Cathay proposed brand merger.

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  • cwoodward
    Participant

    The proposed brand merger of Cathay Pacific and Cathay Dragon has hit some hurdles in China.
    It looks to me to be once again a protectionist attempt by the Chinese carriers to hinder Cathay Pacific

    https://uk.reuters.com/article/us-health-coronavirus-cathay-pacific-exc/exclusive-cathay-pacifics-brand-merger-hits-roadblock-from-chinas-aviation-regulator-sources-idUKKBN2320BRhttps:

    //news.rthk.hk/rthk/en/component/k2/1528386-20200526.htm?spTabChangeable=0

    1 user thanked author for this post.

    IanFromHKG
    Participant

    I’m not sure I understand the rationale, apart from some small cost-saving, given that Cathay would lose some advantages under air services agreements. For instance, I understand the agreement between India and HK limits flights to two carriers from each territory, which is why CX (with their flat bed business) fly to all the group’s Indian destinations bar one (Bangalore) which is served by KA, effectively locking out any HK competitor airline. Not that there are many viable ones of those any more!


    cwoodward
    Participant

    I’m not at all sure that I understand the rational ether – but there must be one.

    The cost savings of rolling Cathay Dragon into Cathay Pacific must perhaps be more significant than is obvious.

    Cathay Dragon operate under a separate Air Operators Licence than do Cathay Pacific and this has been oft quoted as being advantageous although I have never properly understood why.


    IanFromHKG
    Participant

    cwoodward, I think the one I just discussed is the biggest advantage

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