Last June, the Hong Kong-based airline Cathay Pacific launched a 4-weekly service to Dublin.
I haven’t looked at Cathay Pacific redemptions since this service launched, so I thought it was worth another look at how you can make substantial tax savings when flying to Hong Kong on Cathay.
From Dublin, a return Avios ticket in Business Class incurs just £160 of taxes and charges. This makes it the cheapest starting point of any of Cathay’s European destinations.
Remember that you can’t use a British Airways American Express 2-4-1 voucher on Cathay Pacific so this strategy is better for the solo traveller or someone who has already used their annual voucher.
Cathay Pacific is a fellow member of the oneworld alliance, alongside BA, so you can redeem your Avios for their flights. Availablity is generally good outside London but note that only some routes have First Class. Availability seems better 2-3 months before departure than further out. The new Dublin route is a three-class service with Economy, Premium Economy and Business Class.
Let’s look at British Airways redemptions first
When booking redemptions to Hong Kong on BA there is one vital fact to remember. Until recently, by law, there were NO surcharges allowed on flights originating in Hong Kong. This did not apply to return legs of flights starting outside Hong Kong.
My understanding is that this rule has now been dropped, but BA has still to implement the change and you can still benefit for lower surcharges.
What this means is that you MUST book Hong Kong BA redemptions as 2 x one-way flights if you want to save money. If you do this, there will be no surcharge on the inbound flight. If you book it as a return flight you will pay a surcharge on the inbound flight.
The snag, of course, is that by booking 2 x one-ways you cannot use your British Airways American Express 2-4-1 voucher ….
The impact of booking 2 x one-way redemptions on British Airways:
British Airways business class RETURN flight, London to Hong Kong – 180,000 Avios + £582
Or when booked separately:
BA outbound – 90,000 Avios + £383
BA inbound – 90,000 Avios + £34
Total – 180,000 + £417, saving £165
These numbers are based on peak day redemptions.
Save a little tax when you fly Cathay Pacific from London
If you choose to fly Cathay Pacific instead of British Airways from London, you will make a further saving:
Cathay Pacific business class (London to Hong Kong): 180,000 Avios + £353
This is £64 cheaper than redeeming on British Airways, based on a peak day redemption, and for a superior business class product.
Ex-Europe is even more interesting
Cathay also flies to Hong Kong from various other European starting points. Dublin is the newest route, but there are plenty of other options.
Cathay Pacific also flies directly from Manchester which, whilst not offering a huge saving on taxes, will be more convenient than Heathrow or Gatwick for many readers.
The tax numbers are very good, as low as £160 return.
Amsterdam to Hong Kong: 180,000 Avios + £171
Brussels to Hong Kong: 180,000 Avios + £177
Dublin to Hong Kong: 180,000 Avios + £160
Frankfurt to Hong Kong: 180,000 Avios + £225
Madrid to Hong Kong: 210,000 Avios + £173
Manchester to Hong Kong: 180,000 Avios + £320
Milan to Hong Kong: 180,000 Avios + £175
Paris to Hong Kong: 180,000 Avios + £233
Rome to Hong Kong: 180,000 Avios + £188
Zurich to Hong Kong: 180,000 Avios + £177
There is no saving if you book Cathay Pacific tickets as 2 x one-ways or as a return. If there is a risk of cancelling, booking a return will save you money on cancellation charges as there will only be one £35 fee to pay.
As you can see, there are some big savings to be made here compared to the British Airways surcharges of £417. You need to factor in the cost of getting to and from your departure airport, of course.
The snag …. off-peak pricing
There is one thing which may make you think twice about Cathay Pacific.
If you book on a peak day there is no difference in the Avios required whether you fly BA or Cathay – it is 180,000 Avios return, apart from Madrid (30,000 additional Avios).
Fly on a British Airways off-peak day and the Avios required falls to 150,000 per person, return, in Business Class. This offsets the saving in taxes and charges.
There are other factors to consider as well. You will obviously need to get to your starting point which will incur additional costs. Depending on the flight times, you may also need an overnight stay. The Dublin flight currently departs at 11am, changing to 11.55am in the Summer, which is pushing it if you want to connect from the UK on the same day whilst building in a big enough buffer in case your first flight is delayed.
Cathay Pacific, of course, has arguably a far superior product as a look at online reviews will show. If you are looking to travel off-peak you need to focus on the better overall experience rather than any cash or Avios saving.
This Head for Points article shows you in greater detail how to redeem Avios points for low-tax flight redemptions on Cathay Pacific to Hong Kong and beyond.
How to earn Avios from UK credit cards (October 2021)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
There are two official British Airways American Express cards. Both have increased sign-up bonuses until 2nd November 2021:
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:
The 30,000 points bonus on Amex Gold runs to 9th November 2021. The 60,000 points bonus on The Platinum Card runs to 2nd November 2021.
Run your own business?
We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card:
You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies. This card has a limited time offer of 60,000 Avios when you sign up:
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
(Want to earn more Avios? Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)