Photo courtesy Cathay Pacific Airways

WITH Cathay Pacific Airways – one of the world’s leading airlines – announcing an 83-per-cent plunge in annual profit, one must begin to wonder what went wrong.

Almost five years since the onset of the global economic crisis, the fortunes of the airlines can be best alluded to the unpredictable movements of the yo-yo. It was only at the end of last year that the International Air Transport Association (Iata) could with some confidence finally revise its profit forecasts upwards instead of downwards: from US$4.1 billion to US$6.1 billion for 2012, and from US$7.5 billion to US$l4 billion for the current year.

Could Cathay be an exception to the rule? For all the hype about product improvement all round including the new Premium Economy class and a new regional business class, the Hong Kong-based airline posted a net profit of HK$916 million (US$118 million), down from HK$5.5 billion a year ago.

Cathay has attributed its poorer performance to a number of factors.

First, higher fuel costs. Cathay reported that throughout much of 2012, fuel prices were at sustained high levels and the Cathay Group’s fuel costs increased by 0.8 per cent compared to 2011. What’s new anyway, when this should similarly affect all airlines across the industry? Yet, in spite of that, some airlines such as Japan Airlines are reporting improved performances. The volatility of the fuel price has been an easy target to blame no matter what degree its impact is on performance. It may not apply to Cathay, but in fact the average jet fuel price had been falling from Sep to Dec 2012 before rising again.

What is more of a concern is the reason for the decline in the fuel price, as explained by Iata chief Tony Tyler: “The reduction in fuel prices is a great thing for the airline industry but they are coming down because of concerns over world economic activity. If the world enters an economic slump, that will be even worse for the industry than the higher fuel price was on its own.”

Second, a drop in demand for corporate travel. This is a more cogent argument as the industry continues to be hard hit by the economic stagnation or slow recovery if at all it is happening, particularly in Europe and the United States. Cathay, which banks on its premium product, is naturally affected more than other airlines that thrive on the low-end traffic.

In a statement issued by the airline, Cathay chairman Christopher Pratt said: “Premium class yields were affected by travel restrictions imposed by corporations.”

Again, this is not a new lesson gleaned only yesterday but widely recognized during the global financial crisis which all but favours cheaper alternatives. Cathay is not alone in this predicament; rivals such as Singapore Airlines (SIA) and Qantas face the same threat.

In a counter-move, Cathay introduced the premium economy class to retain downgraders and attract those who are prepared to pay a little more but not that much more to upgrade to enjoy the frills of an in-between class. It is tempting to conclude that this strategy – perhaps to the relief of SIA which has until now snubbed the idea – is not working judging by the results posted by Cathay, but its full impact is yet to be realised. If the global economy continues to weigh down, it may well prove to be Cathay’s lifeline.

That brings us to the third point as to what went wrong then. Cathay attributes it to increased competition. Mr Pratt said: “An increasingly competitive environment added to the difficulties.” That may be true, but when an airline such as Cathay which is among the world’s most successful carriers resigns to that, it comes across as being somewhat less plausible and lame, and smacks of something amiss.

Competition is a given in this industry. So what has Cathay done or is doing to check the competition? To be fair, it has done much more than most airlines. It has rolled out new product improvements and improved its in-flight service. The airline is ranked consistently among the industry’s favourites, particularly its business class, by air travellers. By all account, its strategy should place it in the forefront of the competition, so what is missing that it should ascribe its falling performance to increased competition? If there’s such a thing as a success formula to suit different environments, has it got the equation not quite right?

Fourth, the weak cargo demand in major markets, particularly from Asia to Europe. No doubt this has affected Cathay’s overall profitability. If it is any consolation, close rival SIA is also similarly afflicted. There are no clear signs that the situation will improve substantially in the near term. In light of the weaker outlook, Cathay has cancelled an order for eight Boeing 777-200 freighters but instead placed an order for three Boeing 747-8 freighters which will carry 16 per cent more revenue-producing freight than predecessor Boeing 747-400. Cathay chief executive John Slosar said the larger airplane would result in fuel savings for the revamped fleet.   

Fifth, high operating costs, especially of the long haul routes that according to Mr Pratt were dominated by “older, less fuel-efficient Boeing 747-400 and Airbus A340-300 aircraft”. Last year, the company announced plans to accelerate retirement of the less fuel-efficient 747-400 as it continues with the fleet upgrading programme for both airlines in its fold – Cathay and Dragonair. In January, Cathay ordered 10 Airbus A350-1000 and converted 16 of its existing order for A350-900 to the larger A350-1000. These 350-seaters will ply high-density routes which include non-stop flights to Europe and North America.

The future should look rosier. Mr Slosar said: “This is an important strategic development for Cathay Pacific. The A350-1000 aircraft will bring us world-beating fuel efficiency.” 

Last, incommensurate cost-cutting measures that include offering unpaid leave to crew and reducing capacity on some routes which unfortunately, according to Mr Pratt, “were not enough to offset in full the effects of high fuel prices and weak revenues.”

And we have come one full circle. So what makes one airline more likely to succeed than another when almost every one of them alike ascribes its failed performance to the same factors?

Mr Pratt said: “Our core strengths remain the same ever: a superb team, a strong international network, exceptional standards of customer service, a strong relationship with Air China and our position in Hong Kong. These will help to ensure the success of the Cathay Pacific Group in the long term.”

Sounds familiar, you may say, except for specific references applicable only to Cathay.

This past weekend we had pretty snowfall, movie reel snowfall, the kind that slows your stroll as you glide through a snowy wonderland. It’s a kind alternative to the blistering wind, freezing ice blizzard of doom. To take advantage of it, my friend Pratt asked if he could take some pictures of me for his site and for ASULike It. Check out BooneLive.com and his own site to see his work. Yay teamwork! Collaborations! Woo!

I never used to like wearing watches – I find them really clunky sometimes. But this Marc by Marc Jacobs watch was a Christmas gift and I thought “well, why not?” Now, I’m a born again watch lover.

These boots are from Goodwill. The first day I wore them the bottom sole ripped clean off. But I loved these $3 boots so much that I bought $7 shoe glue to fix them. The bag is a studded Betsey Johnson that I found at the TJMaxx here in Boone. Yes, someone didn’t want this bag. It sat in TJMaxx long enough for it to go on clearance. I still can’t believe it.

Hope you all have a wonderful Humpday, and remember, for no reason or provocation from this post, the word of the day is “mantyhose.”

I would draw for hours every day, and did so till I left my parents house. I don’t know what happened to pull me away from it. I just focused on something else, I guess. I have been aware of this over the last decade, of course, but it’s almost as if I was done with it. Not terribly interested. The last few times I picked up a pencil or a brush, I felt lost. Almost silly.

Wesley likes to draw.

We spent a fair amount of time at my mothers kitchen table this trip. Watercolours and crayons and markers in hand, not really drawing anything in particular. A lot of shapes. A lot of colour. With no focus on an outcome, we came up with the most beautiful pictures. And lost track of time. And enjoyed being silly. I made us masks out of scrap paper. Wesley mixed his paints and smushed his wet paintings together. I drew a forest with red paint and made his bear mask blue. My cat mask was red. I have a new crush on the colour red.

Later in the week, I am wandering around the The Rooms, the Provincial archives, art gallery and museum. The Rooms towers over downtown St. John’s and it’s third floor cafe looks down upon the colourful row houses and out into the harbour. I end up there every visit, as my best bud works there. Every visit, we have a quick tea, and head to the art gallery for a stroll and a chat.

It’s so nice to walk in the quiet and just take in the work. The permanent collection houses so many beautiful pieces, and I love how Jason reminds me that they are mine. That they belong to the people of Newfoundland and Labrador. He has so many interesting stories and anecdotes from the artists. I feel really blessed to have him to share the space with.

We come upon one of my favourite pieces in the permanent collection. It is by Mary Pratt, an artist from New Brunswick who has spent most of her life in Newfoundland. Famous for her still life realist paintings, Mary was married to another renowned artist, Christopher Pratt for decades. They built a family in Newfoundland and lived in a small outport. They also shared the same subject.

Donna.

Both artists represented this woman in their work, with Christopher drawing her many times over many years. Christopher drew from memory, whereas Mary drew from photographs. This difference breeds such statement in their depiction of this woman.

Christophers interpretations of her are serene and demure, slight dimples at the curve of her back, tight stance and her face turned away.

Donna Washing, 1972. Graphite on Paper, 8 1/2″ x 4″. Memorial University Art Gallery Permanent Collection

Donna Last May, 1976. Graphite on paper, 21 1/4″ x 9″. Collection Mira Godard.

Mary has a different view.

Donna by Mary Pratt 1986 Oil on Panel 89.9 x 70.5 cm

Donna looks straight at the viewer, in full colour, full light. Seated, almost crumpled.

They think differently of Donna. Or they want us to think differently of Donna.

The socks. The socks, or absence of. In Marys painting, the slight indent from Donnas removed socks puts a cast around her leg. She grasps her ankle, and these indents make her so very ordinary.

Specificity is the soul of all good communication.

I adore this painting. It says so much. It’s so raw.

I am glad it’s mine.

It was a bit cool in the morning as we assembled for our on-site demonstration in Trinity East. I used a 3/8″ flat angled brush and worked with a swatch-like approach. I fussed it a bit so I’ll blame the wind buffeting my board and my numb fingers.

It was our last day of painting and a bit of wind and the cool temperature weren’t about to deter this group of enthusiastic artists.

They do manage to find some interesting places to work, don’t they? Also, like every day here, we learned more about the history and culture from friendly visiting locals.

Trinity East has two small harbours and they each offer a variety of inspiring subjects for painting. We could even see the Trinity Light in the distance.

I settled in to a windbreak midday and faced away from the harbour. I got my 1″ flat angled brush and did a watercolour. I only used the one brush throughout the painting. It’s a good challenge to make every mark and shape, no matter how small or skinny, with the 1″ brush.

By the way, that’s the traditional Newfoundland flag under the Maple Leaf. I employed some artistic license and put it on the pole instead of the official flag, which was actually there. I just like it more although the official flag was designed by Newfoundland artist Christopher Pratt in 1980.

Two more batches of paintings and drawings were shown at our end of day critique. I’ve really looked forward to our critiques this week and I think you can see why.

Friday Critique – First Batch

Friday Critique – Second Batch

We followed that with our Final Critique. Everyone presented three pieces done during the week and it was an enjoyable summary of the overall creative experience. We then said good-bye to our lovely and spacious studio, the English Harbour Arts Centre.

Our final, final event was a potluck dinner (clean out your fridges!) at the Sherwood Suites and Motel in Port Rexton. Almost all of the group stayed at the Sherwood and Stan arranged to have two barbecues for our use. I hope the housekeeping staff don’t think that all of the empties came from just two people!

Thanks to all of you for following our exploits in this beautiful part of the world. The scenery is spectacular, the studio and accommodations were excellent and a lot of fine work was done but our most lasting memories will likely be of our daily encounters with generous and friendly Newfoundlanders. Their reputation is intact, as far as we’re concerned.

It is the same woes as faced by other airlines, blaming the instability and uncertainty in the global economy, aggravated by 44.1% increase in fuel costs amounting to HK$12,455 million. The year’s performance was also affected by natural disasters in Japan and Thailand as well as the political unrest in the Middle East. Both Cathay and subsidiary Dragonair carried a total of 27.6 million passengers, up 2.9%, garnering passenger revenue of HK$67,778 million, an increase of 14.2%. This was against a capacity increase of 9.2%, resulting in a fall of load factor by 3.0 percentage points.

Cargo business suffered from a decline in the Chinese (both Hong Kong and mainland China) export market, with revenue increasing by 0.3% against a capacity increase of 6.9%, resulting in a fall in load factor by 8.5 percentage points to 67.2%.While recognizing the likelihood of the economic uncertainties persisting, Cathay remains cautiously optimistic, encouraged by an apparently strong demand for premium class travel. Cathay chairman Christopher Pratt said: “We faced a number of major challenges in 2011 and we are still operating in a very challenging environment, particularly for our cargo business. However, the Cathay Pacific Group has a clear strategic focus and we are moving ahead with a number of initiatives that will make our airlines stronger and provide a better experience for our customers.”

Those initiatives include the delivery of 19 new aircraft in 2012, the introduction of a new premium economy class product, new long-haul economy class and business class seats, improved lounge facilities, and a new cargo terminal in Hong Kong scheduled to open in early 2013.

The fall in Cathay’s profitability did not come as a surprise, following on the heel of similar reduced profitability (or losses) reported by rival airlines such as Singapore Airlines (SIA), Qantas and Malaysia Airlines. The near-term competition would test the different strategies adopted by various airlines to take on the challenges of the time.

Both Cathay and SIA are banking on the growth of the premium market. Malaysia Airlines and Qantas mull over cutting back on capacity, something that is likely to happen with Cathay and SIA which are acquiring new aircraft that will expand their fleet. SIA is launching a medium range budget carrier named Scoot to protect and grow its low-end business while the parent airline focuses on the higher yield premium market. Cathay is already reporting healthy forward booking for its premium economy class, a concept which SIA has decided is not the right strategy for its operations.

Meantime, Qantas is reviving its dream of an Asia-based premium carrier, the plans for which had been plagued by labor problems at home and abortive talks with possible partners last known to be Malaysia Airlines. There is rumor that both parties are back at the negotiating table, but few observers are ready to bet their last dollar on any sign of a fruitful development at this stage.

In these uncertain economic times, it is not unexpected that the players will flip-flop somewhat, yet ironically it is a time that demands a more focused view of the future to move ahead. It is a gamble. And, of course, it helps when backed by a strong balance sheet.

Over the weekend, I watched a 60 Minutes episode on the demolition of foreclosed home in the Columbus, Ohio, area — truly, a great waste – of money, energy, goods; not to mention the foolishness of removing people from their homes which now are fodder for criminals stripping a property for items of a little worth (the guy on the segment mentioned: “They’ve even taken the kitchen sink!”).

So it was with great interest I read about a Vermont man who has been in the business of “redressing” older windows. The story ran in the free weekly newspaper, 7 Days, and was written by Amy Lilly. The company — which is bound to get some much needed publicity, is Open Sash, owned by Christopher Pratt. Amy’s story really tells you all you need to know, so I will let it speak to you – just click on the photo:

Other posts on similar subjects, include:

• Window Envy? (27 Oct 2011)
• Sustain, Repair, Replace (11 Oct 2011)
• Energy Savings – Historic Old Windows (18 Aug 2011)
• Thin-sulate for Winter (8 Oct 2010)

SIA blamed high fuel prices in spite of hedging gains, economic uncertainties and a market affected by the Japanese earthquake and tsunami as well as political unrest in the Middle East. According to SIA, average jet fuel prices jumped 46 per cent, contributing largely to an expenditure increase of 11 per cent that outpaced revenue growth at only five per cent.

However, if that is any indication of the trend, SIA’s closest rivals in the region – Australian Qantas and Hong Kong’s Cathay Pacific Airways – seem to be bucking it. It is likely the volatile fuel price, if it continues to soar, will weigh heavily on these airlines as well, but the question is whether it is to the same extent.

Qantas, which will be announcing its results later this month, expects to post better-than-expected pre-tax profit of between A$500 million and A$550 million for the year ending Jun 30 2011, which covers the dismal quarter reported by SIA. This is boosted by a windfall of A$95 million as compensation from engine-maker Rolls Royce over a mid-air blast incident that led to the grounding of the Qantas A380 fleet. Note that Qantas too has its share of flight disruptions from a string of natural disasters; besides the earthquake and tsunami in Japan, there were the floods in Australia, earthquake in New Zealand and more recently Chilean volcanic eruption.

Qantas chief executive Alan Joyce said in a pre-emptive statement: “Considering the challenges facing the aviation industry, this is a very good result.”

Cathay posted record profits last year, overtaking SIA as the world’s most profitable airline. The Cathay Group recorded an attributable profit of HK$14,048 million for 2010, up from HK$4,694b million the previous year. At the time of the announcement in Mar this year, Cathay chairman Christopher Pratt said: “Demand is expected to remain strong in 2011, but this expectation could be undermined if the current (or any higher) level of oil prices were to reduce global economic activity.” It is to be seen if Cathay would suffer as much the same downturn as SIA.

In any case, what could be ailing SIA much worse than its rivals?

For one, the downgrading of air travel and slow recovery in premium travel continue to impact SIA. In the heyday of booming business, SIA was the doyen of premium travel. While that is gradually returning, the spread seems to be thinning out among the competition. At the same time, economy class travel has become highly price-sensitive, enabling the encroachment of budget carriers on the turf of full-service airlines. That has driven SIA to finally decide to set up its fully-owned budget subsidiary – in addition to Tiger Airways of which it already has a 32.9 per cent stake – to commence operations within a year.

Here again, SIA`s decision may have come late, losing out on time that had helped Qantas push the Jetstar advantage across the region. There is already a slew of other budget carriers, including Asia’s largest operator AirAsia which has also ventured into the long haul under the AirAsia X banner. Cathay has said it would not follow in the footstep of SIA but would instead introduce a premium economy class to cater to downgraders. Yet, perhaps, better late than never.

Then again, while SIA has assured its customers it will not happen, will it lose focus in its effort to manage a stable of four diverse airlines – SIA itself, SilkAir, Tiger and the new budget subsidiary – offering different products and service levels?

Full-service airlines that have sired budget subsidiaries – United Airlines and TED, Delta Airlines and Song, Continental Airlines and Lite, Air Canada and Zip, British Airways and GO, Scandinavian Airlines and Snowflake, to name a few – hardly succeed as ultimate champions on both fronts. With a veritable record of excellence, can SIA prove its prowess otherwise?

SIA’s growth appears to be hampered by the maturity of its traditional markets while Cathay continues to enjoy its gateway advantage to the vast Chinese market. Airlines such as Emirates, Etihad and Qatar Airways have intensified the competition in the Middle East. Qantas is pushing into growth areas beyond the Australian borders, through Jetstar and its intention to further utilize Singapore (which it has been doing for many years) as its base to extend its network.

SIA may find the competition becoming increasingly more challenging in the context of Singapore’s liberal open skies policy that has Changi Airport as its priority – SIA’s growth in recent years has been far below that of the airport.

The SIA management knows very well it is under pressure to find new initiatives to support its growth. The new budget subsidiary is first turf protection; growth may come after. With new leaders at the helm, can we expect more of the magic that has so successfully set SIA apart from the competition?

If it is any consolation, analysts who did not expect the steep decline in SIA’s 2011/12 first quarter’s profit are optimistic it must get better the next quarter. That sentiment speaks a lot about the confidence the industry has in the airline.

I’ve often heard that if two people live together long enough, they begin to look like each other. I wonder if perhaps the same is true of musicians and their instruments?

I shoot live shows and promotional images for local bands and artists on the Nashville music scene. Both as a fan and a photographer, I find myself focusing on how someone makes their sound. During the editing process, I began to notice a violin players hands, for instance, looked very different from most banjo players and both looked nothing like the typical hands of a DJ spinning records or MC holding a microphone.

Maybe it’s because a certain type of person is drawn to a certain type of music and somehow their lifestyle reflects that in their hands. Who knows? I will just keep watching, listening and shooting what I see.

Click here to visit Christopher Pratt at Image & Concepts Photography in Nashville, TN.

Still, I’m tempted to try horror next. Purely because of a shoot I just wrapped in Muscatatuck, Indiana. Don’t get all insulted, Hoosiers, this isn’t a statement about your state. It’s just that one of the premiere military training centers in the world also happens to rent out its facility to filmmakers. The Muscatatuck Urban Training Center, which used to be a state mental asylum, is literally a 1,000 acre Disneyland of Disasters. All the old, art-deco hospital buildings double now as “embassies” and other “assets” military types need to train to defend.

They call it a full-immersion contemporary urban training environment. Which means they’ve built things like parking garages that collapse on command, to practice difficult urban search and rescue techniques. There’s an oil refinery that can explode at the push of a button, a pre-flooded suburb, and 1,866 feet of tunnels dug under an old prison.

While we were there shooting a project for FEMA, so were the Israeli Defense Forces. That’s how cutting edge it is. But what fascinated me the most was the creepy factor. There’s a haunting, man-made reservoir on the border of the property, surrounded by deep woods and FEMA trailers. Yes, the post-Katrina kind rejected for mold issues and now deemed toxic. We four-wheeled through the woods on Kubota go-carts only to find a trailer graveyard, doors swinging open with scary creaks.

Then there’s the Mental Hospital Museum. We used it as headquarters for our shoot, trying to ignore the 1950s–era instruments hanging from its walls. Hard to do when your laptop is set up under a straight jacket, very Silence of the Lambs. Even better is the automatic spoon machine used to feed the patients in the jacket. I couldn’t resist this photo.

The director says when he was charged with curating the collection, it looked as if all the patients up and left in the middle of the night. (note – there is an unmarked cemetery right off base…hmmm) He says you could get the place up and running again in a couple of months – if there was ever a need to return to mid-Reagan-era mental healthcare. Which is, of course, when mental patients all over the country  were booted out to fend for themselves. See, I wasn’t kidding about the horror part.

Only if it was a movie, you could happily munch popcorn while you scream. Even the logo works. “Defend the homeland. Win the peace. As real as it gets.”

The choice seems obvious: Is it Singapore Airlines (SIA) or Hong Kong-based Cathay Pacific Airways?

SIA is achieving an impressive load factor of more than 80 per cent. in June. Growth for passengers carried continues to outstrip capacity growth, achieving double-digit improvement. By all counts, the airline is heading back into profitability after losing S$39 million last year, encouraged by advanced bookings and recovery in demand for business class travel.

Yet it looks like a subdued year ahead for SIA. This seems quite out of character that the airline, which was used to making headline news of bold and unprecedented moves, should be treading so cautiously.

SIA intends to keep a lid on capacity to improve the breakeven load factor. Even when there is an apparent crunch on seats, the airline is not demonstrating much of its erstwhile conviction that capacity will create demand – a familiar battle cry when it was actively pushing for open skies. In the current year, the SIA fleet will show a net increase of only one aircraft, totaling 109.

So far, the only new product development that SIA is rolling out is an electronic version of its three inflight magazines – Silver Kris, Kris Shop and KrisWorld. The initiative will later be extended to cover menu cards, newspapers and other magazines. It is a commendable move to be saving the environment while the airline will also save fuel from the reduced weight.

Rival Cathay is also upbeat about its future. Performing better than expected in the first six months of 2010, analysts are forecasting a record full year. The airline posted a net profit of HK$6.84 billion – its best-ever six-month performance – up from HK$812 million a year ago. Passenger numbers rose 8.5 per cent to 13 million.

By comparison, SIA carried 4 million passengers in the first quarter of financial year 2010/11.

Cathay will be boosting its 166-strong fleet with new orders of up to 30 A350-900s from Airbus and exercising purchase rights to acquire another six B777-300 ERs from Boeing – for fleet replacement as well as for growth. Herein lies a distinct divergence in the strategies of both SIA and Cathay. The former subscribes to the larger A380 while the latter prefers the smaller aircraft which can be deployed to secondary cities in Europe and the United States where demand is insufficient to fill larger planes.

Both airlines recognize the lingering uncertainties in the near term. SIA chief executive officer Chew Choon Seng said: “We are not out of the woods by a far stretch.” Cathay chairman Christopher Pratt warned: “Our results would be adversely affected, and very quickly so, by a significant further increase in fuel prices or any return to the recessionary economic conditions of 2008 and much of 2009.”

However, Cathay seems more ready to embrace behavioral shifts in the industry. While SIA stakes its optimism on the rebound of premium class travel, Cathay is deliberating on a possible launch later in the year of a Premium Economy class which it sees as a new opportunity to win business from competing carriers. Cathay chief executive Tony Tyler told Bloomberg: “There are pretty good arguments for it.”

In shrugging off the concept of a middle class between business and economy, is SIA marginalizing itself as a niche premium player?

Think back to when the business class concept was first introduced. Then, reputable airlines such as Swissair and Japan Airlines were slow to accept it. In fact, the Swiss carrier pooh-poohed the idea. Today, many airlines are shedding first but increasing the capacity for business.

Premium economy is not a new concept. However, considering the widening gap between business and economy, and the increased price elasticity of demand, some carriers are beginning to see new opportunities in its introduction. Air New Zealand has earlier announced its version of this subclass – the Skycouch.

No doubt SIA will continue to thrive on its superior inflight service, especially in the front cabins, though the same cannot be said of its ground support. This, however, will be challenged by the market’s price sensitivity within a comparable range.

At a time when the aviation industry is taking a backseat in product development, Cathay is stealing a march on SIA to bring some excitement back into the business of flying. It has announced plans to fit its entire fleet (including Dragonair services) with full broadband Internet access, a mobile phone service and live television by 2012. While this looks set to be an inevitable global trend, the PR plug in these insipid times is being first.

Other airlines known to be also updating their fleets with WiFi systems include Delta Airlines and Virgin Atlantic Airways.

SIA used to boast Connexion by Boeing in first and business class on some routes – WiFi connections that allowed passengers to surf the Web, send and receive e-mail and view broadcast TV channels. But that was discontinued. A spokesman of the Singapore carrier said the airline is looking into WiFi reintroduction.

While Cathay takes big strides ahead, the industry is waiting to be surprised by SIA. For now, the latter seems more intent on consolidating its position after the global recession. But it is not one known to be shy after being bitten. Or has it become so?

Cathay operating from the doorstep of China will enjoy plenty of potential for growth. However, SIA has never been discouraged by geographical disadvantages. It will need to step up product innovation to stay ahead of the competition, and demonstrate why not only is it still a great way to fly but also great value for its fare.

(Click on image to blow up detail)

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