CX & KA new commands?

[SMOC]

If you want a new command here you go........

Cathay mulls low-cost venture as Jetstar Hong Kong's approval looms (http://www.flightglobal.com/news/articles/cathay-mulls-low-cost-venture-as-jetstar-hong-kongs-approval-looms-379284/)

[broadband circuit]

Interesting point about competing every day with LCCs:

It has held its own and in some cases, even won market share against the new entrants.

Sort of proves what everyone has been saying about JetstarHK being a bit of a lemon. Anyone that knows anything about the psyche of the HK public knows that it's all about image. HK has more millionaires/billionaires per capita than just about anywhere else on the planet - and they like to show it! Flying on a LCC is not an image of "prosperity, wealth & success".

It might have worked in Ireland Alan, but if you think you're struggling with the LCC model in Australia (which you are, except for some creative accounting), then you're in for a rude shock in HK.

[crwjerk]

There's no need for CX to set up its own LCC, it can operate as is and f*ck jstar out of existence very quickly. A rude shock indeed.

[schnook]

Cx already have a LCC .....KA

[dartman2]

JQ HK will (provided it can overcome AOC issues) become a very successful operation. Not for the partner investors but for those who own the leasing company.

It is amazing that people that work in this industry do not understand it. The model is very simple:

1. Set up LCC funded by two major airlines, one to oil the wheels in HK and the other to pay most of the bills
2. Collect some modest income from fares
3. Shortfall in revenue made up by most likely one major airline
4. Collect lots of $$$$ each month in aircraft lease payments underwritten by, most likely, one major airline.

People should examine the links between the ownership of said aircraft leasing company and the management of one of the partner airlines.

[mngmt mole]

JQ will spend whatever is necessary to gain a toehold in HK. CX had better start filling the unused slots they possess. Otherwise the CAD will revoke them and allocate them to another airline...like JQ.