Showing posts with label Hong Kong. Show all posts
Showing posts with label Hong Kong. Show all posts

Thursday, August 4, 2016

Cathay Pacific Direct Entry First Officer




Direct Entry First Officer – A330 & B747 Hong Kong based

Experienced and technically proficient pilots are required to meet the following minimum requirements:
  • ICAO Airline Transport Pilot Licence (ATPL) – obtained without exemption or conversion
  • Valid Multi-Engine Instrument Rating
  • Valid Class 1 Medical Certificate
  • ICAO English Level 4 or above
  • Experience commensurate with age

Minimum flight time experience:
1000 hours flying experience in one, or a combination of the following:

  • Multi-engine jet transport as Commander or First Officer
  • Military high performance jet
  • Turbo propeller aircraft of weight 20,000KG or more (command)
  • Corporate jet (command)
  • Military instruction (fixed wing)

Preference will be given to applicants with the following flight time experience:
A minimum of 500 hours in Airline or Military Jet Transport aircraft with a certified Maximum All Up Weight (MAUW) equal to or greater than 45,000KG.

The total hour requirement may be reduced for Airbus or Boeing type rated individuals, with time on type.

Direct Entry First Officer training will be conducted in the Cathay Pacific Flight Training Centre in Hong Kong.






Tuesday, March 17, 2015

Hong Kong airport gets green light for S$25bn third runway




The Hong Kong government gave final approval today (March 17) for a third runway at the Asian financial centre's airport, aiming to meet surging growth in passengers and air cargo.

Officials said the project will begin next year and cost HK$141.5 billion (S$25 billion).

About 650 hectares of land will be reclaimed from the sea for the runway and a new passenger building. Construction is expected to be completed by 2023.

Hong Kong International Airport expects to reach maximum capacity under its current layout by 2022 at the latest.

Last year, the airport handled 63.4 million passengers and 4.4 million metric tons of cargo, both records.

The airport predicts that the third runway will allow it to handle 102 million passengers and 8.9 million tons of freight a year by 2030.

Across Asia, airport operators are scrambling to build new terminals or expand existing ones to keep up with growth in air travel.


SOURCE

Friday, August 22, 2014

Jetstar Hong Kong sells 3 aircraft as it awaits approval


New budget airline Jetstar Hong Kong said on Friday (Aug 22) it has sold a total of six of its aircraft because it is taking longer than expected to get a licence to operate. The airline, which is a joint venture between Australia's Qantas, China Eastern Airlines and Hong Kong-based Shun Tak Holdings applied for regulatory approval in 2012 in the southern Chinese city.

An airline will only be given a operation license if its principle place of business and centre of its decision-making is in Hong Kong, according to local laws. "Jetstar Hong Kong can confirm the sale of a further three aircraft, now a total of six Airbus 320s, with three remaining in the fleet for launch," the airline's chief executive officer Edward Lau told AFP in an email.

The airline sold three A320s this month, and three in April. "This has been an unfortunate but prudent business decision made by the Jetstar Hong Kong board as the regulatory approvals are taking longer than initially expected," Lau said, adding that the sale doesn't affect the firm's readiness once approval is given.

Lau said Jetstar is working "closely" with the government and is "confident of gaining all the necessary approvals". The catalogue price of the latest sale of three A320s this month is US$281.7 million (S$352 million), according to Dow Jones Newswires.

The regulatory approval for the airline has also faced opposition from the city's flag carrier Cathay Pacific, which says the airline is not based in Hong Kong. "The whole Jetstar network is part of an Australian entity and certainly can't pass the test of being principally based here in Hong Kong," Cathay's chairman John Slosar had said earlier this month, Dow Jones reported.

Qantas owns the Jetstar brand and has other joint ventures in Japan, Singapore and Vietnam. Shipping and property giant Shun Tak Holdings, founded by Hong Kong tycoon Stanley Ho, bought a third of Jetstar Hong Kong for US$66 million in June of last year, helping its bid to set up locally.

Hong Kong-listed Shun Tak is run by managing director Pansy Ho, daughter of Stanley, who is also a Macau casino mogul. The low-cost carrier plans to fly to destinations in China, Japan, South Korea and Southeast Asia.

SOURCE


Wednesday, August 13, 2014

Cathay Pacific profits soar but competition hurts yields


Cathay Pacific said on Wednesday (Aug 130 its first-half net profit soared to HK$347 million (S$56 million) on higher passenger demand, but the Hong Kong flag carrier warned of a "challenging" outlook as surging competition held down fares.

The figure for the six months ending June 30 compared with a net profit of HK$24 million in the same period last year. Its first half revenue rose 4.6 per cent to HK$50.84 billion. But despite its upbeat performance, the blue-chip airline faces several challenges including persistently high jet fuel prices.

"The operating environment for the Cathay Pacific Group - and the aviation industry as a whole - remains challenging," group chairman John Slosar said in a filing to the Hong Kong stock exchange. "On the plus side, we continue to strengthen our passenger network and the connections available through Hong Kong," he said.

Aviation analyst Daniel Tsang told AFP the huge increase in net profits was on account of the airline's improving passenger operations, which contributed to a sharp jump in revenues. The airline's passenger revenue in the reported period was up 4.4 per cent to HK$36.52 billion compared to the previous year, helped by the introduction of new long-haul routes to destinations such as Doha and Newark.

FALLING PASSENGER YIELDS

However, Tsang said the airline will need to improve its passenger yields, a key measure of airlines' profitability, to maintain this earnings trend. Passenger yield, the measure of the average fare paid by a passenger per mile, fell 3.5 per cent to HK66.6 cents, reflecting weaker ticket prices in the face of surging competition.

"For this upward trend to be sustained, arresting this yield decline is paramount and a prerequisite," he said. Revenue for its air cargo business, which took a toll for more than two years due to the weak economy and demand for shipments, rose 3.4 per cent compared to the first half of last year, at HK$11.66 billion.

But over-capacity in the air cargo market created downward pressure on rates, with the airline seeing cargo yield falling by 6.9 per cent. "We expect our cargo business to be better in the second half of 2014 than it was in the first half. We are well placed to take advantage of any increase in demand," the airline said. Cathay also indicated that high fuel prices were partly mitigated by operating more fuel-efficient aircraft.

Five new aircraft, including two Boeing 777-300ERs, were delivered to Cathay during the reported period, as it retired two Boeing 747-400 passenger aircraft. Eleven new aircraft will be delivered in the second half of 2014, as it continues to modernise its fleet. "Cathay is pretty aggressive in renewing its fleet. By end of 2014, it will only have seven gas-guzzling 747-400s," analyst Tsang said.

The International Air Transport Association in June said airline profits are improving and that it expects airline companies to record combined net profits of $18 billion for 2014, down from its earlier forecast of $18.7 billion made in March.

SOURCE


Wednesday, July 30, 2014

Asia tourist boom fuels airport binge


Faced with snaking queues at immigration, overflowing baggage carousels and expensive flight delays, Asian nations are rushing to build hundreds of new airports to cope with surging demand for air travel in the region.

From China and India to the Philippines and Indonesia, the fast-growing middle classes are looking to spend their cash by spreading their wings, leading to a boom in the Asia-Pacific region's tourism sector. Airlines have responded by setting up several new budget carriers and flying new routes -- but many airports are unable to cope, forcing governments to either expand or simply build new airports.

"Through the next 10 years, we see more than 350 new airports in the Asia-Pacific and the investment cost will be well over $100 billion," said Chris De Lavigne, a global vice president at business consultancy Frost & Sullivan Asia Pacific.

"China is building over 100 airports, India is building over 60 airports and Indonesia will also have to follow suit with investments in its infrastructure," said De Lavigne, who closely tracks Asia's aviation industry.

Upgrades of existing airports could cost an additional $25 billion, he told AFP by telephone from his office in Jakarta. International tourist arrivals in Asia-Pacific grew an annual 6.0 per cent to 248 million last year, the strongest of any region worldwide, according to the UN World Tourism Organization. To cope with this, construction is being ramped up.

The Canada-based Airports Council International (ACI) said in a report that Indonesia plans to build 62 new airports in the next five years, in addition to its existing 237. Soekarno-Hatta in Jakarta is improving capacity after handling 60 million passengers last year, nearly three times what it was designed for, ACI said.

And Kuala Lumpur aims to double capacity to 100 million a year by 2020, while Hong Kong wants to handle 97 million annually by 2030, up from 60 million in 2013. In Beijing -- which already has a hub servicing 80 million people -- a second, $11 billion airport is being built to open in 2018 and handle 40 million passengers, Sydney-based consultancy Centre for Aviation said.

There are also plans for a full replacement of Manila's Ninoy Aquino International Airport, one of Asia's most notorious for overcrowding and backward facilities. Its Terminal 1, which is undergoing a major makeover, was built in 1981 to handle six million passengers a year. Together with two extension terminals, the airport handled around 30 million passengers in 2013.

Even Singapore's Changi -- regarded by many as one of the world's best -- is expanding, with a $1.0 billion Terminal 4 opening in 2017 that will raise capacity to 82 million passengers from the current 54 million. Plans are already being made for a Terminal 5.

Shukor Yusof, an analyst with Malaysia-based Endau Analytics, said airport infrastructure in many countries has lagged well behind travel growth.

"Many governments have paid scant attention to developing new terminals and new tarmacs, that's why you find that many of the airports are bursting at the seams," he said.

The focus is not just on capitals. The need for more space means much of the new construction is taking place in secondary cities, with some facilities potentially becoming hubs.

De Lavigne cited the Kualanamu International Airport in Indonesia's Medan, which opened last July and could become a hub for flights to Malaysia, Thailand, Myanmar, India and China. It was designed to handle eight million passengers a year but is already at capacity, he said.

"By 2025, they're forecasting 24 million passengers out of Medan, or a three-fold increase in just over 10 years," De Lavigne said, adding that Indonesia's aviation sector alone is growing 14-15 per cent a year.

Even less developed tourist destinations are pressing ahead with building. Myanmar -- returning to the global fold after decades of isolation -- is looking to upgrade 39 airports as tourist and domestic air passenger figures are seen surging to 30 million in 2030 from 4.2 million in 2013, the ACI said.

The government is also building a new $1.5 billion Hanthawaddy International Airport to serve as Yangon's second airport, it added.

Bangladesh is constructing a new airport costing up to $7.2 billion about 60 kilometres (37 miles) from Dhaka, ACI said. Funding from governments and the private sector does not appear to be a problem.

"There's a lot of liquidity out there. There's a lot of money in project financing," Shukor said.

Airports are now even targeting non-travellers, with the current trend for "aeroparks and aerotropolises" integrating lifestyle amenities, attracting diners and shoppers who won't even board flights.

"You get people who don't fly to come into the airports for food, shopping and other lifestyle activities. That trend which started in the West is increasingly finding its way into Asia," De Lavigne said.

SOURCE


Wednesday, April 16, 2014

China Southern Airlines issues profit warning


China Southern Airlines, the country's largest carrier by fleet size, warned of a loss of more than $50 million in the first three months of the year as it was hit by exchange losses caused by a weaker yuan.

In a filing to the Hong Kong Stock Exchange the firm said it would lose 300-350 million yuan ($48.2-$56.3 million) in January-March. That compares with a net profit of 57 million yuan in the same period last year, the filing said.

"The financial expenses of the company substantially increased as compared with the corresponding period of 2013 due to the exchange losses... resulting from the substantial depreciation of renminbi," the company said.

The yuan -- which China's central bank allows to rise and fall only within a controlled band -- slid in March its lowest level against the dollar in nearly 13 months. Analysts have said Beijing has moved to weaken the currency to control speculative funds betting on its continued rise.

The US Treasury on Tuesday warned that the recent fall of yuan could "raise particularly serious concerns" if it represents a reversal in Beijing's commitment to a more free-floating currency. However, it did say China was not a manipulator.

A weak yuan adds pressure to the bottom lines of Chinese airlines that depend on debt measured in foreign currencies, particularly in US dollars, to finance purchases of new aircraft.

China Southern's Hong Kong-listed shares were down 1.62 percent at HK$2.43 in by the break on Wednesday, while the benchmark Hang Seng Index was up 0.63 percent.

SOURCE


Monday, March 24, 2014

Electrical problems divert Malaysia Airlines plane to HK


A Malaysia Airlines flight from Kuala Lumpur to Seoul had to divert to Hong Kong early Monday due to electrical problems, the carrier said, adding to the flag-carrier's headaches as it grapples with its missing plane crisis.

Flight MH066 was "diverted to Hong Kong due to an inoperative aircraft generator which supplies normal electrical power" on the Airbus A330-300, the airline said in a statement.

"However, electrical power continued to be supplied by the Auxiliary Power Unit," the company said, giving no further details on the equipment problem.

It said the aircraft landed in Hong Kong "uneventfully" and that all 271 passengers had been transferred to other carriers.

A Hong Kong Airport Authority spokeswoman said the aircraft touched down without incident at about 3:00 am.

The plane had departed from Kuala Lumpur at 11:37 pm (1537 GMT) on Sunday and was scheduled to arrive at Seoul's Incheon airport at 6:50 am, South Korean time.

As a result of the diversion, the return flight MH067 from Incheon to Kuala Lumpur was cancelled and passengers were transferred to other carriers as well as subsequent Malaysia Airlines flights to Kuala Lumpur.

On March 8, Malaysia Airlines Flight 370 disappeared off civilian radar just an hour into its journey to Beijing, sparking an unprecedented international search across huge swathes of the Indian Ocean and South China Sea.

Malaysia has said the plane -- with 239 people aboard -- veered inexplicably off of its intended route in an apparently deliberate act.

Aircraft and ships from several nations have picked up a suspected trail in the southern Indian Ocean, where large pieces of floating debris have been spotted but not yet retrieved to determine if they are from MH370.

SOURCE


Wednesday, March 12, 2014

Cathay Pacific says net profit tripled in 2013


Hong Kong flagship carrier Cathay Pacific said Wednesday net profit more than tripled last year thanks to a rise in demand from Chinese travellers and fuel cost-saving measures.

The airline said profit jumped to HK$2.62 billion ($338 million) from HK$862 million in 2012 as revenue climbed 1.1 per cent to HK$100.5 billion.

The 204 per cent increase helped the firm recover from a painful 2012, when its bottom line was hammered by the effects of the eurozone crisis as well as persistently high fuel prices.

The result was in line with the average HK$2.74 billion net profit forecast by analysts, according to Dow Jones newswires.

However the figure is still well down from the HK$5.5 billion profit seen in 2011.

"The operating environment remained challenging throughout 2013... It was therefore encouraging to see an improvement in our overall performance," company chairman Christopher Pratt said in a filing to the Hong Kong Stock Exchange.

Cathay, which also owns Hong Kong-based airline DragonAir, said it transported almost 30 million passengers in 2013, an increase of 3.3 per cent from the previous year, helped by strong demand for leisure travel from its base in Hong Kong, a jump in outbound travel from mainland China and promotional ticket programmes.

Fuel remains the most significant cost, the company said, accounting for 39.0 per cent of total operating costs in 2013.

The airline said it had helped combat high fuel prices by withdrawing older planes and operating more long-haul services using fuel-efficient Boeing 777-300ER aircraft. The company also reshuffled schedules, helping bring down fuel costs by 4.6 per cent year-on-year, it said.

Pratt said its cargo business had been hit by weak demand since April 2011, with revenue falling 3.6 per cent to HK$23.7 billion.

But the company said it remained confident in the city as an aviation hub.

An investment of HK$5.9 billion into a new cargo terminal at Hong Kong airport, which opened last year, "will bear fruit in the long term", it said.

The airline has also faced stiff competition from low-cost carriers, particularly in Southeast Asia.

In 2013, Cathay Pacific acquired 19 new aircraft, including five Airbus A330-300 aircraft nine Boeing 777-300ER aircraft and five Boeing 747-8F freighters.

Cathay was trading down 1.8 per cent at HK$15.5 early afternoon Wednesday in Hong Kong.

SOURCE


Saturday, December 28, 2013

Cathay Pacific orders 4 more long-haul Boeing planes


Hong Kong flag carrier Cathay Pacific ordered four additional long-haul planes from Boeing on Friday, a week after it ordered 21 Boeing 777-9X planes, in a move to modernise its fleet.

The airline said it would purchase an additional three Boeing 777-300ER passenger planes along with a Boeing 747-8 freighter, with a total list price of HK$7.4 billion (US$954.25 million).

Cathay did not reveal the amount it is paying to the US manufacturer, but airlines usually negotiate a discount from a plane's catalogue price.

"Both the 777-300ER and the 747-8F offer a highly efficient solution on Cathay Pacific's ultra-long-haul routes," the airline's chief executive John Slosar said in a statement released on Friday.

Slosar said the 777-300ER's, which are expected to be delivered in 2015 and the 747-8F, to be delivered in 2016, combine "superb operating economics with a significant reduction in emissions".

Cathay last Friday ordered 21 long-haul Boeing 777-9X planes, the aircraft manufacturer's newest member of the 777 family, at a list price of US$7.48 billion.

The yet-to-be launched 777X series includes advanced technology including composite wings and engines that Boeing says consume 20 per cent less fuel than today's model.

The airline said the planes, which will seat up to 400 passengers and be delivered between 2021 and 2024, were ideal for long-haul destinations in North America and Europe.

The airline said in August it swung to a lower-than-expected net profit of US$3.1 million in the first six months, after losing money in the same period of 2012. Gains in passenger numbers were offset by persistently high fuel prices and falling cargo revenue.

This year, Cathay has increased daily services to popular destinations such as Los Angeles, Chicago and London.

The airline is set to take delivery of 93 aircraft between 2014 and 2024 at a total list price of US$28.63 billion.

SOURCE


Thursday, June 20, 2013

Chinese firm HKAC orders 60 Airbus jets


The Chinese aircraft leasing company Hong Kong Aviation Capital said on Thursday it had agreed to buy 60 Airbus jetliners in a deal worth up to US$6.3 billion (4.7 billion euros).

HKAC chief executive Donal Boylan has signed a memorandum of understanding (MoU) with Airbus that covers "the purchase of 40 A320neo and 20 A321neo aircraft," a statement said.

They are the latest, fuel-efficient versions of Airbus' best-selling medium-range aircraft, and the total number of planes carries a list price of $6.3 billion, though substantial discounts are the norm for large orders.

"This is our first direct order with any aircraft manufacturer and our first commitment for the A320neo" Boylan was quoted as saying.

HKAC is one of a number of growing aircraft leasing companies which account for a growing percentage of all aircraft purchases, and the size of the deals allows them to negotiate better rates than small airlines.

"We are delighted to have HKAC as our new customer for the Neo, the world's bestselling single-aisle aircraft," Airbus Chief Operating Officer John Leahy said.

Alain Guillot, an expert in aerospace and defence at consultants AlixPartners has estimated that between 2007 and 2012, the share of planes belonging to leasing companies has grown by 20 per cent.

"Planes being rented out represented 35 per cent of the worldwide fleet in service in 2012," excluding private aircraft, he said.

Guillot has also calculated that nearly half of Airbus and Boeing order books are filled with deals done with leasing companies.

Airbus has indicated that sales via leasing will make it easier for many airlines to operate its A380 superjumbo airliner.

SOURCE

These leasing companies are high on confidence that all their orders will be leased out without trouble, having seen a number of them making huge aircraft orders. This should mean the market will get better in the near future, but probably mostly in Asia Pacific region.


Thursday, June 6, 2013

Shun Tak Holdings buys a third of Jetstar Hong Kong


A firm founded by Macau casino tycoon Stanley Ho has paid US$66 million for a third of new budget airline Jetstar Hong Kong, Australia's Qantas said Thursday.

Shipping and property giant Shun Tak Holdings will hold an equal share in the low-cost carrier, a joint venture involving Qantas and China Eastern Airlines that plans launch this year flying to China, Japan, South Korea and Southeast Asia.

Qantas chief Alan Joyce said the transaction would see his airline reduce its investment from US$99 million so that all three entities had a third share, with Jetstar Hong Kong's market value unchanged at US$198 million.

"This adds to the strategic partnerships we have across Asia with companies that have chosen to invest in the Jetstar brand," said Joyce in a statement to the Australian stock market.

"There is clear potential for a local low-cost carrier in Hong Kong to stimulate new travel demand, particularly given the proximity to mainland China and the ability to connect with existing parts of the Jetstar network," he added. Qantas owns the Jetstar brand and has other joint ventures in Japan, Singapore and Vietnam.

The move will help Jetstar Hong Kong in its application for regulatory approval in the city, which has tough rules for foreign-owned firms looking to set up locally.

Hong Kong-listed Shun Tak Holdings is run by managing director Pansy Ho, daughter of Macau casino mogul Stanley.

SOURCE

This can only mean good news to the young branch of the Jetstar group. With the airline now partly owned by the local, it can now get permit to fly to different cities within China much easily. The Jetstar network is expanding very vastly, competition in the skies will be very strong.


Wednesday, March 13, 2013

Cathay Pacific's 2012 net profit slumps 83.3%


Cathay Pacific said Wednesday that 2012 net profit plunged 83.3 percent, as the Hong Kong flag carrier was hit by persistently high fuel prices and the Eurozone financial crisis.

The airline said profit stood at HK$916 million (US$118 million), down from the HK$5.5 billion it recorded in 2011. Revenue rose 1.0 percent to HK$99.4 billion from HK$98.4 billion in 2011.

Cathay said it carried a total of 29.0 million passengers in 2012, a 5.0-percent rise year on-year, but its premium class sales were hit as companies cut back on travel for executives.

"It was a challenging year for the aviation industry generally," chairman Christopher Pratt said in a statement to the Hong Kong stock exchange.

The airline said that "sustained high levels" of jet fuel prices, which accounts for more than 40 percent of total operation costs, dragged down its performance.

"The high cost of fuel made it more difficult to operate profitably, particularly on long-haul routes operated by older, less fuel-efficient, Boeing 747-400 and Airbus A340-300 aircraft," said Pratt.

Even though Cathay has accelerated its plans to retire fuel-guzzling aircraft, the chairman said fuel costs will remain its "biggest challenge" this year, as the long-haul routes account for a huge chunk of its business.

"Economic uncertainty, particularly in the Eurozone countries, and an increasingly competitive environment added to the difficulties," Pratt said.

"We believe we have taken the right measures to deal with current challenges and will take whatever further measures are necessary should the business environment not improve," he added.

The weak global economy continued to take a toll on Cathay's air cargo business, with revenue falling 5.5 percent to HK$24.6 billion in 2012, while demand for shipments in key markets Hong Kong and mainland China "was well below expectations".

The blue-chip Asian airline in August posted a first-half year net loss of HK$935 million.

Airlines around the world have been struggling with fuel costs and softening demand owing to the global economic weakness.

But the International Air Transport Association said in December that profits for global airlines are expected to pick up, with the industry group forecasting total profits of US$6.7 billion for 2012, up from its previous estimate of US$4.1 billion.

SOURCE

High jet fuel prices, anemic market demand; the usual reasons for profit drops plaguing premium airlines today.  However, CX will need to retire those old B747 jumbos to further cut down on the fuel bill.


Tuesday, January 22, 2013

Cathay asks crew to volunteer for early retirement


Hong Kong flag carrier Cathay Pacific on Tuesday asked its cabin crew to volunteer for early retirement as part of its cost-cutting measures to boost profitability amid a global slowdown.

Cathay has been trying to trim costs after it fell into the red in the first half of 2012 with a HK$935 million ($121 million) loss, partly due to high fuel prices that have also dragged down other regional airlines' performance.

The airline said the scheme would be offered to flight attendants who joined the firm before September 1996, to cut cost as well as to help facilitate recruitment and promotion opportunities.

"It is also part of the airline's cost management measures," a spokeswoman said in a statement to AFP, adding that the airline has not set any target on the number of flight attendants that it hopes would sign up for the scheme.

The carrier has around 9,000 cabin crew members, who serve 170 routes in 42 countries and are among over 20,000 staff the airline employs worldwide. It did not say what number of crew members is eligible for the scheme.

Cathay averted an industrial action by its crews -- which had threatened to stop serving alcohol and smiling at passengers -- over the Christmas holidays last month after it agreed to improve their working conditions.

The protest was sparked by Cathay's bid to give a two percent pay rise to its employees this year, on top of a discretionary one-month bonus for 2012, falling short of the flight attendants union's demand.

Singapore Airlines, one of Cathay's rivals, earlier this month asked its captains to volunteer for unpaid leave after it posted a 69-percent plunge in profit in the carrier's financial year ending March 2012.

SOURCE

SIA targets its pilots, Cathay asks its cabin crew to retire early, read: never come back. It is really bad times for the big airlines due to the ever rising fuel costs.


Friday, January 4, 2013

Hong Kong Airlines to end services to Tokyo


Hong Kong Airlines announced Friday it will end its services to Tokyo in January, after it suspended flights to Osaka last October, to "tighten" its focus on regional routes.

The company will axe its route to the Japanese capital from January 10 allowing it "to better allocate resources in servicing more popular routes and strengthen its regional competitiveness", a company spokeswoman told AFP by email.

"There is a need to continue to tighten focus on routes in line with the company's regional strategy," she said, adding the airline had carried 30 percent more passengers in 2012 than the previous year.

The airline described the move as a "purely a commercial decision".

China and Japan have close economic ties but their political relationship has been particularly strained recently due to a dispute over islands in the East China Sea and Chinese resentment over past conflicts and atrocities.

Tensions over the Japanese-controlled Senkaku islands, which China claims under the name Diaoyu, escalated dramatically after the Japanese government bought three of them from private owners last September.

The number of Chinese tourists visiting Japan plunged 33 percent in October 2012 compared to a year previously, to 71,000 visitors, according to the Japan National Tourism Organization.

The Hong Kong-based airline was established in 2006 and operates 21 aircraft flying to international locations including Bangkok and Brussels, and to various locations in mainland China.

It ended flights to London, serviced by three Airbus 320-200 planes exclusively fitted with business-class seats, last September due to poor demand.


SOURCE

Ever since the conflict of the islands between China and Japan, airlines serving routes between them have taken a hit with poor loads. After so many months of deadlocks, it seems to be more commercially viable to axe these routes and cut losses, especially so for smaller airlines to stop the bleeding.

What surprises me is the airline using three A320s to fly passengers to London. That is quite an amazing range for a small plane, although the load might be light due to the all business-class seats.

 

Wednesday, December 5, 2012

Cathay Pacific crews threaten holiday strike


A union representing flight attendants of Hong Kong's flagship carrier Cathay Pacific on Tuesday threatened industrial action over a pay rise dispute, just weeks before the holiday season.

The airline announced on Friday a two percent pay rise for its employees in 2013, falling short of the five percent demanded by the 6,000-strong Cathay Pacific Airways Flight Attendants Union, sparking protest from members.

"We will mobilise all our members to join in the industrial action," union vice chairman Julian Yau told reporters, after calling the rise "totally unacceptable" due to the high cost of inflation.

He urged the airline not to "force its workers to carry out actions that would be harmful to all", and said the union, which has not ruled out the possibility of a strike, will decide its next course of action in a meeting on Monday.

Responding to the threat, Cathay said the two percent adjustment, along with a discretionary one-month bonus for 2012, is a "fair, reasonable and competitive offer in view of the extreme challenges the airline is facing".

"I trust most of our cabin crew are considerate and understand the challenging situation the company is in," Cathay said in a statement.

The airline fell into the red in the first half of the year with a HK$935 million ($121 million) loss, partly due to high fuel prices.

SOURCE

In times like now, a strike isn't one of the best things to do. Employees should also be a little more understanding of the situation airlines are facing. Rough out the bad weather together and the days ahead will be better.