|Quoting PVG (Reply 35):|
CX fares on international business class are too high! I find that they are often 50 to 70 % more expensive than the competition. So, clearly, there isn't enough competition or their operating costs are too high. or, maybe i need a new agent
The majority of premium seats in CX
are not retail sales, the are long term corporate contracts that is what the airline counts on for bread and butter. Retail sales are a "bonus", only a small number of those seats are sold. Other airlines rely on retail sales as they do not have established long term contracts.
Similar happens with economy seats, the majority of them are sold much lower prices well in advance, so the airline will know they have the cost of operating the aircraft covered. If you turn up last minute at the airport and want a seat, you will pay the full published fare, which could be 5 times higher than an internet fare.
Amex travel tend to get good rates with CX
|Quoting Sydscott (Reply 37):|
2. Jetstar Japan is, for JAL, acting in the same way Jetstar Australia/NZ acts for Qantas. It is, in effect, JAL's LCC carrier and, as such, it doesn't want to compete with JAL where JAL already has a substantial network. JAL has a much smaller domestic Japan position than ANA Group does and is about the same size as ANA Internationally. So the initial focus for Jetstar Japan is domestic.
Jetstar Japan is not allowed to compete with JAL, there is a ring fencing agreement in place that stops competition with JAL, China Eastern etc.
What is not also mentioned is that Jetstar in Australia, Singapore, Japan, and Vietnam have ownership requirements to fly internationally. Jetstar HKG
at the time of application was 100% foreign owned, not the 30 something percent of Vietnam and Japan.
|Quoting VCEflyboy (Reply 38):|
They may not have got money, but they got a huge 5* airport designed specifically for them.
If you recall the original airport was supposed to be built by the China border to serve both HK and SZ, which would have been much more efficient and cost effective as the transportation infrastructure would be already there, yet CX got the govt to scrap the plan and build the airport in the furthest possible location from the border to prevent Chinese airlines from having a foot in the door to HK's lucrative market.
I dont recall that at all.
|Quoting Sydscott (Reply 41):|
The application of Hong Kong Basic Law to a commercial Enterprise should be a straight thing for a Government Department to decide on. It's not earth shattering or ground breaking.
How can it be a straight forward decision ? At the same time as the application in HKG
/JQ had an application into the ACCC for collusion, where they had already included Jetstar HKG
into that entity. That was the smoking gun which showed that control was not in HKG
. The Application to the ACCC was not brought forward by Jetstar HKG
, it was brought forward by QF
The Jetstar Joint Venture Coordination Agreement (JVCA) set the network, pricing, scheduling, marketing, customer service, loyalty programs, purchasing and resourcing for the Jetstar brand, including its regional offshoots. That is not local control.
The ACCC approved the collusion, so we have the Australian competition regulator giving Jetstar HKG
to ability to collude with QF
/JQ, and also for the fares to be set by QF
/JQ, and the Jetstar franchisees are not permitted to compete with "ring fenced" airlines.
So where does the HKG
government sit ? You already have an overseas government giving what is supposed to be a locally controlled airline that it does not need to be locally controlled, as Canberra okayed it ?
|Quoting 777Jet (Reply 43):|
Sorry, but EK has been flying between Australia and NZ and on the BKK-SYD route for ages - long before the alliance with QF. But I bet you will come up with some technicality to make an exemption for Australia allowing the foreign owned EK to fly internationally between Australia and NZ / Thailand
is not an Australian airlines using the Australian ASA. The Jetstar HKG
application was for a 100% foreign owned entity, 50% owned by Qantas, 50% owed by China Eastern. No local ownership at the time of application, and part of a wider "Pan Asian Strategy" of Qantas. Jetstar HKG
is not an airline that is being setup from HKG
, it was "negotiated" outside of HKG
by Qantas and China Eastern. Sure they incorporated a company in HKG
(anyone can for that same day very cheaply), and office space, and employees. However these are just "puppets" under the JVCA.
China Eastern has lost its appetite, they have now plans for their own LCC.
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