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

  • Mainland China’s biggest airline plans to leave Skyteam alliance, sparking speculation it will join Oneworld
  • That would leave the Guangzhou-based carrier on the same side as its near neighbour in Hong Kong

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Will China Southern join the Oneworld alliance? Photo: Edward Wong

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.

Major airlines are in one of three global airline clubs – Skyteam, Star Alliance and Oneworld, of which Cathay Pacific is a key member. Airlines’ frequent flier members can use points collected with one carrier across its alliance, and benefit from a wider variety of destinations on one booking. Code-share arrangements between the allies are common.

Cathay Pacific has weathered two years of annual losses, most recently losing HK$1.25 billion in 2017. One of Asia’s premier airlines, it has faced intense competition from mainland carriers, low-cost airlines in particular.
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.
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