CX to adopt further measures to lessen impact of financial crisis

HONG KONG – Cathay Pacific Airways (CX) said it would adopt a series of new measures that will help the airline deal with a serious downturn in business as a result of the global financial crisis. The measures include cutting back on planned passenger capacity growth in 2009; offering cabin crew and cockpit crew the opportunity to take voluntary unpaid leave.

CX is paring back its earlier projection of six- to seven-percent growth in capacity in 2009 to less than one percent to reflect the anticipated decline in demand. Services on some routes will be adjusted accordingly though the airline is clear that it plans to keep its network integrity intact and not cut any destinations.

As a result of the reduction in planned passenger capacity growth, the airline will offer a voluntary unpaid leave scheme for its cabin crew and cockpit crew. The 2009 scheme for cabin crew will come into effect on January 1 and will offer periods ranging from two weeks to a maximum of 12 months. The scheme will apply to all ranks of CX’s 7,000 cabin crew based in Hong Kong. Unpaid leave is also being offered to all the airline’s pilots on a voluntary basis.

CX chief executive, Tony Tyler, said the adjustments to the airline’s operating plan for next year were “necessary” given the expected global drop in demand.

“However, the plan may well have to be revised again depending on how things unfold. Nothing can be set in stone at the moment. Visibility is low and it’s hard to predict developments with any real certainty. Flexibility will be the key word in the months ahead,” he said.