PPRuNe Forums - View Single Post - Cathay mulls low-cost venture as Jetstar Hong Kong's approval loom
Old 23rd Nov 2012, 02:14
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geh065
 
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geh065 There's a little more to the low cost concept than just getting cheap pilots!!
ahhhh not really, the other costs like fuel, landings fees etc are all the same. Only thing else they could skimp on would be the food, but I think CX food is already at the bottom!
How about having no IFE to save weight, leather type seats which last longer and require less cleaning, having cabin crew clean aircraft, having short turn-arounds of 20-30mins or so, no food but drinks/snacks for sale, high seat count with less legroom and seat width so you can pack more pax into each plane, cheaper headquarters in some older office building somewhere cheap, non-branded stationary for office staff, fewer staff benefits (for ground staff anyway - they would still be willing to work for the company), less travel benefits, no 13th month, no profit sharing scheme, no free/subsidised staff transport, single class cabin, no frequent flyer programme, no airport lounges...these may be little things on their own but they all add up to additional cost which although allows you to charge more in ticket price ultimately does not fit the low cost model.

CX does have low costs in some areas and does offer some cheap tickets which can rival LCCs in price but at the end of the day we are a full-service premium airline which occassionally sells cheap tickets.
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