The onslaught of Asian budget carriers is doing more to hurt Cathay Pacific than Singapore Airlines, recent analysis by Bloomberg shows.
Both airlines have been affected but Cathay has been worst hit, with its stock falling 41% over the past 12 months. In the same period, Singapore Air has lost 4.8%.
Bloomberg quotes an expert who says Singapore Airlines’ low-cost-carrier units Scoot and Tiger Airways both show “tremendous growth”. They benefit the airline and are something Cathay doesn’t have.
A graph shows the distinction graphically. See it here:
Written by William Sykes