Cathay Pacific embarks on business review; sees risk of structural changes
Cathay Pacific CEO, Tony Tyler, told staff in an Aug-2009 internal magazine that the airline has launched a review of its business model, warning the current model "might not be sustainable, if we have to face up to a 'new normal' in our business". The review, headed by Director Information Management, Ed Nicol, will look at cost management, as well as revenue initiatives and to "assess what configurations we may need".
Cathay Pacific: "Now we need to take a long hard look at how to make our business succeed if things don't improve on the revenue side. We suimply cannot afford to see our cash levels continue to be depleted even as our debt levels rise, and if the current collapse in premium revenues and cargo turns out to be structural rather than cyclical, we may need a fundamental change in the way we do things", Tony Tyler, CEO. Source: CX World, 25-Aug-2009