Already, Japan Airlines (JL), China Airlines (CI), and EVA Airways (BR) have matched the offer, and other airlines may follow suit.
In Kuala Lumpur, Cathay offered a US$480 package for two to Hong Kong, including return air tickets and three nights in a hotel. Similar offers are available in Singapore, Japan, Taiwan and elsewhere in Asia. The US$3.5 million advertising campaign attracted 30,000 bookings in its first five days, said CX managing director David Turnbull. The promotion runs from January 1 to Feb 15, although the booking period ended earlier.
Turnbull said the Super Offer fares will not make money for Cathay, and CX is not trying to start a price war. "This is not an attempt to slash air rates, and it is not an attempt to grab market share," he said. "It's to kick-start tourism to Hong Kong."
Nonetheless, JL, CI and BR all cut their fares to Hong Kong, and other airlines may follow suit. Fumio Hattori, JAL senior vice president Asia, said JL's discounts are not a response to CX, but a response to market conditions. Tourism to Hong Kong from Japan has dropped 60 per cent since June 30, he said. Tourism from Taipei, the key market for CX and CI, has fallen as well. "We have had a lot of empty seats since June 30, and a seat is a perishable commodity," said a CI executive. CI is offering two tickets for the price of one for the period of the CX promotion.