Cathay Pacific, high cost and pilot-constrained, promotes regional unit Dragonair to reduce costs
Asian airlines have long had second brands, often for a regional airline flying to secondary markets. For equally as long airlines have struggled with how to work the brands in sync – somewhere between fully aligned with the flagship parent and full independence. This is starting to change, with the most prominent example being Cathay Pacific's change of Dragonair's branding to Cathay Dragon, effective 21-Nov-2016. Product too has already been largely aligned.
Dragonair has expanded out of its mostly China niche to take over Cathay's Penang service and launch flights to Denpasar Bali and Tokyo Haneda, supplementing Cathay services and giving the two a larger group presence. The boldest move yet is Dragonair taking over the Kuala Lumpur route from Cathay in 2017. Cathay will transfer five A330s to Dragonair, more than what is needed for four daily Kuala Lumpur flights, indicating that more transfers are likely.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.