Cathay Pacific, in the Jan-2011 edition of CX World, stated traffic in the Chinese New Year peak is anticipated to be down on last year due to the holiday being closer to Christmas and the strength of the yen dampening demand to Japan. However, GM Revenue Management Tom Owen stated the "quality of the booking has improved over 2010". He also stated that for 1Q2011 "a lot will hinge on the strength of Chinese New Year and how the traditionally slower months of February and March develop". "Competitors are getting increasingly active and there is a lot more capacity to fill than last year," Mr Owen said. Meanwhile, there are signs that premium traffic "will continue to hold up well across most of the network" although Mr Owen noted that the quality of demand in the economy cabins on Africa, London and European routes is "becoming a challenge early on this year". The carrier's freight operations reported a stronger-than-expected Dec-2010 as it benefitted from competitors cancelling services. However, cargo has been "quiet" in the first half of February - as a result the carrier is reducing its core schedule to allow heavy maintenance on freighters. The carrier has emerged from 2010 with its business "in good shape" with COO John Slosar stating he is "reasonably confident" about prospects for 2011.
Cathay expects Chinese New Year traffic to be down on 2010
You may also be interested in the following articles...
Finnair and TAP Portugal: their location based long haul niche strategies compared
Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.
airBaltic: the hybrid LCC punches above its weight; back to growth and positive EBIT in 2016
For Latvia's national airline, 2016 was a pivotal year. Riga-based airBaltic completed a multi year restructuring programme, increased its passenger numbers for the first time in five years, secured a capital increase and a private investor, and became the launch customer for the Bombardier CS300. On 28-Mar-2016 it further celebrated its successes by announcing a return to positive EBIT, alongside a net profit, for last year.
It has achieved its turnaround in the face of strong competition from foreign LCCs, justifying its positioning as a "hybrid LCC". Data provided to CAPA confirm that its unit cost level is also broadly consistent with the LCC tag. It is now seeking further investment from a strategic investor – preferably another airline. It also faces a decision about the replacement of its Dash 8 turboprop fleet.
AirBaltic CEO Martin Gauss told CAPA that the airline plans for passenger growth to accelerate from 12% in the past year to 16% in 2017, taking traffic levels back above 3 million passengers. For an airline based in a country inhabited by only 2 million people, this suggests that airBaltic has been making some judicious network decisions.