Cathay Pacific (CX, Hong Kong International) chief executive, Ivan Chu Kwok-leung, has called on the airline's work-force to help cut rising costs as pressure on its yield continues to grow.
According to CAPA, Chu's appeal in the CX World internal publication centred on three key areas including: a stop on all non-essential discretionary expenditure; a freeze on the hiring or replacement of non-essential personnel; and a review of all operational budgets. The measures will take effect immediately.
The CEO further explained that business challenges had become more acute in recent weeks, with continued pressure on Cathay's cargo business being compounded by “a weakening trend in the passenger business”.
But despite the cutbacks, which he described as short-term, Chu said larger scale projects the carrier had been working on, including the reopening of Cathay's business class lounge The Pier, the opening of its new Madrid Barajas route, and the delivery of its maiden A350-900, now due on May 27, would not be affected.
Cathay Pacific has seen its load factors fall in recent months with Chu blaming a slump in tourism in Hong Kong, a sluggish global economy and market competition.
