Thursday, August 31, 2017

Cathay Pacific to boost passenger, cargo capacity in India with bigger planes

New Delhi: Hong Kong’s Cathay Pacific Airways, under pressure from mainland Chinese carriers, plans to increase its passenger and cargo business in India where yields are holding up better than at home, a senior company executive told Reuters.

Cathay, which can only operate a limited number of flights to India due to bilateral constraints, plans to fly bigger planes between Mumbai and Hong Kong to boost its passenger and cargo capacity, Mark Sutch, regional general manager for South Asia, Middle East and Africa, said in an interview on Thursday.

“The Indian economy is pretty vibrant and the growth here is significantly higher than many countries,” said Sutch, adding India and China were two markets where Cathay saw a big future.

In recent years, Cathay has seen its market share on international routes eroded by rapidly expanding mainland Chinese and Gulf airlines. This, with poor fuel hedges and lack of a budget arm, have hurt its competitiveness.

India is among the top 10 markets for Cathay in terms of revenues. Its Indian revenues grew 5 percent in 2016 to 12.58 billion rupees ($197 million), when overall the airline reported its first full-year loss since 2008.
31/08/17 Aditi Shah/Reuters