The recent turbulence at Cathay Pacific may have implications for airfreight, as Asia\u2019s biggest cargo carrier announces layoffs and cost-cutting actions to accommodate what it\u2019s CEO, Ivan Chu, termed the \u201cnew normal.\u201d
\nFollowing a meeting of the carrier\u2019s leadership, the Hong Kong-based carrier made an announcement that, \u201csome jobs will no longer be needed.\u201d By way of explanation, Chu added that \u201cthe competition is here to stay.\u201d
\nChanges at Cathay have been anticipated since late 2016, when weak sales prompted Chu to concede that \u201cvery tough\u201d conditions necessitated changes in strategy. He noted that the weak global economy from earlier in the year had forced firms to cut spending. Cathay has benefitted from China\u2019s precipitous growth in recent decades, but changes in supply chains and a slowing mainland economy are now playing out in aviation.
\nCompounding economic malaise, low-cost carriers and competition from the Gulf have Cathay on its heels. Also, ultra-long-haul jets, such as the 787 and A350, have opened up longer routes that threaten to eliminate the old hub model that had kept Cathay in the black.
\n\u201cThis is not a short-term crisis, but one that will impact us over the long term \u2013 and it will require us to do things differently,\u201d Chu told the publication Cathay Inside. \u201cIn recent years, we have been working hard to increase our productivity and keep our underlying cost base \u2013 that is, costs without fuel \u2013 competitive. We\u2019ve had some success, but we need to do more.\u201d
\nKey changes are expected to be implemented by mid-year, he added.
\nThose interested in learning more about\u00a0the changing air freight landscape in Asia should join us at Cargo Facts Asia in Shanghai, 25 \u2013 26 April, where a session will be devoted to the topic. \u00a0To register, or for more information, go to CargoFactsAsia.com.
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"
The recent turbulence at Cathay Pacific may have implications for airfreight, as Asia\u2019s biggest cargo carrier announces layoffs and cost-cutting actions to accommodate what it\u2019s CEO, Ivan Chu, termed the \u201cnew normal.\u201d Following a meeting of the carrier\u2019s leadership, the Hong Kong-based carrier made an announcement that, \u201csome jobs will no longer be needed.\u201d By[…]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[49],"class_list":["post-2126","post","type-post","status-publish","format-standard","hentry","category-news","tag-airport-code"],"_links":{"self":[{"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/posts\/2126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/comments?post=2126"}],"version-history":[{"count":0,"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/posts\/2126\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/media?parent=2126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/categories?post=2126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.actlogistics.vn\/kr\/wp-json\/wp\/v2\/tags?post=2126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}