Just last week, Cathay Pacific reported a net loss of US$74 million for 2016 and announced that they will be undergoing restructuring and taking up cost-cutting measures. It is reported that Cathay Pacific plans to reduce 30% of their staff costs at its Hong Kong head office as part of the restructuring. According to Australian Business Traveller (ABT), there were about 59,000 passengers travelling in and out of Melbourne to Hong Kong. This load is shared between Cathay and Qantas – both oneworld members.
This week, Virgin Australia revealed their new route between Melbourne and Hong Kong from 5th July. There will be 5 return services a week on their A330-200 aircraft fitted with their award-winning business class seats.
Currently, competitions from Chinese carriers are rife because of the open-skies agreement between China (Beijing, Shanghai, Guangzhou) and Australia (Sydney, Melbourne, Brisbane). Air China, China Eastern and China Southern are operating between these cities.
It will be interesting to see in the coming months how all these carriers will be playing out. Fares into Asia will no doubt be getting more and more expensive.
