Cathay Pacific must seize the moment and launch a low-cost carrier

If Cathay Pacific is to participate effectively in the tremendous regional growth this decade has on offer, then it is surely time to launch its own low-cost carrier subsidiary. To delay further merely compounds the risk of being left out of one of the biggest ever growth markets. The competitive landscape will see homegrown LCCs Jetstar Hong Kong and Hong Kong Express, as well as unannounced carriers, either private or affiliates of existing carriers, assuming strong positions. Added threats come from the invasion by carriers from Southeast Asia - and increasingly North Asia - that will encircle fortress Hong Kong.

While Asia is still a developing market, the largest growth will come from a handful of carriers positioning themselves now. Cathay is well positioned to stake its claim in one of the region's most blessed hubs: a large financially-oriented catchment area with geography permitting narrowbody flights to much of Asia. Cathay has the experience and clout to capture this low-cost travel growth while it is there for the taking. Better move quickly than eventually be obliged to launch a LCC under duress.