M1
Assisting the Airport Authority Hong Kong to press ahead with planning for a three- runway system. The project, estimated to cost over HK 100$ billion (12.9billion), will foster long term economic development.
This could go several ways. Here are the advantages of this. Firstly due to this expansion this could increase the sales for Cathay and due to this an increase in their profits. If Cathay are able to gain more profit this will be a huge benefit for Cathay.
There are some downsides to this new rule and some of the reasons why Cathay might not be well suited with this new rule. This will most likely cause Cathay to spend more on new planes, pilots and staff. Also it takes a long time for planes to be made around 2 to 3 years. This will be seen in a long term investment. They would need more staff and pilots due to the increase of flights and planes so this will increase costs which will take a chunk out of Cathay’s profit. This new rule will also lead to an increase in competition with airlines such as Air New Zealand and Emirates.
The ways Cathay will react to this new law is to lower price and cut as much costs as they are able too. They got fire ground stuff because they are not that important and Cathay would not face loss without them. Cathay will try to increase advertisement and brand awareness such as hosting the Rugby 7s. They would also try to advertise their new routes so they will be able to raise brand awareness.
Overall this new law might go two ways good or bad for Cathay as long as they are able to capture their market they will do just fine. Since there will be more flights there will be more sales so I feel Cathay will be able to break even with their costs and everything.
Scenario 2
Tuen Muen Chek Lap Kok link
Airport becomes more accessible
More demand for flights More Demand for China Flights
More profit
More Spending
Reactions from Cathay
Online check in means an increase in speed
Scenario 3
High speed Rail
Competition means more customers choose to take the train rather than flying
The competition will affect Southern China
Cathays reaction
Cut Prices
Improve security process
Change Focus to other routes and advertise