Alliance with China Southern in Oneworld ‘could help Hong Kong’s Cathay Pacific’

China’s biggest airline’s potential move to the same industry alliance as Cathay Pacific Airways could help, rather than hinder, the Hong Kong carrier, experts have said. And the fact that China Southern specialises in trips within mainland China, while Cathay Pacific flies further afield and is struggling against cheaper mainland carriers, could mean a boost for both if they teamed up, they said. Cathay Pacific has weathered two years of annual losses, most recently losing HK$1.25 billion in 2017. Analysts said last week China Southern’s recently announced exit from Skyteam and mooted move to Oneworld could threaten Cathay Pacific. But the prospect remained of the two nearby airlines – based in Guangzhou and Hong Kong respectively – complementing each other inside the same grouping. Junhao Kuang, editor of Guangzhou-based research group FATIII Aviation, said that – given each airline’s respective strengths – the pair were not really rivals at all, and both had more to offer each other, were they to cooperate. “I don’t think China Southern wants to compete in the premium market with Cathay, Singapore Airlines and Qatar Airways,” Kuang said, adding that China Southern, while huge, did not focus on lucrative business travellers as Cathay did.<br/>