Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
User avatar
KarelXWB
Topic Author
Posts: 26968
Joined: Sun Jul 15, 2012 6:13 pm

CX post first half net loss of $262 million

Wed Aug 16, 2017 9:12 am

CX reports a $262 million loss for H1 2017:

Cathay Pacific Airways Ltd. is slipping in its efforts to get passengers to pay more for its premium services in a test for new Chief Executive Officer Rupert Hogg as the company reported back-to-back losses.

The carrier, undergoing its biggest revamp in two decades, on Wednesday reported passenger yields declined 5.2 percent to 51.5 Hong Kong cents in the first half of the year. That’s hovering around the lowest level since 2009 for the measure, a key metric of an airline’s profitability.

Buffeted by budget carriers and deep-pocketed competitors on the mainland, Cathay is at the crossroads. It risks being eclipsed by Chinese airlines that offer cheaper, direct long-haul flights from cities like Shanghai, Guangzhou and Shenzhen, bypassing Hong Kong, whose prominence as a hub has declined relative to the burgeoning wealth of the surrounding cities in southern China.


Article
https://www.bloomberg.com/news/articles ... d-job-cuts

Carrier does not expect the operating environment in the second half of 2017 to improve.
What we leave behind is not as important as how we've lived.
 
yonahleung
Posts: 76
Joined: Wed Jun 15, 2016 3:55 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 9:30 am

They have nothing to blame but their hedging bets. They are well in the black before the hedging losses. Plain and simple case of mismanagement.
 
Noshow
Posts: 1924
Joined: Wed Jun 15, 2016 3:20 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 9:50 am

So how long are their hedging contracts running please?
 
peterinlisbon
Posts: 1860
Joined: Wed Feb 01, 2006 3:37 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 11:49 am

Hong Kong is still one of the world's greatest cities, but it is not so much the gateway to China anymore now that China has opened up and you can now easily fly direct and do business there without having to go through HK.
 
TC957
Posts: 3929
Joined: Wed May 23, 2012 1:12 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 12:25 pm

So it seems disposing of the 4-engined A340's and 744's hasn't helped them much overall then.
CX clearly needs to downsize a bit if the loss of southern China traffic is hurting them.
They can cut LHR down to 4 a day from 5 to start with. A quick check on availability in the next few days shows good availability on every fight I checked.
 
commavia
Posts: 11489
Joined: Mon Apr 25, 2005 2:30 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 12:31 pm

peterinlisbon wrote:
Hong Kong is still one of the world's greatest cities, but it is not so much the gateway to China anymore now that China has opened up and you can now easily fly direct and do business there without having to go through HK.


Indeed. HKG itself is obviously a massive draw for O&D - and in particular premium/business O&D. It's remains one of the world's greatest commercial and financial centers. As a hub, HKG is certainly not as central to traffic connecting in and out of China as it once was. But that said, HKG is still exceptionally well-positioned as a gateway between North America and Southeast Asia - that, I think, will increasingly be the geographical traffic flow that defines the fortunes of HKG as a connecting hub (similar to how the North Atlantic defines BA). To that end, it really is unfortunate that Hong Kong and the U.S. don't have Open Skies and Cathay has remains relatively less interested in deeper cooperation with partners because it's pretty remarkable to think of the profit contribution Cathay could potentially enjoy if it were integrated into the extensive JV already in place between two of its own largest codeshare partners (AA and JAL) across the Pacific.

TC957 wrote:
So it seems disposing of the 4-engined A340's and 744's hasn't helped them much overall then.


I think it's too early to see the results of that, but removing older, less-efficient 4-engine jets can only help Cathay's financial performance.
 
wedgetail737
Posts: 5335
Joined: Mon Aug 04, 2003 8:44 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 12:53 pm

I hope this loss isn't a sign for the near-future of the world airline industry.
 
CXGabriel
Posts: 136
Joined: Thu Sep 05, 2013 9:26 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 12:57 pm

A quick review of the interim report, the hedging is a big part of the loss. Taken that out, the performance is not as bad. However, I do have concern on the RPK and top line. Competition is eating up the premium margin, seems to me. With these Chinese carriers, back by the government, flooded the North American traffic with too much capacity and dirt cheap fare, including business class fare, it's not surprise that CX is impacted. In some routes, Chinese carriers are selling biz class round trip in the US$3000 to $4000 range.
 
juliuswong
Posts: 2021
Joined: Wed Dec 14, 2016 3:22 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 1:12 pm

Both SQ and CX are not doing well, this shows how cruel is the industry. For SQ, at least they have MI and TR recording profit, this helps to cushion the loss at SQ mainline and SQ Cargo. Could a low cost carrier have helped CX now if they launched it pre- Ivan Chu era? I think to certain extent it would have. They, with some others, blocked Jetstar HK from starting up, it seems it was futile. Now that HKExpress has the market, CX is too late to the party. I agree with what CXGabriel said, the China Big 3 or 4 if you include HNA Group are eating into CX's lunch because the latter failed to respond effectively and efficiently. The ME3 made the situation worse. CX needs new ideas to curb the dwindling front cabin numbers and enhance the cattle case.

With the on going job cut, I was surprised they are still doing cabin crew recruitment. Did I miss something? I read that they're tweaking some South East Asia flight to HK early morning, as a result many pax will no longer be able to connect to Europe or North America. Is this true?
- Life is a journey, travel it well -
 
zakuivcustom
Posts: 3568
Joined: Sat Jun 10, 2017 3:32 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 1:22 pm

So it seems disposing of the 4-engined A340's and 744's hasn't helped them much overall then.


And what does this has to do with the key factor in the net loss, aka the total screw-up in their fuel hedging.

Both SQ and CX are not doing well, this shows how cruel is the industry. For SQ, at least they have MI and TR recording profit, this helps to cushion the loss at SQ mainline and SQ Cargo. Could a low cost carrier have helped CX now if they launched it pre- Ivan Chu era? I think to certain extent it would have. They, with some others, blocked Jetstar HK from starting up, it seems it was futile.


Well, CX does have its own version of MI in KA. But no TR (or TZ before they merged) certainly didn't help. They could had go with "If you can't beat them, join them" and invest in Jetstar HK instead of fighting them. Too late for that now.

the China Big 3 or 4 if you include HNA Group are eating into CX's lunch because the latter failed to respond effectively and efficiently.


Well, except HNA is actually the biggest "threat", having a direct competitor in HX/UO against CX in HKG.
 
atl100million
Posts: 445
Joined: Tue May 23, 2017 1:28 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 1:30 pm

Fuel hedges are part of the problem for CX but so is growing low fare carrier presence in Asia as well as growth of longhaul carriers including the Middle East 3 heading west.

CX said that its greatest yield declines are to the US and Europe – around 5%. Those are big yield declines in fairly mature markets. Low cost carriers are depressing fares across the Pacific from some markets and HKG is one of them. Further, CX’ own capacity is up by double digit percentages and mirrors, in terms of additional seats, that of AA – its codeshare but non-JV partner. Considering that HKG is connecting less and less traffic to/from mainland China and capacity is being added to HKG, it is not surprising that yields on local HKG flights are falling. Add in that there are more nonstop flights deep into SE Asia such as SIN and other tighter alliances – including the DL/KE partnership which is moving quickly to be the largest JV across the Pacific – and CX is being pressured in every aspect of its business – short-haul intra-Asia traffic, longhaul to China connections, and N. America and Europe connections to elsewhere in Asia even as CX is not part of a JV but is facing increasing capacity from its own US partner.
 
FromCDGtoSYD
Posts: 422
Joined: Sat Mar 11, 2017 9:29 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 1:32 pm

juliuswong wrote:
Both SQ and CX are not doing well, this shows how cruel is the industry.


I think it also shows how vulnerable an airline is when it doesn't have a "protected" domestic market to fall back upon and other airlines start doing what they are. Between low costs and rising neighboring airlines these airlines start loosing the premium spot they used to occupy.
 
skipness1E
Posts: 4880
Joined: Sun Aug 19, 2007 9:18 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 1:55 pm

TC957 wrote:
So it seems disposing of the 4-engined A340's and 744's hasn't helped them much overall then.
CX clearly needs to downsize a bit if the loss of southern China traffic is hurting them.
They can cut LHR down to 4 a day from 5 to start with. A quick check on availability in the next few days shows good availability on every fight I checked.

It's one of their best routes, hence why it went from 3 to 4 to 5 daily and last year added Gatwick........
 
User avatar
hongkongflyer
Posts: 840
Joined: Tue Oct 28, 2014 8:23 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 2:36 pm

Noshow wrote:
So how long are their hedging contracts running please?


not untill 2019
 
zakuivcustom
Posts: 3568
Joined: Sat Jun 10, 2017 3:32 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 4:05 pm

They can talk about depressed yield, but ultimately, without the 3.23b HKD (~400M USD) fuel hedge loss, they would actually be making money.

One of the thing that stands out is the fuel cost. Was about 8.76B (HKD) in H1 2016, that balloon to 11.7B (HKD) in H1 2017. Last I check, fuel price didn't spiked that much.
 
Canuck600
Posts: 300
Joined: Tue Aug 01, 2017 5:24 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 4:58 pm

Is there anyway they can get out of that hedging contract early? Pay a penalty and write that off as a one time loss?
 
User avatar
RL777
Posts: 651
Joined: Thu Jul 28, 2016 1:43 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 5:42 pm

There's a lot of negativity and fear mongering going around these days when CX profitability is discussed. The root cause is fuel hedging and everybody knows that by now, I don't follow those who think that aspect is irrelevant and the business model is broken. The fact is that their operating profits are good, if they hadn't been caught with a terrible hedging decision the comments in this thread would be a lot different.
 
User avatar
lightsaber
Moderator
Posts: 20940
Joined: Wed Jan 19, 2005 10:55 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 6:10 pm

RL777 wrote:
There's a lot of negativity and fear mongering going around these days when CX profitability is discussed. The root cause is fuel hedging and everybody knows that by now, I don't follow those who think that aspect is irrelevant and the business model is broken. The fact is that their operating profits are good, if they hadn't been caught with a terrible hedging decision the comments in this thread would be a lot different.

Agreed. But some airlines saw the increasing oil supplies and backed off hedging as fuel was predicted to go to $60 to $80 and instead crashed and now is long term below $60.

Hedges are a double bladed weapon.

But CX has issues as too much of the growth is low cost.

Getting rid of the 4 holers helps.

Lightsaber
I cannot wait to get vaccinated to live again! Warning: I simulated that it takes 50%+ vaccinated to protect the vaccinated and 75%+ vaccinated to protect the vac-hesitant.
 
User avatar
RL777
Posts: 651
Joined: Thu Jul 28, 2016 1:43 am

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 6:38 pm

lightsaber wrote:
RL777 wrote:
There's a lot of negativity and fear mongering going around these days when CX profitability is discussed. The root cause is fuel hedging and everybody knows that by now, I don't follow those who think that aspect is irrelevant and the business model is broken. The fact is that their operating profits are good, if they hadn't been caught with a terrible hedging decision the comments in this thread would be a lot different.

Agreed. But some airlines saw the increasing oil supplies and backed off hedging as fuel was predicted to go to $60 to $80 and instead crashed and now is long term below $60.

Hedges are a double bladed weapon.

But CX has issues as too much of the growth is low cost.

Getting rid of the 4 holers helps.

Lightsaber


I agree with that, they are sandwiched between the Asian LCCs and the subsidized mainland carriers. The regional market for CX is the key battleground, it will be interesting to see how they combat the above threats and if that leads them to shift more of the regional network to KA.
 
VolvoBus
Posts: 242
Joined: Fri Sep 30, 2016 5:47 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 7:37 pm

Canuck600 wrote:
Is there anyway they can get out of that hedging contract early? Pay a penalty and write that off as a one time loss?



Could probably write future to sell what they have contracted to buy, which would crystallize the loss. With oil prices probably somewhere near a floor,and political uncertainties around, it might well be worth keeping what they have in case prices do rise, as future losses might be small. Not that I would trust CX's crystal ball gazers to get it right.
 
LHRFlyer
Posts: 1041
Joined: Sun Apr 11, 2010 12:50 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 8:06 pm

Irrespective of fuel hedging, if you look at the management report Cathay yields are under pressure in pretty much every market: Australasia, Europe, Canada, the US...

http://www.hkexnews.hk/listedco/listcon ... 816199.pdf

Cathay faces major structural problems. Given its relations with partners are at best ambivalent, a hefty dose of humility is required. BA, Iberia, and Qantas have all had to go through painful adjustment and are now thriving.

We introduced a four-times-weekly services to Tel Aviv in March. The service, which is operated by Airbus A350-900 aircraft, has been very well received in all classes. We will put on extra flights to meet seasonal demand on this route from September to November 2017. We introduced seasonal services to Barcelona (July to October 2017) and will introduce seasonal services to Christchurch (December 2017 to February 2018). These services will be operated by Airbus A350-900 aircraft.

We sold premium class tickets on a promotional basis to non-corporate customers.

Our weekly “fanfares” promotions in Hong Kong demonstrate our commitment to offering good-value fares in our home market.

Demand over the Chinese New Year holiday was strong, but yield was under pressure.

The performance of our Southwest Pacific routes was below expectations. Demand on Southwest Pacific routes was weak. Increased capacity from Mainland China, Hong Kong and Australian carriers put pressure on yield and the number of transit passengers.

Yield on routes between Hong Kong and Mainland China and Southeast Asia was under pressure because of increased competition, particularly from low-cost carriers.

Demand on European routes grew, but from a low base, reflecting security concerns in the early part of 2016.

Demand for travel to and from Madrid grew. Bookings for our seasonal summer services to Barcelona have been strong.

Demand for travel to the United States was weak.

Increased competition on routes to Canada is putting increased pressure on yield, especially during seasonally weak periods.

In March 2017, we increased the frequency of our services to Boston (from four flights per week to daily) and Vancouver (from 14 to 17 flights per week).

To meet seasonal demand, we increased the frequency of our service to Toronto by four flights per week between June and August 2017 (making this a twice-daily service).

From October 2017, we will increase the frequency of our service to San Francisco to three-times-daily (by adding four flights per week) and will reduce the frequency of our service to Los Angeles from 28 to 21 flights
per week.

The load factor on the route to London Gatwick, introduced in 2016, was high, but revenue was adversely affected by the weakness of sterling.

In June 2017, we increased the frequency of our services to London Gatwick (from four flights per week to daily) and Manchester (from four to five flights per week). The Manchester service is now operated by Airbus A350-900 aircraft. From December 2017, the frequency of the Manchester service will be increased to daily.

From October 2017, the frequency of our service to Madrid will be increased from four to five flights per week.

From December 2017, the frequency of our service to Paris will be increased from 10 to 11 flights per week.

From July 2017, our service to Adelaide became five flights per week year-round.

From October 2017 to March 2018, we will replace our current four-times-weekly one-stop service to Brisbane via Cairns with direct flights to both cities. The Brisbane frequency will be 11 flights per week. The Cairns frequency will be three flights per week.

In March 2017, we increased capacity on our daily non-stop flight to Brisbane by using Airbus A350-900 aircraft.

In March 2017, we increased capacity on our route to Melbourne. The route used to be operated only by Airbus A330-300 aircraft. One of the three daily flights is now operated by Boeing 777-300ER aircraft, one
by Airbus A350-900 aircraft and one by Airbus A330-300 aircraft.

The performance of our routes to Thailand was satisfactory.

In July 2017, we increased the frequency of our services to Hanoi (from 10 to 12 flights per week) and Ho Chi Minh City (from 18 to 19 flights per week).

Demand for travel to Northeast Asia was strong in the early part of 2017, but political tensions between Mainland China and South Korea in the second quarter affected demand for travel to South Korea.

We stopped flying to Riyadh in March 2017.

In October 2017, we will suspend services between Taipei and Fukuoka and will introduce a second daily flight between Taipei and Tokyo Narita.

Cathay Dragon now operates the four daily flights to Kuala Lumpur which were previously operated by Cathay Pacific.

Cathay Dragon’s service to Tokyo Haneda will be suspended from October 2017.
 
winginit
Posts: 3063
Joined: Sat Feb 23, 2013 9:23 pm

Re: CX post first half net loss of $262 million

Wed Aug 16, 2017 8:45 pm

RL777 wrote:
There's a lot of negativity and fear mongering going around these days when CX profitability is discussed. The root cause is fuel hedging and everybody knows that by now, I don't follow those who think that aspect is irrelevant and the business model is broken. The fact is that their operating profits are good, if they hadn't been caught with a terrible hedging decision the comments in this thread would be a lot different.


You say that, and yet Cathay Pacific themselves admitted this was a revenue problem even before they spoke to the hedge losses. When you're running an 85% system load factor and passenger yields are down 5.2% YoY, that speaks to a fundamental issue with the core business, which is indeed a firm pressure on account of the competitive landscape in HKG. That's not going to change, and as a result it's possible that CX need to rethink their restructuring as they approach what will be the first sequence of back to back annual loss years in their history.
 
User avatar
qf789
Moderator
Posts: 11410
Joined: Thu Feb 05, 2015 3:42 pm

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 3:04 am

CX CEO says they will focus and service and not to go down the LCC road, services include better lounges, WIFI, more food options, self service check in
Forum Moderator
 
User avatar
RL777
Posts: 651
Joined: Thu Jul 28, 2016 1:43 am

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 3:16 am

winginit wrote:
RL777 wrote:
There's a lot of negativity and fear mongering going around these days when CX profitability is discussed. The root cause is fuel hedging and everybody knows that by now, I don't follow those who think that aspect is irrelevant and the business model is broken. The fact is that their operating profits are good, if they hadn't been caught with a terrible hedging decision the comments in this thread would be a lot different.


You say that, and yet Cathay Pacific themselves admitted this was a revenue problem even before they spoke to the hedge losses. When you're running an 85% system load factor and passenger yields are down 5.2% YoY, that speaks to a fundamental issue with the core business, which is indeed a firm pressure on account of the competitive landscape in HKG. That's not going to change, and as a result it's possible that CX need to rethink their restructuring as they approach what will be the first sequence of back to back annual loss years in their history.


I'm not denying their are underlying problems with the business but my point is that without the fuel hedging said problems wouldn't be such a talking point. To the point of management admitting it to be a revenue problem....well they like to deflect the hedging issue and it's much easier to blame everything on "tough operating conditions", competition etc....
 
blandy62
Posts: 331
Joined: Tue Jul 12, 2016 12:47 am

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 3:52 am

qf789 wrote:
CX CEO says they will focus and service and not to go down the LCC road, services include better lounges, WIFI, more food options, self service check in


May be they should have created their own LCC structure long time ago (like what SQ did with Tiger Airways more than 10 years ago), instead of trying to fight the LCCs with low fares but high cost structure. They had all the time to do that, HKexpress as a LCC only appeared a few years ago.

Now they say they want to focus on service. Well they cut so much in the past few year, a lot of people inclusion high yield passenger went to see somewhere else. It is going to be difficult and costly to bring them back
 
eamondzhang
Posts: 1885
Joined: Thu Sep 23, 2010 8:23 am

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 4:39 am

While I knew it's minor issue, but from what I observed: only during last week I bought a ticket last-min (bought on Tuesday and flew the day after) from MEL to TAO and back at AU$635. That's not expensive at all and it tells about their yields. The F&B onboard also came from various sources - I've had water from the UK, Malaysia and Hong Kong on one flight, and ice creams from three countries on four flights that I took. That doesn't sound like trying to reduce costs at all.
 
jupiter2
Posts: 1739
Joined: Tue Jan 02, 2001 11:30 am

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 4:53 am

eamondzhang wrote:
While I knew it's minor issue, but from what I observed: only during last week I bought a ticket last-min (bought on Tuesday and flew the day after) from MEL to TAO and back at AU$635. That's not expensive at all and it tells about their yields. The F&B onboard also came from various sources - I've had water from the UK, Malaysia and Hong Kong on one flight, and ice creams from three countries on four flights that I took. That doesn't sound like trying to reduce costs at all.


The fare is cheap, but then again, at the last minute any revenue is better than an empty seat. As for the products offered, they may well just indicate that instead of dumping unused product after a flight, that they are consolidating unused left overs, which are still as new and then serving them later. If it is the case, it would just be an efficient use of resources.
 
eamondzhang
Posts: 1885
Joined: Thu Sep 23, 2010 8:23 am

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 6:13 am

jupiter2 wrote:
eamondzhang wrote:
While I knew it's minor issue, but from what I observed: only during last week I bought a ticket last-min (bought on Tuesday and flew the day after) from MEL to TAO and back at AU$635. That's not expensive at all and it tells about their yields. The F&B onboard also came from various sources - I've had water from the UK, Malaysia and Hong Kong on one flight, and ice creams from three countries on four flights that I took. That doesn't sound like trying to reduce costs at all.


The fare is cheap, but then again, at the last minute any revenue is better than an empty seat. As for the products offered, they may well just indicate that instead of dumping unused product after a flight, that they are consolidating unused left overs, which are still as new and then serving them later. If it is the case, it would just be an efficient use of resources.

That's true and I understood the logic behind these things. But what makes me wonder is that you can give others an impression of inconsistency. To put it simple, you never expect to have two kinds of same juice and water on one flight (add on to those bottled water from the UK on a flight departing from Melbourne), nor would you expect to have two kinds of ice-cream on the same route.

I am always for the efficient use of resources, but this CX experience is probably the worst in terms of F&B offering, in the hundreds of flights that I've taken in recent years (admittedly I haven't flown CX for years).

Cheers
Michael
 
itisi
Posts: 311
Joined: Fri Jul 22, 2016 12:37 pm

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 6:23 am

TC957 wrote:
So it seems disposing of the 4-engined A340's and 744's hasn't helped them much overall then.
CX clearly needs to downsize a bit if the loss of southern China traffic is hurting them.
They can cut LHR down to 4 a day from 5 to start with. A quick check on availability in the next few days shows good availability on every fight I checked.


Cut LHR?? Why it's a very good route for them!! You can't expect all flight to be full 365 days a year.
737-300/400/500 ... are NOT classics :)
 
scotron11
Posts: 1432
Joined: Tue Feb 10, 2004 4:54 pm

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 6:51 am

Even though CX reported a loss, they will not stop getting new aircraft, as quoted by South China Moring Post:

In addition to an ongoing ­restructuring drive to stem losses, the airline said it would continue to invest in more new aircraft, add in-flight Wi-fi in long-haul planes and upgrade dining in business class, among other measures.

ww.scmp.com/news/hong-kong/economy/article/2107051/hong-kong-airline-cathay-pacific-posts-hk205-billion-loss
 
VolvoBus
Posts: 242
Joined: Fri Sep 30, 2016 5:47 pm

Re: CX post first half net loss of $262 million

Thu Aug 17, 2017 9:01 am

Purely anecdotal, but it does cover several years. I travel London-Manila 2 or 3 times per year. As it is my money, price is obviously a major factor. While price competitiveness varies, the one consistent factor I notice is that HKG-MNL is usually CX, with only the occasional KA flight (ignoring codeshares). I would have thought with the yields available, KA,as the supposed lower cost arm, would have been the better choice to operate. Maybe has something to do with utilisation ?

Popular Searches On Airliners.net

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