I have been questioning this for months now actually. Is Cathay Pacific committed to the oneworld alliance? I know CX has a lot of codeshare agreements with oneworld members but what I've noticed is that it actually doesn't have any form of JV within the oneworld alliance but rather has reciprocal agreements with Star Alliance members such as Air New Zealand (HKG - AKL) and is cosying up with Air Canada and Lufthansa. Does this mean that CX is more than likely to move to Star Alliance? I would expect CX to have a close tie relationship with BA for routes withing Europe and Asia considering IAG is weak in Asia as is CX in the EU compared to TG and SQ and would also expect CX to have a similar JV agreement with AA and JL for TPAC routes from Japan, Hong Kong and to the US and with MH to Southeast Asia. I know QF and CX are frenemies but I could actually see both airlines benefiting from a JV for Hong Kong and AU flights.
Any thoughts?
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Re: Cathay Pacific and OneWorld?
They can't have a JV with AA (USA and HK aren't open-skies, and haven't modified their bilateral to make any steps toward doing so in the last 15yrs).... so there's that.
If they could, they probably would, and fold rather nicely into the AA/JL/CX triangle; as HKG is the ultimate hub for connecting southeast Asia to N.America; and all the growth potential as that region further develops intercon ties.
If they could, they probably would, and fold rather nicely into the AA/JL/CX triangle; as HKG is the ultimate hub for connecting southeast Asia to N.America; and all the growth potential as that region further develops intercon ties.
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- tullamarine
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Re: Cathay Pacific and OneWorld?
J343 wrote:. I know QF and CX are frenemies but I could actually see both airlines benefiting from a JV for Hong Kong and AU flights.
Any thoughts?
CX and QF will never get a JV approved by competition authorities They dominate AU-HKG routes with only VA's few flights being competitors. There is no way a JV could be argued to be in the travel consumers interests.
CX will probably remain in OneWorld but is probably also coming to the understanding that there is more value in bilateral alliances such as its involvement with NZ. A number of airlines, some members of the main alliances and some not are now actively pursuing these type of arrangements. The major alliances have not created the synergies they originally envisioned and are very expensive to participate in.
Re: Cathay Pacific and OneWorld?
I've love to see DL start an interline with CX, to boost its HKG slights.... though I doubt it'll happen, as there doesn't seem to be much in it for CX, who already has AA and AS stateside. 
Re: Cathay Pacific and OneWorld?
Another thought to consider is due to Cathay Pacific's dominance in HKG, they'll likely struggle to win government approval for a JV with their OneWorld partners that could provide them the most value. For example... CX and BA are the only operators on the HKG-LHR route; the only competition for a CX/QF JV would be a single daily HKG-MEL flight operated by VA; and the lack of open skies prevents them from joining the AA/JL JV. The remaining airlines in OneWorld offer little value to CX which negates the need for a JV.
Re: Cathay Pacific and OneWorld?
J343 wrote:I have been questioning this for months now actually. Is Cathay Pacific committed to the oneworld alliance? I know CX has a lot of codeshare agreements with oneworld members but what I've noticed is that it actually doesn't have any form of JV within the oneworld alliance but rather has reciprocal agreements with Star Alliance members such as Air New Zealand (HKG - AKL) and is cosying up with Air Canada and Lufthansa. Does this mean that CX is more than likely to move to Star Alliance? I would expect CX to have a close tie relationship with BA for routes withing Europe and Asia considering IAG is weak in Asia as is CX in the EU compared to TG and SQ and would also expect CX to have a similar JV agreement with AA and JL for TPAC routes from Japan, Hong Kong and to the US and with MH to Southeast Asia. I know QF and CX are frenemies but I could actually see both airlines benefiting from a JV for Hong Kong and AU flights.
CX is also partially owned by CA (and I think CX has a stake itself in CA).
Re: Cathay Pacific and OneWorld?
CX can be committed to ow while also pursuing outside relationships. Lack of open skies between China and the US very much hampers both sides. And AA partners with multiple airlines outside of oneworld.
Re: Cathay Pacific and OneWorld?
TWA85 wrote:For example... CX and BA are the only operators on the HKG-LHR route
Apart from VS, that is.
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- horizon360
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Re: Cathay Pacific and OneWorld?
TWA85 wrote:For example... CX and BA are the only operators on the HKG-LHR route;
Doesn't VS also operate direct flights HKG - LHR?
Re: Cathay Pacific and OneWorld?
OW needs CX more than CX needs OW. CX is OWs only airline in Greater China, it also fits OWs portfolio of having airlines hubbed in some of the world's largest financial centers (JFK, LHR, HKG, and GRU).
Re: Cathay Pacific and OneWorld?
The oneworld alliance model worked well up until a point but CX is having their ground shifted from underneath them pretty quickly by the plethora of Chinese carriers now flying direct to secondary cities to anywhere; look at the amount of expansion to the US and AU out of China, that and a slowly increasing presence by HX.
CX is smart to do deals with LH Group, NZ etc, it need look no further than their oneworld frenemy QF to see how doing a deal outside of alliances can be to an airline's benefit.
CX is smart to do deals with LH Group, NZ etc, it need look no further than their oneworld frenemy QF to see how doing a deal outside of alliances can be to an airline's benefit.
Re: Cathay Pacific and OneWorld?
I agree and think the idea that alliances are a complete solution is redundant if it ever had currency. And for alliances to remain then airlines need some freedom to explore and enter into arrangements with other carriers to complement their network offering, otherwise customers lose out, and end up choosing to go elsewhere. Air NZ has the same sorts of arrangements in South America and with Virgin and Alaska. There are several such examples and I expect we'll see more into the future. All the more so because of concerns about approvals of JVs within alliances because of its impact on competition on certain routes.
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