Cathay Pacific rules out low-cost carrier

Hong Kong-based Cathay will not emulate Singapore Airlines with subsidiary

A few days after Singapore Airlines announced that it would establish a long-haul low cost carrier, the CEO of its competitor Cathay Pacific has ruled out doing the same. His competitor’s decision is “interesting”, he says, but not something his airline is looking to copy. Instead, John Slosar says that he wants to concentrate on growth at Cathay itself.
“In Cathay’s view, our real key goal is to build up our network and our passenger traffic through the Cathay brand,” he said. “We understand very well that in economy class we’ve got to have some pretty sharp fares to get you to purchase Cathay Pacific tickets.”
As reported, Singapore Airlines has announced plans to launch a long-haul, low-cost subsidiary at some point in the next 12 months. It is likely to compete in the Australian and South-East Asian markets. The decision has been described by some analysts as a risky one.
AAP
[pictured: Cathay Pacific Economy Class]