But since posters here are asserting that Dragonair could not compete with Cathay, then I would like to draw your attention to the financial data at the bottom of the previous post.
A mighty substantial portion of CX's profit was derived from a mere 25% stake in KA... What does that say about the profitability of KA? To me it says that KA would be better re-investing that, rather large sum, into developing itself as a substantial regional airline rather than cross subsidising CX. It also means that KA is not the 'small fry' in comparison to CX that many of you make the mistake of assuming.
Rather misleading of you don't you think? The quotation from the original post read:
Dragonair and other associated firms
This additional CX profit comes from a very large number and variety of associated companies of which Dragonair is just one. Furthermore KA has stated that the profit it derives from PEK and SHA allow it to cross subsidise many of its other Asian routes which it would otherwise be unable to operate. If CX were to use the capital currently invested in KA to expand and compete with KA on selected routes then the results would be interesting.
A lot of water has flowed under the bridge since CX and Swire saved KA from oblivion but let's not forget that is what they did. Perhaps now they think it is time for KA to stand on it's own feet and compete with CX on a level playing field. Hope this answers the questions posed at the end of your post HIALS.