MAX: The Full Sorry Tale - in five acts
Here it is. The tale of Macau Express in five acts.
Prologue: In a galaxy far, far away NX/CNAC realise that the aviation environment may be changing. They have heard tales of a planet "Low Cost" and an Australian emissary tries to persuade them to embrace the future. They think about it briefly; refuse and return to their shark's fin soup.
1. Act One, 2005: NX/CNAC is under governmental pressure again to develop Macau's aviation scene. They come up with a cunning plan: keep the best routes for themselves and then issue three sub-concessions (the second-best routes for their own start up Macau Express, then some short-haul ones for a friend of the family (who they don't expect to use them) and then the remaining dross to an annoying newcomer Viva. NX seniors actually chuckle during the signing ceremony of Viva's routes (Moresby, Christchurch, Lisbon, Male etc).
2. Act Two, 2005: For their own sub-concession new airline NX/CNAC needs to look a bit "new" so they ask in Shun Tak as a shareholder. Lots of talk about leveraging the core excellence of the combined owners (?). Shun Tak doesn't really understand what it is getting into but Pansy knows best, and who dares to disagree? NX management in Macau not very keen but they hope it will just go away if they close their eyes (in the same way that AACM insistence on action normally does). CNAC figures too busy snoozing to actually look at a spreadsheet and work out that their plan will haemorrage cash.
3. Act Three, 2006: Viva being a nuisance by actually trying to get into the air, somehow finding ongoing if suicidal financial support through backing of another local Family. CNAC takes an afternoon off from snoozing to employ a leading LCC CEO from Europe for their own Macau Express start-up. Leading CEO does not understand that he must kow tow to shareholders, even if they know next to nothing about operating an airline, and quits after three months. CNAC is annoyed by the whole experience and sources a more "culturally-aware" team from KA.
4. Act Four, mid 2007: Macau Express start-up plans move forward, albeit not particularly impressively. Strangely a binding commitment for six old Japanese aircraft is signed. However, major changes in Beijing (CX takeover of KA) means that CNAC geriatrics in Hong Kong and Macau begin to lose power and patronage. Air China now begins to ask questions of CNAC as to why two loss making airlines in Macau would be better than one. KA team not sure which shareholding group to please. NX management is delighted and stirs things up by offering to support in all areas. A five minute review of their capabilities highlights that this is disingenuous.
5. Act Five, late 2007: Everything on hold. Shun Tak realises it is a minority shareholder in an airline which the majority owners don't actually want. Pansy stomps her expensive shoes. Beijing tells her to bugger off. KA management team realises it is deep in the !!!! and maybe the Leading CEO had a point so they focus on their own futures. NX still desperate to "help". Their grins weaken when Air China insists that they take on most of the six outdated A320s and hand over their newer equipment to Beijing. KA team departs.
Epilogue: The efforts shift to working out how to pretend that the sub-concession routes will be operated by an "independent" carrier. NX and Air China begin to lobby AACM to allow for (depending on the day of the week) two carriers, one AOC or one AOC, two carriers. NX prepares for "takeover" of Macau Express (in effect inheriting a half-finished AOC and six, difficult-to-maintain aircraft). Everyone else laughs.