Faced with “disappointing” financial results for the first half of 2012, Cathay Pacific (CX) has announced a series of measures to cut costs and adapt to the “challenging business environment.”
Belt-tightening efforts for both CX and its subsidiary Dragonair include reducing frequencies on some long-haul routes to North America and Europe in response to high fuel costs, while “increasing capacity and introducing six new destinations in its regional network." Destinations in Mainland China, particularly, will see increased frequencies with new routes on the horizon for Dragonair. However, specific details on route readjustment have not been revealed.
Other moves include deploying newer, fuel-efficient Boeing B777-300ER aircraft on more routes, including San Francisco, Toronto and Paris, as well as speeding up the retirement of its older, fuel-guzzling B747-400 fleet. Currently, the carrier operates 21 of these aircraft, of which three will retire by the end of this year, another five in 2013 and one more in early 2014, bringing the number down to 12. However, despite having to cut costs, CX reiterated that “there are no plans to cancel or defer aircraft orders” and will take delivery of a total of 15 new planes by the end of this year, with six already in operation. The new planes will be fitted with the carrier's new premium economy product (for a Tried and Tested of the new seats, click here).
For more information, visit www.cathaypacific.com
Alisha Haridasani
