Alice Woodhouse in Hong Kong
Hong Kong-based Cathay Pacific mentioned it should transfer 40 per cent of its fleet out of the semi-autonomous Chinese language metropolis for storage because the airline mentioned it expects a “lengthy and unsure highway to restoration”.
“Given that we are going to be working only a fraction of our providers within the foreseeable future, we’ll proceed to switch a few of our passenger fleet – roughly 40% – to places outdoors of Hong Kong in line with prudent operational and asset administration concerns,” the airline mentioned in a press release.
It’s typically cheaper for airways to retailer their fleets at plane storage services, typically in deserts as dry situations are most popular for long-term storage.
The airline has been pressured to repurpose passenger plane to hold cargo within the cabin and parked its grounded plane at Hong Kong Worldwide Airport after the pandemic hit journey demand.
Cathay Pacific operates 152 plane, Cathay Dragon operates 48 and funds airline HKExpress has 24 plane, in keeping with the corporate’s first-half outcomes.
“We’re weathering the storm for now, however the reality stays that we merely is not going to survive until we adapt our airways for the brand new journey market,” mentioned Ronald Lam, chief buyer and industrial officer. “A restructuring will subsequently be inevitable to guard the corporate, the Hong Kong aviation hub, and the livelihoods of as many individuals as doable.”
Cathay is burning money at a charge of HK$1.5bn ($194m) to HK$2bn a month regardless of lowering prices, Mr Lam mentioned.
Cathay Pacific and Cathay Dragon carried 35,773 passengers in August, down 98.eight per cent in contrast with a yr earlier.
Looking forward to September and October, Cathay mentioned that it had not seen “any strong indicators of rapid enchancment.”
Cathay operated at simply 7.eight per cent of its regular capability in August, however mentioned the airline mentioned it’s inspired by the very fact Hong Kong is in dialogue with 11 international locations to create “journey bubbles”.
Hong Kong has restricted arrivals into town to residents and imposed strict quarantines in a bid to restrict the unfold of coronavirus.
