Topic Author
Posts: 212
Joined: Thu Apr 01, 2004 2:21 am

CX Trans-Pacific Competition

Tue May 08, 2007 5:19 am

UA announced LAX-HKG and now Oasis Hong Kong announces HKG-YVR... I am sure CX will perform well they have an excellent product, but they will have to be competitive with fares that they might not have had too in the past.

Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

RE: CX Trans-Pacific Competition

Tue May 08, 2007 5:30 am

I think Oasis Hong Kong will probably be a flash-in-the-pan. They are starting out in markets where establshed carriers (Qantas, Virgin, NWA, United, BA) will fight vigorously to protect their business. They will assault Oasis on price, capacity, timing, with frequent flyer program promotions...anyway possible to keep Oasis a tiny presence or to force them out altogether.

I don't think CX is at much risk for losing business as they offer a long established, superior product.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
Posts: 1058
Joined: Sat Feb 10, 2007 8:19 pm

RE: CX Trans-Pacific Competition

Tue May 08, 2007 5:34 am

Quoting Jetdeltamsy (Reply 1):
I don't think CX is at much risk for losing business as they offer a long established, superior product.

They sure do but if Oasis Hong Kong keeps offering the low fares they're offering, CX will have to do something because they'll lose some business. Keep in mind the majority of travelers will go with the cheapest fare.
If you're going through hell, keep going
Posts: 226
Joined: Wed Mar 21, 2007 8:21 pm

RE: CX Trans-Pacific Competition

Tue May 08, 2007 12:41 pm

CX has its Chinese, Indian, Australian, and Southeast Asian networks to feed those transpacs. There is no way Oasis can offer the same seamless connectivity out of HKG that CX does.
Posts: 283
Joined: Sun Jun 12, 2005 1:54 am

RE: CX Trans-Pacific Competition

Tue May 08, 2007 3:44 pm

Don't forget that SQ has a very profitable route through HKG to the US.
Eurobonus Gold | BMI Gold |
Posts: 202
Joined: Thu Sep 02, 2004 1:09 am

RE: CX Trans-Pacific Competition

Wed May 09, 2007 12:05 am

Oasis doesn't have any interline or hub-to-spoke network and thus only targets O&D traffic out of HKG.

Based at HKG, CX naturally commands a premium for tickets ex-HKG.
With Oasis, CX will finally get a bit of competition out of its home market.

The battle between CX and O8 is only for O&D passengers out of HKG.

It is ironic O8 is flying the same routes CX started flying back in the 80s when CX began flying then "ultra" long-haul flights.
ie London was the 1st European flight... and YVR was the first transpacific flight.
Posts: 143
Joined: Thu Jan 25, 2007 5:53 am

RE: CX Trans-Pacific Competition

Wed May 09, 2007 12:19 am

I wish O8 luck on HKG-OAK. As some with the previous response, the battle is with O&D passengers. For me personally, there's no way, I would connect on to Southwest to take another flight elsewhere from Oakland. I don't take normally take LCCs, but don't they have less generous baggage allowance?

I remember taking a Ryanair flight from Brussels (Chaleroi), to Stansted and the fare was only £19, but then I had 20kg and ended up paying almost 60 Euros for the excess luggage. I didn't know at the time.

That's why I imagine on their HKG-LGW flights, it must be mostly O&D traffic. If you had connecting passengers who had to hop on EasyJet, many of those passengers would be in for a rude awakening as these LLCs don't allow much in baggage allowance.

For me, I prefer CX. I much rather deal with a carrier that has inter-line with other carriers.

[Edited 2007-05-08 17:20:43]
Posts: 151
Joined: Thu Mar 11, 2004 3:50 am

RE: CX Trans-Pacific Competition

Wed May 09, 2007 5:00 pm

Oasis number one target market in YVR is not really CX, but those already taking lower rates flights on JL, KE, CI, and BR (MU too). By using connecting flights, these carriers retail fares in the ethnic Chinese market is at par with what Oasis is offering. At the same prices, these passengers would be drawn to the non-stop service by Oasis.
Second target market are those that can only afford to travel once every three years, now they can go at least once a year, plus those now can afford to travel twice a year.
CX is increasing its summer schedule to three times a day, a very significant increase in seat availability. They are droping the lowest prices level, and has the larger seat volumn to make tactical adjustment to compete with Oasis - if necessary.
Do note aside from the lowest Oasis rates at $299 one way ($600 return), once that seat bucket is sold out, the next level fares at $700 range is similar to all other connection carriers. On tactical fares level movement, Oasis will be facing an uphill battle with CX, and at a certain level loss its pricing advantages with connection carriers.
One major factor Oasis will be facing is IROPS (Iregular Operations - i.e. delays/cancellation). All network carriers have interline agreement, and can endorse passengers to each other for protection if necessary. Oasis has non, thus once in an IROPS situtation, it would be very difficult for passengers. Their capacity for such recovery is extremely limited, thus at a much higher recovery cost. The longer the distance you fly, the longer in time and money it cost to recover from IROPS. One such IROPS can wipe out a whole month of revenue.
Oasis entry to YVR is not that bad a corporate decision for a O&D only carrier catering for mainly Hong Kong ethnic Chinese market. However, It would be interesting to watch how Oasis would 'play' in the YVR market, only time can tell.
Posts: 414
Joined: Sat Jul 29, 2006 1:53 pm

RE: CX Trans-Pacific Competition

Thu May 10, 2007 3:00 am

Too bad Westjet is still playing footsie with Oneworld. It would be a logical tie-up for them, as an LCC, to make an agreement to feed Oasis Canadian traffic.

Who is online

Popular Searches On

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos