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Old 23rd Sep 2013, 16:08
  #77 (permalink)  
cxhk
 
Join Date: Nov 2007
Location: Hong Kong
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@exitfirstright

I am not 100% familiar with the dragon air application back in the 80s, but by saying Singapore Airline going strength to strength after Jetstar Asia launch show a clear lack of understand of the situation. Jetstar Asia had made no major profit since launch (balance budget), and their aggressive pricing is there to kill Singapore Airline most profitable routes within Southeast Asia, which is exactly what they have done. Now Singapore Airline without profitable Asian route to support their long haul operations (long haul are often subsidized by profitable regional flight, this also hold true for Qantas in Australia and also for CX in Hong Kong), Singapore Airline have been struggling for the last 4-5 years. If you look at SQ long haul pricing, they can not longer undercut Qantas or Cathay without losing massive amount of money on their long haul routes. Right now if you look at SQ, they are a broken airline, they are trying to start Scoot, but from what I hear, that is not profitable. So if you talk to most analysis right now, they will all rate SQ below CX in future prospect based on challenging marketing environment. And this have always been Qantas plan all along from day one with regards to Jetstar Asia, there have been a few article written about it over the years with regards to CX and SQ pricing and Australian routes, etc... So Qantas plan for Jetstar Asia is not to there to make money, as long as it break even, Qantas is happy, Qantas want to use Jetstar to kill off SQ and CX home market so that CX and SQ can't afford to offer undercut pricing against Qantas long haul. So should HK government allow this to happen? Even Singapore government have deny Jetstar Asia growth and Sin Gov is Part Jetstar Asia shareholders (Deny Jetstar Asia operating A330, the only thing that allow SQ to still remotely compete with Jetstar Asia). So shall HK follow the same mistake that Singapore had made (and realize that they had made)? I sure hope not.
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