Friday, September 01, 2017

Cathay Pacific eyes India to lift sinking growth

Hong Kong-based airline Cathay Pacific is looking at India for reviving its growth which has dipped in recent years on onslaught from low-cost rivals in mainland China and costly fuel hedging contracts.
The carrier recently reported a loss of $262 million in the first half of the year; its worst in two decades.

Cathay Pacific on Thursday announced the introduction of a larger aircraft - Boeing B777-300 - on the Mumbai-Hong Kong route. The airline, which commands over 45% market share in air traffic between India and Hong Kong at present, flies Airbus's A330 on this route.
Besides, it will also be re-introducing the premium economy class, which the management claims is seeing a popular demand on the sector.

Mark Sutch, general manager for South Asia, Middle East & African markets, Cathay Pacific, told DNA Money that the change to B777-300 aircraft will not only help in increasing the passenger capacity but also provide for up to 67% more cargo capacity under its belly.

“We see potential in the Indian aviation sector. To be the third largest aviation market by 2026 is a tremendous goal, and it is a testament to the potential that the market beholds. Likewise, at Cathay Pacific, we see significant opportunities in the growing Indian economy,” said Sutch while revealing the company's new strategy as part of its three-year turnaround plan which was initiated a few months ago. “We want to be at a wide range of destinations with multiple frequencies,” he added.
01/09/17 Shahkar Abidi/DNA