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Cathay Pacific Observations


Dali

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[color:"green"] Service is still good, just not up to the level I remember from a couple of years ago. The biggest disappointment was the food. [/color]

 

This is sad since the cost difference for the airline is small between serving good food and poor food. :doah:

 

You should complain so they get some feedback.

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Hi Dali,

 

I enjoyed my last Cathay flight (BNE-HK), but that was over 12 months ago, which is a *lifetime* in the aviation industry. There is little doubt that intl airlines are *all* feeling the pinch post 9/11, SARs and increased competition on every major route, so I'm not overly surprised to hear that the standard has dropped.

 

Whilst both Singapore and Cathay employ reasonably attractive FA's, they are mostly plain janes compared to some of the gals on the domestic routes in China. They make the fact that the 'meal' is cardboard seem completely irrelevant :)

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BuBi,

 

That's basically correct. But unless Emirates most other airlines are commercial enterprises and NOT HEAVILY subsidized by governments. Emirates is 100% state-owned or better said owned by the ruler of Dubai. They do not have to watch their cost. The operational results of Emirates are negative but it doesn't matter. The Sheik is paying out of his 'pocket money'. Lucky Emirates - as long as the oil is flowing.

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jp1 said:

BuBi,

 

That's basically correct. But unless Emirates most other airlines are commercial enterprises and NOT HEAVILY subsidized by governments. Emirates is 100% state-owned or better said owned by the ruler of Dubai. They do not have to watch their cost. The operational results of Emirates are negative but it doesn't matter. The Sheik is paying out of his 'pocket money'. Lucky Emirates - as long as the oil is flowing.

 

They must watch their costs somewhat because they made a profit according to their last annual report.

 

Every major international carrier I know is subsidized by their government in some form or fashion(contracts,tax breaks,direct investment,debt guarantee,etc),some are subsized more than others but nonetheless they are all subsidized.

The US carriers received a huge federal bailout post 9/11 even though they were all bleeding money and overleveraged prior to 9/11 and used 9/11 as an excuse for their incompetency.

A couple of major carriers even declared bankruptcy which if you truly look at it is a type of a subsidy- the law with the guidance of a BK court allows you to not pay billions of dollars in debt and wipe out shareholder equity, then re-organize yourself into an entity with a clean balance sheet. Of course BK is a little more complicated but essentially that is what happens.

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Every major international carrier I know is subsidized by their government in some form or fashion(contracts,tax breaks,direct investment,debt guarantee,etc),some are subsized more than others but nonetheless they are all subsidized.

 

JJ,

 

I have to correct you on this subject. Unless some American carriers that receive subsidies (bailouts) from the US government most Western European carriers receive nothing. Here are a few that are entirely exposed to market forces:

 

British Airways, KLM, Lufthansa, Austrian Airlines, Scandinavian etc. The situation is slightly different with Air France (they are given cheap or interest free loans by the gvmt.) and Alitalia. :)

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Hi JP,

 

I can only assume that Royal Brunei are subsidised by their patriarch, the Sultan of Brunei ? They must be getting it from somewhere - for most of the Asian legs out of Oz, they seem to have the cheapest fares, but most people opt for more direct flights. I'm told that the Sultan has a nice little city, but its not exactly the excitement capital of Asia, despite some wild spending over the years.

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