Cathay to maintain job levels, cut cargo as it negotiates downturn

Cathay Pacific Airways CEO Tony Tyler confirmed to ATWOnline at this week's oneworld anniversary event in Madrid that the carrier has no plans to lay off employees despite the current downturn and repeated profit warnings.

It is, however, making small changes in order to weather the storm (ATWOnline, Jan. 8). "We have already parked two freighter aircraft. If necessary more will follow," Tyler said, ruling out the grounding of any passenger planes. Last month, the Hong Kong Airport Authority agreed to let CX delay completion of its new cargo terminal by two years until mid-2013 (ATWOnline, Jan. 16). It also has been trying to sell five 777-200s, but that effort has hit a snag. "We found a buyer, but it is not able to finance the aircraft anymore," Tyler said.

The carrier still enjoys an average load factor above 80% throughout its network, "but unfortunately we see a decline in first and business class." He does not expect a major Asian airline to go bankrupt; "Most of them are government owned. They don't want them to fall apart."

CX will continue to focus on its Chinese network, which is well covered through its Dragonair subsidiary. It has no plans to fly from mainland China to the US or Europe. It still has long-term plans to acquire either the A380 or 747-8 but has established no timetable.