Cathay Pacific
Autor: Ming_Wong • December 30, 2013 • Case Study • 272 Words (2 Pages) • 1,274 Views
Cathay Pacific is better to manage cost than Singapore Airlines .In 2009-2010,cost base was under Singapore Airlines .Costs will be go down further as the group re-fleets. Whereas Singapore Airlines went through a re-fleeting in last .But Cathay Pacific has seriously moved to replace ageing and costly 747-400s . This is challenging for Singapore Airlines as outside of its cargo division and withdrawal its five A340-500s , there are few opportunities to improve fleet efficiency .The withdrawal of A340-500s should drive a reduction in Singapore Airlines as these aircrafts are used exclusively on all premium non-stop services to Los Angeles and Newark ,which will be dropped as the aircrafts are returned to Airbus .But Cathay Pacific in a one time reduction able to continue to reduce costs as its fleet renewedYield advantage & stronger load factors Cathay Pacific vs Singapore Airlines
Started in 2006 ,Singapore Airlines achieved stronger yield than Cathay Pacific .But Singapore Airlines stronger yield is offset by Cathay Pacific ‘s load factors ,that has been higher than Singapore Airlines in all .Cathay Pacific has reached yields around level of Singapore Airlines by having less aggressive price and flying fewer low yielding passengers .Cathay Pacific are better positioned to capture huge Chinese growthCathay Pacific ‘s positioning at the first foot of China is suited than Singapore Airlines to serve China and connecting market .Cathay and its Dragonair subsidiary are that largest and international foreign carriers in China compared with Singapore Airlines .As below of table listed figures to compare among Cathay Pacific and Singapore Airlines .
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