Cathay set to restructure network, fleet operations as CEO warns of 'major crisis'
16 Sep 2008
Cathay Pacific Airways is mulling a comprehensive revamp of its network and fleet as made evident by a memo sent to employees last week by CEO Tony Tyler. He warned employees that the airline likely won't "emerge unscathed" from the industry downturn.
Last month Cathay cut 10 weekly flights to North America even as it added eight to Australia and increased capacity on a number of flights to Europe. The reshuffle followed Cathay's first six-month loss since the SARS outbreak hit the region.
In last week's memo, first reported by the Associated Press, Tyler told staff, "the industry is now in the middle of a major crisis and it's unlikely that we are going to emerge unscathed. These are extremely difficult times for the aviation industry, and I'm sorry to say there doesn't appear to be any light at the end of the tunnel just yet."
His memo also revealed that the carrier would look at a further restructuring of capacity, raising fares and surcharges and a major reworking of the fleet.
