Manila Bulletin
December 15, 2012
AirAsia, the largest low cost airline in Asia, has placed a new order with Airbus for 100 more A320 Family aircraft. The contract covers an additional 64 A320neo and 36 A320ceo aircraft for operation across the carrier’s network.
The order was announced during a visit by British Prime Minister David Cameron to the Airbus wing manufacturing facility at Broughton in the UK, where Mr Cameron witnessed the signing of documents by Tan Sri Tony Fernandes, Group Chief Executive Officer, AirAsia and Fabrice Brégier, President & CEO, Airbus.
The contract reaffirms AirAsia’s position as the largest A320 Family airline customer in the world. Altogether, the carrier has now ordered 475 single aisle aircraft from Airbus, comprising 264 A320neo and 211 A320ceo. Over 100 aircraft have already been delivered to the airline and are flying out of its bases in Bangkok, Kuala Lumpur, Jakarta, Manila and Tokyo.
Tan Sri Tony Fernandes, Group Chief Executive Officer of AirAsia said during the signing: “We have three gold mines in Malaysia, Thailand and Indonesia. On the other hand, Philippines and Japan have enormous potential growth. With these added aircraft, it goes in-line with our strategy to further build our already extensive network through new routes and added frequencies and allow AirAsia to maintain its market leadership."
“AirAsia is one of the great success stories of recent years in the airline business,” said Fabrice Brégier, President & CEO, Airbus. “The repeated confidence the airline places in the A320 is a clear endorsement of the reliability, efficiency and unbeatable operating economics offered by the world’s most modern single aisle product line.”
AirAsia’s all-A320 fleet currently flies to some 70 destinations on a route network spanning 20 countries across Asia. In addition, affiliate AirAsia X operates widebody A330-300s on longer services from Kuala Lumpur to Northern Asia and Australia.
The A320 Family is the world’s best-selling and most modern single aisle aircraft Family. To date, more than 8,800 aircraft have been ordered and over 5,300 delivered to more than 380 customers and operators worldwide.
Saturday, December 15, 2012
Thursday, December 13, 2012
Singapore Airlines to focus on Asia after Virgin divestment
Philippine Daily Inquirer
December 13, 2012
By Martin Abbugao
Agence France-Presse
SINGAPORE—Singapore Airlines’ sale of its 49-percent stake in Virgin Atlantic will allow the cash-rich Asian carrier to focus resources on its fast-growing regional market, analysts said Wednesday.
The Singapore carrier’s tie-up with British billionaire Richard Branson’s Virgin Atlantic never really took off since the alliance began 12 years ago when the stake was bought for 600 million pounds ($966.5 million).
Singapore Airlines (SIA) on Tuesday said it will sell the stake to Delta Air Lines of the United States for $360 million in cash in a deal to be completed next year.
SIA said it “had been evaluating strategic options for the stake for some time, as the investment has not performed to expectations and the synergies the parties originally hoped for have not materialized.”
Analysts said SIA, consistently one of the world’s most profitable airlines, had little say in how Virgin Atlantic was run by the flamboyant Branson, and the sale allows it to exit an underperforming investment in the troubled European market.
“SIA can now focus on investments in the Asia Pacific region,” Brendan Sobie, a Singapore-based analyst with industry consultancy Centre for Aviation, told AFP.
Sobie said it made more sense for Delta to have a strategic stake in Virgin Atlantic as there are more synergies in their trans-Atlantic network.
Jason Hughes, an analyst with IG Markets Singapore, said that despite the higher acquisition price paid by SIA, the $360 million “will go down as a profit, as losses had already been accounted for in previous years”.
SIA shares closed 1.12 percent higher at Sg$10.87 as investors cheered the divestment.
Malaysian bank CIMB said in a note that the sale would give SIA a “short-term boost” but urged investors to focus on the long-term challenges posed by Middle Eastern carriers and budget airlines.
Shukor Yusof, an aviation analyst with Standard & Poor’s Equity Research, said SIA can use the extra cash to “redefine its business strategy on top of beefing up its regional subsidiaries”.
“It’s also good to exit out of Europe because the market conditions there are quite atrocious,” he told AFP.
Shukor said conflicting management styles with Branson was one of the chief reasons why the alliance failed to prosper beyond a code-sharing agreement.
“Branson remained the controlling shareholder and he called the shots,” he said.
Virgin Atlantic also did not have enough slots at London’s high-traffic Heathrow airport for SIA to latch on in its bid to gain a share of the lucrative trans-Atlantic route to New York, Shukor added.
Analysts said SIA’s decision to buy the stake in Virgin Atlantic in March 2000 was a good move at the time because Asia was just emerging from the 1997-1998 financial crisis.
But the center of global economic power has since shifted to Asia, sparking a travel boom in the region.
Passenger traffic in the Asia Pacific is forecast to account for 33 percent of the global market in 2016, up from 29 percent in 2011, according to trade body International Air Transport Association (IATA).
“This makes the region the largest regional market for air transport, ahead of North America and Europe which each represent 21 percent,” IATA said in a statement on their latest industry forecast.
SIA has been investing both in the premium travel segment, where it faces competition from Middle East carriers, and in the low-cost market where it is challenged by budget airlines.
SIA in June launched a long-haul budget wing called Scoot while maintaining a substantial stake in low-fare carrier Tiger Airways. It also operates a regional wing, SilkAir.
SIA and Scoot in October announced orders for 45 Airbus and Boeing aircraft. The orders came after SilkAir in August said it would buy 54 new Boeing planes with an option to buy a further 14 aircraft.
December 13, 2012
By Martin Abbugao
Agence France-Presse
SINGAPORE—Singapore Airlines’ sale of its 49-percent stake in Virgin Atlantic will allow the cash-rich Asian carrier to focus resources on its fast-growing regional market, analysts said Wednesday.
The Singapore carrier’s tie-up with British billionaire Richard Branson’s Virgin Atlantic never really took off since the alliance began 12 years ago when the stake was bought for 600 million pounds ($966.5 million).
Singapore Airlines (SIA) on Tuesday said it will sell the stake to Delta Air Lines of the United States for $360 million in cash in a deal to be completed next year.
SIA said it “had been evaluating strategic options for the stake for some time, as the investment has not performed to expectations and the synergies the parties originally hoped for have not materialized.”
Analysts said SIA, consistently one of the world’s most profitable airlines, had little say in how Virgin Atlantic was run by the flamboyant Branson, and the sale allows it to exit an underperforming investment in the troubled European market.
“SIA can now focus on investments in the Asia Pacific region,” Brendan Sobie, a Singapore-based analyst with industry consultancy Centre for Aviation, told AFP.
Sobie said it made more sense for Delta to have a strategic stake in Virgin Atlantic as there are more synergies in their trans-Atlantic network.
Jason Hughes, an analyst with IG Markets Singapore, said that despite the higher acquisition price paid by SIA, the $360 million “will go down as a profit, as losses had already been accounted for in previous years”.
SIA shares closed 1.12 percent higher at Sg$10.87 as investors cheered the divestment.
Malaysian bank CIMB said in a note that the sale would give SIA a “short-term boost” but urged investors to focus on the long-term challenges posed by Middle Eastern carriers and budget airlines.
Shukor Yusof, an aviation analyst with Standard & Poor’s Equity Research, said SIA can use the extra cash to “redefine its business strategy on top of beefing up its regional subsidiaries”.
“It’s also good to exit out of Europe because the market conditions there are quite atrocious,” he told AFP.
Shukor said conflicting management styles with Branson was one of the chief reasons why the alliance failed to prosper beyond a code-sharing agreement.
“Branson remained the controlling shareholder and he called the shots,” he said.
Virgin Atlantic also did not have enough slots at London’s high-traffic Heathrow airport for SIA to latch on in its bid to gain a share of the lucrative trans-Atlantic route to New York, Shukor added.
Analysts said SIA’s decision to buy the stake in Virgin Atlantic in March 2000 was a good move at the time because Asia was just emerging from the 1997-1998 financial crisis.
But the center of global economic power has since shifted to Asia, sparking a travel boom in the region.
Passenger traffic in the Asia Pacific is forecast to account for 33 percent of the global market in 2016, up from 29 percent in 2011, according to trade body International Air Transport Association (IATA).
“This makes the region the largest regional market for air transport, ahead of North America and Europe which each represent 21 percent,” IATA said in a statement on their latest industry forecast.
SIA has been investing both in the premium travel segment, where it faces competition from Middle East carriers, and in the low-cost market where it is challenged by budget airlines.
SIA in June launched a long-haul budget wing called Scoot while maintaining a substantial stake in low-fare carrier Tiger Airways. It also operates a regional wing, SilkAir.
SIA and Scoot in October announced orders for 45 Airbus and Boeing aircraft. The orders came after SilkAir in August said it would buy 54 new Boeing planes with an option to buy a further 14 aircraft.
Wednesday, December 12, 2012
Alpha Aviation Gets Simulator Accreditation
Manila Bulletin
December 12, 2012
Aviation training provider Alpha Aviation Group Philippines (AAG Philippines) announced the accreditation of its A320 Full Flight Simulator by the European Aviation Safety Agency (EASA) and Civil Aviation Authority of the Philippines (CAAP).
EASA granted AAG the Flight Simulation Training Device (FSTD) Qualification Certificate, while CAAP awarded the Flight Simulator Accreditation. EASA incorporates and monitors safety rules as well as type-certification of aircrafts and components, among others.
Meanwhile, CAAP is responsible for establishing policies on Philippine civil aviation as well as implementing rules and regulations for aircraft and air facilities in the country.
AAG Philippines' Airplane Simulator Training Device includes a course on the A320-200, including initial, recurrent, and refresher trainings.
"Our EASA certificate and CAAP accreditation mark another milestone for AAG Philippines and our mission of delivering quality aviation training services to our partners in the airline industry," said Merit Gabriel, Vice President-Commercial, AAG Philippines.
The FSTD Qualification Certificate is awarded when an organization's roles and responsibilities satisfy industry standards. There are four types of FSTDs, namely, the full flight simulator, flight training device, flight navigation procedures trainer, and basic instrument training device.
To ensure safety and excellent training of pilots, FSTD standards undergo periodic evaluations. This strengthens the credibility of the international criteria that sustains trainings within UK Type Rating Training Organizations as per the Civil Aviation Authority International (CAAI).
These standards oversee the consistent quality of the device and simulator operator through regular technical evaluation, quality system assessment, and standard audits within regulatory requirements.
"We are very proud of this achievement, which reinforces our commitment to global civil aviation standards," said AAG general manager Nigel Harris.
December 12, 2012
Aviation training provider Alpha Aviation Group Philippines (AAG Philippines) announced the accreditation of its A320 Full Flight Simulator by the European Aviation Safety Agency (EASA) and Civil Aviation Authority of the Philippines (CAAP).
EASA granted AAG the Flight Simulation Training Device (FSTD) Qualification Certificate, while CAAP awarded the Flight Simulator Accreditation. EASA incorporates and monitors safety rules as well as type-certification of aircrafts and components, among others.
Meanwhile, CAAP is responsible for establishing policies on Philippine civil aviation as well as implementing rules and regulations for aircraft and air facilities in the country.
AAG Philippines' Airplane Simulator Training Device includes a course on the A320-200, including initial, recurrent, and refresher trainings.
"Our EASA certificate and CAAP accreditation mark another milestone for AAG Philippines and our mission of delivering quality aviation training services to our partners in the airline industry," said Merit Gabriel, Vice President-Commercial, AAG Philippines.
The FSTD Qualification Certificate is awarded when an organization's roles and responsibilities satisfy industry standards. There are four types of FSTDs, namely, the full flight simulator, flight training device, flight navigation procedures trainer, and basic instrument training device.
To ensure safety and excellent training of pilots, FSTD standards undergo periodic evaluations. This strengthens the credibility of the international criteria that sustains trainings within UK Type Rating Training Organizations as per the Civil Aviation Authority International (CAAI).
These standards oversee the consistent quality of the device and simulator operator through regular technical evaluation, quality system assessment, and standard audits within regulatory requirements.
"We are very proud of this achievement, which reinforces our commitment to global civil aviation standards," said AAG general manager Nigel Harris.
CEB Dominates Local Cargo Market
Manila Bulletin
December 12, 2012
The country's largest national flag carrier, Cebu Pacific (CEB) dominated the domestic cargo market, with a 48% share from January to September 2012, according to Civil Aeronautics Board (CAB) data.
CEB carried 70.4 million kilograms in cargo in the first nine months of 2012, more than the 62 million kilograms combined cargo loads of Philippine Airlines and Airphil Express, the carrier announced.
"This highlights Cebu Pacific's extensive domestic route network and preferred cargo services," CEB VP for Marketing and Distribution Candice Iyog pointed out. "With multiple daily flights to most key cities in the Philippines, cargo forwarders and shippers trust CEB to link islands together in the fastest time."
CEB also led the domestic cargo market in 2011 with close to 89.5 million kilos carried for the full year.
"We currently serve more than 2,000 accounts, tailor-fitting cargo products to our clients' domestic and international cargo needs. This includes express cargo service, seamless transshipment and 16 interline partnerships for worldwide reach," Iyog added.
CEB Cargo has partnered with the GMA Kapuso Foundation in shipping relief goods to families affected by typhoon "Pablo" in Cebu, Surigao and Compostela Valley.
It remains a consistent partner of the GMA Kapuso Foundation for its Give-A-Gift: Alay sa Batang Pinoy project, where customized Christmas packages are given to underprivileged children all over the Philippines.
CEB currently operates 10 Airbus A319, 23 Airbus A320 and 8 ATR-72 500 aircraft. Its fleet of 41 aircraft is the one of the most modern fleets in the world.
Between 2013 and 2021, Cebu Pacific will take delivery of 19 more Airbus A320 and 30 Airbus A321neo aircraft orders. It is slated to begin long-haul services in the 3rd quarter of 2013, with the arrival of 2 Airbus A330 aircraft.
December 12, 2012
The country's largest national flag carrier, Cebu Pacific (CEB) dominated the domestic cargo market, with a 48% share from January to September 2012, according to Civil Aeronautics Board (CAB) data.
CEB carried 70.4 million kilograms in cargo in the first nine months of 2012, more than the 62 million kilograms combined cargo loads of Philippine Airlines and Airphil Express, the carrier announced.
"This highlights Cebu Pacific's extensive domestic route network and preferred cargo services," CEB VP for Marketing and Distribution Candice Iyog pointed out. "With multiple daily flights to most key cities in the Philippines, cargo forwarders and shippers trust CEB to link islands together in the fastest time."
CEB also led the domestic cargo market in 2011 with close to 89.5 million kilos carried for the full year.
"We currently serve more than 2,000 accounts, tailor-fitting cargo products to our clients' domestic and international cargo needs. This includes express cargo service, seamless transshipment and 16 interline partnerships for worldwide reach," Iyog added.
CEB Cargo has partnered with the GMA Kapuso Foundation in shipping relief goods to families affected by typhoon "Pablo" in Cebu, Surigao and Compostela Valley.
It remains a consistent partner of the GMA Kapuso Foundation for its Give-A-Gift: Alay sa Batang Pinoy project, where customized Christmas packages are given to underprivileged children all over the Philippines.
CEB currently operates 10 Airbus A319, 23 Airbus A320 and 8 ATR-72 500 aircraft. Its fleet of 41 aircraft is the one of the most modern fleets in the world.
Between 2013 and 2021, Cebu Pacific will take delivery of 19 more Airbus A320 and 30 Airbus A321neo aircraft orders. It is slated to begin long-haul services in the 3rd quarter of 2013, with the arrival of 2 Airbus A330 aircraft.
Tuesday, December 11, 2012
Hong Kong Air Seeks A380 Order Swap for Smaller Aircraft
Manila Bulletin
December 11, 2012
By Jasmine Wang
Hong Kong Airlines, holder of the biggest backlog of Airbus SAS A380 orders in Asia, is seeking to swap some planes for smaller models because of a new focus on short-haul routes.
The carrier is discussing changing at least some of its 10 on-order A380s for A330s, and delaying deliveries, President Yang Jianhong said by phone yesterday, without giving a timeframe for when talks may be concluded. Airbus doesn’t comment on negotiations with customers, said spokesman Sean Lee.
Hong Kong Air, which is backed by China’s HNA Group, said in August it was reviewing the A380 orders after a slump in long-haul travel caused by slower growth in Europe. The slowdown has also forced Cathay Pacific Airways Ltd. (293), Hong Kong’s biggest carrier, to pare capacity and begin a cost-cutting drive.
“We won’t resume long haul routes in the short term,” Yang said. “Now, we are trying to do a better job in operations.”
Airbus, based in Toulouse, France, held 168 orders for A380s at the end of October, based on data on its website. That included the 10 from Hong Kong Air and five from Indian carrier Kingfisher Airlines Ltd. (KAIR), which suspended services in October. The double-decker plane carries about 525 passengers and has an average list price of $389.9 million.
Regional Focus
Hong Kong Air’s focus on regional services means it will make a profit this year, Yang said, without giving a detailed forecast. The closely held carrier is also winning back customers after disruptions during a typhoon, he said. Hong Kong’s aviation regulator capped the size of the airline’s fleet after the cancelations because of concerns about the carrier’s ability to manage a larger operation. There are no safety issues about its current size.
Hong Kong Air is also seeing “pretty good” travel demand for the Christmas period, except for Japan, Yang said. Cathay Pacific is facing possible industrial action by cabin crew then because a pay dispute.
Hong Kong Air ended an all-business class service to London earlier this year as it withdrew from long-haul routes. It has also delayed the arrival of six Boeing Co. (BA) 777 freighters to at least mid-2014 from next year. The carrier and affiliate Hong Kong Express fly to about 30 cities, mainly in China, based on its website.
Hong Kong Express will complete its transformation into a low-cost carrier by May or June, Yang said. The carrier will compete with Qantas Airways Ltd. (QAN) and China Eastern Airlines Corp.’s Jetstar Hong Kong, which is due to start flying in the first half of next year. Spring Airlines Co., China’s biggest privately-owned carrier, is also considering a venture in Hong Kong as part of an overseas expansion push.
December 11, 2012
By Jasmine Wang
Hong Kong Airlines, holder of the biggest backlog of Airbus SAS A380 orders in Asia, is seeking to swap some planes for smaller models because of a new focus on short-haul routes.
The carrier is discussing changing at least some of its 10 on-order A380s for A330s, and delaying deliveries, President Yang Jianhong said by phone yesterday, without giving a timeframe for when talks may be concluded. Airbus doesn’t comment on negotiations with customers, said spokesman Sean Lee.
Hong Kong Air, which is backed by China’s HNA Group, said in August it was reviewing the A380 orders after a slump in long-haul travel caused by slower growth in Europe. The slowdown has also forced Cathay Pacific Airways Ltd. (293), Hong Kong’s biggest carrier, to pare capacity and begin a cost-cutting drive.
“We won’t resume long haul routes in the short term,” Yang said. “Now, we are trying to do a better job in operations.”
Airbus, based in Toulouse, France, held 168 orders for A380s at the end of October, based on data on its website. That included the 10 from Hong Kong Air and five from Indian carrier Kingfisher Airlines Ltd. (KAIR), which suspended services in October. The double-decker plane carries about 525 passengers and has an average list price of $389.9 million.
Regional Focus
Hong Kong Air’s focus on regional services means it will make a profit this year, Yang said, without giving a detailed forecast. The closely held carrier is also winning back customers after disruptions during a typhoon, he said. Hong Kong’s aviation regulator capped the size of the airline’s fleet after the cancelations because of concerns about the carrier’s ability to manage a larger operation. There are no safety issues about its current size.
Hong Kong Air is also seeing “pretty good” travel demand for the Christmas period, except for Japan, Yang said. Cathay Pacific is facing possible industrial action by cabin crew then because a pay dispute.
Hong Kong Air ended an all-business class service to London earlier this year as it withdrew from long-haul routes. It has also delayed the arrival of six Boeing Co. (BA) 777 freighters to at least mid-2014 from next year. The carrier and affiliate Hong Kong Express fly to about 30 cities, mainly in China, based on its website.
Hong Kong Express will complete its transformation into a low-cost carrier by May or June, Yang said. The carrier will compete with Qantas Airways Ltd. (QAN) and China Eastern Airlines Corp.’s Jetstar Hong Kong, which is due to start flying in the first half of next year. Spring Airlines Co., China’s biggest privately-owned carrier, is also considering a venture in Hong Kong as part of an overseas expansion push.
Manila Aviation Safety Improvement Recognized
Manila Bulletin
December 11, 2012
The European Commission (EC) has recognized the efforts of the safety oversight authority of the Philippines in reforming the civil aviation system and improve safety guarantee that international safety standards are effectively and consistently applied.
The EC is ready to provide active further support for these reforms in cooperation with International Civil Aviation Organization (ICAO), EU member-states and the European Aviation Safety Agency (EASA) in order to help some countries to get off the list of carriers banned from operating in the European Union.
The EC has committed to supporting better compliance with international safety standards whenever possible and has mandated EASA to carry out a series of technical assistance missions to support the competent authorities of a number of states in their efforts to enhance safety.
It has adopted the 20th update of the European list of air carriers which are subject to an operating ban or operational restrictions within the European Union, better known as "the EU air safety list."
Because of important safety concerns, air carriers certified in Eritrea have been added to the list.
On the other hand, following improvement in the safety situation in Mauritania , it was possible to remove from the list all air carriers certified in Mauritania .
The same was true for the Jordan carrier Jordan Aviation, which was also removed from the list. Progress was also noted in Libya but the Libyan authorities agreed that Libyan carriers would not be permitted to operate to Europe until they are fully recertified to the satisfaction of the EC.
EC vice president Siim Kallas, responsible for transport, said: "The Commission is ready to spare no effort to assist countries affected by the safety list in building technical and administrative capacity to overcome the difficulties in the area of safety as quickly and as efficiently as possible."
"I am glad that one country and several airlines have been removed from the list. This is important progress. But safety must always come first and we cannot accept any compromise in this area, hence the decision on Eritrea."
December 11, 2012
The European Commission (EC) has recognized the efforts of the safety oversight authority of the Philippines in reforming the civil aviation system and improve safety guarantee that international safety standards are effectively and consistently applied.
The EC is ready to provide active further support for these reforms in cooperation with International Civil Aviation Organization (ICAO), EU member-states and the European Aviation Safety Agency (EASA) in order to help some countries to get off the list of carriers banned from operating in the European Union.
The EC has committed to supporting better compliance with international safety standards whenever possible and has mandated EASA to carry out a series of technical assistance missions to support the competent authorities of a number of states in their efforts to enhance safety.
It has adopted the 20th update of the European list of air carriers which are subject to an operating ban or operational restrictions within the European Union, better known as "the EU air safety list."
Because of important safety concerns, air carriers certified in Eritrea have been added to the list.
On the other hand, following improvement in the safety situation in Mauritania , it was possible to remove from the list all air carriers certified in Mauritania .
The same was true for the Jordan carrier Jordan Aviation, which was also removed from the list. Progress was also noted in Libya but the Libyan authorities agreed that Libyan carriers would not be permitted to operate to Europe until they are fully recertified to the satisfaction of the EC.
EC vice president Siim Kallas, responsible for transport, said: "The Commission is ready to spare no effort to assist countries affected by the safety list in building technical and administrative capacity to overcome the difficulties in the area of safety as quickly and as efficiently as possible."
"I am glad that one country and several airlines have been removed from the list. This is important progress. But safety must always come first and we cannot accept any compromise in this area, hence the decision on Eritrea."
Wednesday, December 5, 2012
Cathay Union threatens action in absence of talks on wages
Business Mirror
December 5, 2012
CATHAY Pacific Airways Ltd.’s flight attendants union, which represents more than 5,800 airline cabin crew members, threatened industrial action if the carrier doesn’t agree to hold wage talks by 3 p.m. on Tuesday.
The Flight Attendants Union will set up a preparation committee for possible action, including work to rule or a strike, if the carrier declined the demand, Tsang Kwok-fung, a spokesman, said by phone on Tuesday. Elin Wong, a spokesman for the airline, didn’t immediately respond to an e-mail seeking comment.
More than 100 flight attendants staged a rally at Hong Kong’s airport on Monday after the company said last week it would raise salaries by about 2 percent next year, less than the 5 percent sought by the workers’ union.
Cathay on Monday reiterated its position on pay increments and urged the union to remain calm and put the interest of the public first.
Shares of the carrier fell 0.8 percent to HK$13.30 as of 11:40 a.m. in Hong Kong on Tuesday. The city’s benchmark Hang Seng Index was little changed.
Cathay Chief Executive Officer John Slosar told staff last month the airline faces a “very challenging year” and must cut expenses as it contends with rising fuel costs, declining fares and a cargo slump caused by the economic slowdown.
Hong Kong’s government last month increased its forecast for the city’s full-year inflation rate for 2012 to 3.9 percent from 3.7 percent, citing higher global food prices, the impact of quantitative easing in advanced economies and a renewed pickup in housing rental costs. The CPI increased 3.8 percent in October from a year earlier.
Cathay, which reported a first-half loss, has unveiled cost-cutting measures, including banning spending on festive gatherings, scrapping a management conference and cutting entertainment spending to a “bare minimum.”
December 5, 2012
CATHAY Pacific Airways Ltd.’s flight attendants union, which represents more than 5,800 airline cabin crew members, threatened industrial action if the carrier doesn’t agree to hold wage talks by 3 p.m. on Tuesday.
The Flight Attendants Union will set up a preparation committee for possible action, including work to rule or a strike, if the carrier declined the demand, Tsang Kwok-fung, a spokesman, said by phone on Tuesday. Elin Wong, a spokesman for the airline, didn’t immediately respond to an e-mail seeking comment.
More than 100 flight attendants staged a rally at Hong Kong’s airport on Monday after the company said last week it would raise salaries by about 2 percent next year, less than the 5 percent sought by the workers’ union.
Cathay on Monday reiterated its position on pay increments and urged the union to remain calm and put the interest of the public first.
Shares of the carrier fell 0.8 percent to HK$13.30 as of 11:40 a.m. in Hong Kong on Tuesday. The city’s benchmark Hang Seng Index was little changed.
Cathay Chief Executive Officer John Slosar told staff last month the airline faces a “very challenging year” and must cut expenses as it contends with rising fuel costs, declining fares and a cargo slump caused by the economic slowdown.
Hong Kong’s government last month increased its forecast for the city’s full-year inflation rate for 2012 to 3.9 percent from 3.7 percent, citing higher global food prices, the impact of quantitative easing in advanced economies and a renewed pickup in housing rental costs. The CPI increased 3.8 percent in October from a year earlier.
Cathay, which reported a first-half loss, has unveiled cost-cutting measures, including banning spending on festive gatherings, scrapping a management conference and cutting entertainment spending to a “bare minimum.”
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