Global airlines cut capacity, staff, costs due to COVID-19

Cathay Pacific mulls fleet renewal, grapples with rehiring

As it embarks on a recovery from three devastating years for its business, Cathay Pacific (CX, Hong Kong Int'l) is looking at options to renew its passenger fleet, in particular for its short-haul and medium-haul network, its chief executive Augustus Tang has said.

The airline had its access to a HKD7.8 billion Hong Kong dollar (USD994 million) loan facility for a further year confirmed last week to support its recuperation from tough and prolonged Covid-related travel restrictions in Hong Kong, which came after the 2019–20 protests in the territory also impacted travel demand.

“We are constantly looking at the fleet requirements,” Tang told Bloomberg News. “We haven’t come up with a decision as to when we will be going to the market, but this is a topic we are looking at very closely, particularly the regional fleet.”

He described the decision as “crucial” but declined to quantify it. But he compared the upcoming renewal to Cathay Pacific’s original purchase of B777 long-haul aircraft from Boeing, which was later expanded in December...

Qatar Airways plans to add B737 MAX for "subsidiary"

Qatar Airways (QR, Doha Hamad Int'l) is planning to place its impending B737-10s with an unspecified subsidiary, Qatar Airways Group Chief Executive Akbar Al Baker told aviation analyst John Strickland in an interview quoted by the Gulf News.

"We have bought those for our subsidiary company - we feel that cancelling the A321-200neo unilaterally by Airbus is illegal, and we will let the court decide on that issue," he said, clarifying that the B737 MAX and the A321neo were independent plans for the holding.

The Qatari carrier signed a Memorandum of Understanding for twenty-five B737-10s with a further 25 options in early 2022. It was the second time it signed for the Boeing aircraft. The first batch of sixty B737-8s was covered by a Letter of Intent from 2016 and was due to join the fleet of Air Italy (IG, Milan Malpensa). Ultimately, only five aircraft were ever delivered to the Italian carrier. They were returned when Air Italy collapsed in early 2020, and Qatar Airways...

Hong Kong extends Cathay Pacific's access to close on $1bn

Cathay Pacific (CX, Hong Kong Int'l) will have access to a HKD7.8 billion Hong Kong dollar (USD994 million) loan facility for a further 12 months until June 8, 2023, after the Hong Kong-SAR Government decided to extend it for the second time in as many years.

The government provided the bridge loan facility to Cathay Pacific as part of the HKD39 billion (USD4.9 billion) recapitalisation announced on June 9, 2020, following the COVID-19 downturn.

Welcoming the government's decision, Chief Executive Officer Augustus Tang, in a statement, said the flag carrier had not needed to draw on the facility over the past 12 months due to prudent cash management. Still, the extension has given the airline the flexibility to manage its liquidity position.

He said the Cathay Pacific Group’s liquidity remained at a healthy level, standing at HKD30.3 billion (USD3.8 billion) at the end of 2021, compared to HKD28.6 billion (USD3.6 billion) at the end of 2020.

“Following the recent adjustments to the government’s travel restrictions and quarantine requirements, the airline is progressively adding...

Hong Kong's Greater Bay Airlines aims for 2Q22 launch