It's really sad to watch CX freefall like this. I believe it is primarily the result of three factors:
1) Arrogance - Hong Kong has for decades been an aviation goldmine. It was not only the gateway to SE Asia, but also China as it burgeoned into a global power. Sadly, CX managers have thought they were brilliant this whole time and that they were the reason CX made money hand over fist. The truth is that any group of monkeys could have managed CX for the last several decades and done similarly well.
2) Penny wise, pound foolish - CX management pursues cost cutting strategies that save very little and often end up costing them more in the long run. For example, pulling the coffee machines out of the sim building, denying crew allowances based on the slightest of delays, and basically pursuing every cent of savings regardless of the goodwill it destroys. In essence, CX managers are very shortsighted. This is a structural failure within the Swire group that must be changed if CX is to survive.
3) The Market - It has changed. Our competitors from overseas and around the region have strengthened. They have improved their product while CX's has worsened. CX's premium customers are no longer loyal because the service has deteriorated, as has the on time performance and reliability. The operation runs on a shoe string while our competitors pump seats and flights into Hong Kong. The A380 operators bring scale while the LCCs and smaller international carriers bring frequency. The non-CX options in Hong Kong are substantial. Meanwhile, cargo operators flood HK with capacity at the slightest sniff of improving yield. The $5B cargo terminal is a bust as the mainland ships most of its freight direct. Meanwhile, the catastrophic fuel hedges put CX at a huge cost disadvantage against the competition.
Yes, it really is that bad. The question is whether CX will learn or not.