM

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 by jadivindra, 12 August 2016 - 12:55 PM.


#36 Mohd Suhaimi Fariz

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Posted 12 August 2016 - 01:23 PM

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              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 by Mohd Suhaimi Fariz, 12 August 2016 - 01:24 PM.


#37 jani

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Posted 12 August 2016 - 01:43 PM

                                                                           
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 by jani, 12 August 2016 - 01:43 PM.


#38 Najib Ramli

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Posted 12 August 2016 - 02:01 PM

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 by Najib Ramli, 12 August 2016 - 02:05 PM.


#39 jani

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Posted 12 August 2016 - 02:43 PM

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

 

Love it!



#40 Mulyadir Fitri

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Posted 12 August 2016 - 03:15 PM

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




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