Originally Posted by
Elvis90
Deregulation in 1978 changed the dynamics for US carriers, going from six majors legacies to three today (Eastern TWA, Pan Am, United, Delta, American --> United, Delta, American), along with the rise of low cost carriers. Legacies have changed business models to compete with low cost carriers, because people vote for services with the tickets they buy.
I'll mention Cathay and Singapore - they're confronting an LCC revolution in their sphere of the world, and they'll have to be responsive like the surviving US legacy carriers.
Cathay Pacific must seize the moment and launch a low-cost carrier | CAPA - Centre for Aviation
Delta has met the challenge successfully, earning $34B in revenue with likely record profits this year.
Indeed, DL have done very well recently. I'm not for a moment saying the profitable road in the US is not to compete with the LoCos. I'm merely observing the impact on customer service.
Loco presence has been established in the Far East for a long time. I've seen that article, and a great many that claim the opposite. CX's CEO has steadfastly stood by his opinion that CX will not launch direct LoCo competition. There are 2 based at HK right now, and Jetstar coming. There are several LoCos operating in and out, but still they don't seem to be doing much to change the mind of CX management.
Like I said, you role the dice, and follow it with some conviction. It will be interesting to see what happens when Jetstar HK shows up. Some claim it will impact yields, others say CX has the balance sheet to school them. Oasis lasted a year, HKA essentially are scrapping their routes which compete with CX on, starting with the longest first, etc. it's very dynamic.