The challenging environment is expected to persist in 2006. Hong Kong’s Dragonair stated last week that fuel is again the “wild card” in 2006 and the airline will “do all we can” to control other costs and generate more revenue with the aim of delivering overall growth.
Meanwhile, Cathay Pacific CEO, Philip Chen, expects competitive pressure to intensify in 2006 and called on staff to “fight for every market”. In an in-house magazine article, Mr Chen recently stated, “it will not be an easy ride [in 2006]. The already competitive environment in which we operate is set to intensify. [Profit] margins are already being eroded and that means we have to work aggressively to meet cost and productivity targets”.
News such as this delivered daily to your inbox from the Centre's Asia Pacific Airline Daily. Click the icon below for more information.
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.