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Asia’s flag carriers have found different ways of coping with the threat from the growing fleet of low-cost rivals. Some, such as Japan Airlines and Singapore Airlines, have bought stakes in these upstarts or, in the case of Qantas, developed their own. Eva Air has decked out its planes in Hello Kitty livery. Cathay Pacific has chosen another path: focusing on premium business and tight cost control. Is that enough in an industry it admits is volatile and will always be highly susceptible to external factors beyond its control?