Possibly one of the more significant new routes to be opened this year so far, Hong Kong Airlines is challenging Cathay Pacific head on with a four times a week service.
Using the same aircraft type, A359’s, employing a celebrity chef designed menu, prices are up to 30-40% lower in certain fare classes than Cathay can hope to charge.
Admittedly there’s no doubt the Cathay experience is a superior one, but is it 30% more of an experience for the money? In the case of most airlines the answer is going to be no.
And that’s the fundamental challenge that legacy airlines face around the world. Your prices have to reflect something so much better – if not, a rapid migration to the competition is inevitable.