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Old 24th Oct 2013, 05:39
  #89 (permalink)  
cxorcist
 
Join Date: Aug 2008
Location: Polar Route
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Swh,

You completely missed my point. I don't think CX should be trying to capture market share on the Kangaroo route. That is a mostly low yield market with everybody and their brother competing for that traffic.

The traffic CX wants is O&D HKG. That means traffic which originates from HKG or has HKG as its destination. This is the high yield market. Go look at those fares, they are expensive because only two carriers do it, CX and QF. Near as I can tell, CX is kicking the crap out of QF to HKG.

The Kangaroo route should only be utilized to fill seats during off peak periods when demand is low. Of course connecting traffic is important, but that is more the case for regional connections than for long haul to long haul markets.

You can be assured that CX is not dumb when it comes to revenue management. IMO, it is one of the only things CX does exceptionally well. It is also the primary driver behind CX not committing to a new VLA aircraft. If they ever show up, I believe they will be leased, not purchased. The last thing CX wants to do is fight fare wars with other A380 operators in desperate attempts to fill seats.
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