The markets in Asia are not immune from the global recession.
Two carriers are facing different variations on the challenges.
For Cathay Pacific, there is a general downturn just after they bet the farm on growth from China. At the same time fortress Hong Kong is experiencing a fundamental change which few thought possible. Taiwan - the rebel province is now becoming more important and with the establishment of direct Taiwan-China air services CX is seeing traffic evaporate.
From 18 to 138 flights a week is a huge jump in traffic. And CX is seeing none of it. If it goes to 200 or even higher - same thing. Much of that traffic is new but a significant amount of it is siphoned off from CX.
For MAS - their seminal moment came over two years ago. The new management team has stabilized and now made the perennial sick airline well. And they have come to a modus operandi with Air Asia. Now it is becoming a player in the consolidation. Today talks are under way with Qantas for a joint relationship which could range from code-share all the way through to a JV and even cross equity stakes. (Are you listening BA?)
Different Challenges - Different Worlds - Different Answers
Cheers
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