“Quite similar to AirAsia, [the thinking is to] use ‘Cathay’ as a brand, and under Cathay there are many sub-brands, and Cathay Pacific is one of them”.

The first sign of the company’s attempts to broaden its business appeared late last month, with a short video sent to customers promising to “elevate your Cathay experience”.

The 20-second advertisement shows various lifestyle items including a smartwatch, luggage, shoes, headphones, dumbbells, a bottle of wine and a “please make up room” hotel door sign.

At the end of the video, the name “Cathay” is displayed without “Pacific” – stirring speculation of an imminent rebrand at the financially strained company, which is not the plan.

Part of the push appears to be tied to the relaunch in July of its lucrative co-branded credit card, which, according to what the airline has told customers, will offer more perks centred on lifestyle and travel.

The move to explore new areas comes as the airline deals with a collapse in passenger revenue brought on by the Covid-19 crisis. 

With the pandemic forcing borders to shut, resulting in a travel downturn, Cathay Pacific’s income from passenger flights plummeted 84 per cent last year. The collapse contributed to the airline’s HK$21.6 billion loss in 2020, a year in which it avoided collapse thanks to a HK$39 billion government-led bailout and an overhaul that resulted in thousands of job cuts and the closure of regional airline Cathay Dragon.

It is unclear if Cathay Pacific is planning to invest in launching its own line of businesses, or leverage partners to increase transactions for goods and services.

The effort was being spearheaded by the airline’s executive director Ronald Lam Siu-por, a person familiar with the matter said.

Lam, seen as a front-runner to succeed CEO Augustus Tang Kin-wing, has spoken of treating Cathay Pacific as a retail service rather than an airline, with the carrier just one component of many.

AirAsia’s shift beyond the airline business has focused on better harnessing customer data – which it has used to sell an array of products and services.

Hong Kong plans to renew visas of expat Cathay pilots, but exclude foreign cabin crew

Simon Lee Siu-po, a senior lecturer at the Chinese University of Hong Kong’s business school, pointed to the efforts of airlines to better use customer data.

“If a person is willing to spend more money travelling business class, it means something. The data, the consumption and spending pattern can be converted into hotels, retail spending. It is so useful to know the lifestyle of a person and the lifestyle indicates something,” Lee said.

Independent aviation analyst Brendan Sobie said the trend to diversify started among airlines before the pandemic and had now accelerated.

“AirAsia is definitely one example, and with them it’s such a big push that the airline is almost becoming secondary, as they focus on a super app and selling everything, including flights on other airlines,” he said.

“It would be natural for Cathay Pacific to follow this trend and, like the others, we will have to see if it succeeds.”

Airline loyalty expert Mark Ross-Smith said Cathay Pacific was in a “unique market position whereby they have an opportunity to re-invent themselves in a more relevant, meaningful” way for customers and for aspiring fliers.

The business diversification at AirAsia, Ross-Smith said, was so significant that AirAsia.com could consider rebranding to just Asia.com given its interests beyond airlines.