Cathy Pacific Airways was founded in 1946, it is an international airline based in Hong Kong, offering scheduled cargo and passenger services to over 170 destinations around the world. The company is the industry's one of the few 5-Star Airline and be awarded the World’s Best Airline over years. It vision is to make the airline the most admired in the world, ensuring safety comes first; deliver service straight from the heart; provide outstanding product and service; produce superior financial returns and fulfillment corporate responsibility.
2. About the New Brand
International Air Transport Association estimates the number of people flying in Asia will rise by 360 million to one billion in 2014. The market share of low-cost carriers (LCCs) in Asia might double over the next five years from the current 25 percent. Many conventional airlines started to creating multiple brands under one umbrella to entering budget market, such as Singapore Airlines creating SilkAir, Scoot; Thai Air with Thai Smile; and All Nippon Airways with Peach Aviation.
LCCs rise of threats to the survival space of conventional airlines. Cathay Pacific except need to think how to preventing loss conventional airline sectors, they should also build a new brand catching budget-airline market as new revenue growth point.
The new brand suggested to call “Wonder Air” that is a LCC based in Hong Kong and targeting budget market. The name is hoping every passenger able to experience wondrous service even if the LCC also feel the quality is beyond the value. The slogan of Wonder Air is call “Your Unexpected Journey”, every trip is also different and do not know will encounter what things, but the slogan want to convey messages is Wonder Air will do better to make passenger feel that is totally different journey. The company initially will fly short-distance routes in Asia, including in China, Japan, South Korea and Southeast Asia. The new airline will consider market situations to launch long-haul flights to Europe or North America.
The mission of Wonder Air is to become a quality budget airline change the images of low-cost carrier in people’s minds, offer safety and comfort journey with low fares no matter how far away, as well as committed to going green from cabin inside to outside.
3. Target Market and Competitor
Wonder Air is mainly targeting Hong Kong’s resident, but the mainland market may become the next growth point in future with the people income increasing. If the fares not difference a lot of compared with domestic travel, the foreign travel should be the trends.
Hong Kong International Airport (HKIA) recorded the first 11 months of this year, passenger traffic climbed 4.8% to 51.5 million, and the Hong Kong resident travel was growth a 12% rise over the same month last year, it directly reflects people’s travel desires. Hong Kong was a major Asian travel hub, with about 40 million passengers a year. It is estimated that the air travel market per year in mainland China, Hong Kong and Taiwan nearly 300 million passengers grow to 450 million in 2015. But the Spring Airlines is the only budget airline in above place.
Hong Kong will have a great opportunity in coming years. Due to some infrastructures like Express Rail Link and Hong Kong-Zhuhai-Macao Bridge (HZMB) will estimate completion in 2015 and 2016. With the project completion, the LCCs except serves for local passenger, it can also attract the around areas and China southern cities resident travel to other countries. Because the Express Rail Link and HZMB will significantly reduce the distance between many mainland cities and Hong Kong, and materialize the concept of a one-hour living circle within the Pearl River Delta area.
Many competitors planned to enter the Hong Kong’s budget airline market and catch this segmentation. Qantas of Australia and China Eastern Airlines announced they are forming a LCC in Hong Kong in 2013...