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18-May-2016 1:16 PM

Cathay Pacific on hiring freeze; notes necessity to 'contain costs further'

Cathay Pacific CEO Ivan Chu Kwok-leung, in the carrier's CX World Magazine, called (17-May-2016) on all departments to curb spending by "stopping all non-essential discretionary expenditure," freeze hiring or replacing "non-operationally critical staff," and to review operational budgets. "It is now necessary for us to contain costs further," he said. Mr Chu said business challenges have become more acute in recent weeks, with continued pressure on its cargo business being compounded by "a weakening trend in the passenger business". Mr Chu said yield is "coming under ever-more pressure" at the airline and that the three key measures to cut costs will take immediate effect. He did not give a target or timeframe, though he described the drive as "short-term." Mr Chu said "big-ticket items that will help to build a better, stronger airline would not be affected", such as the reopening of its business class lounge The Pier, the opening of its new Madrid route, and delivery of its A350 during May-2016. [more - original PR]

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