Cathay Pacific to emerge as a winner: CEO
Cathay Pacific CEO, Tony Tyler, stated the aviation industry is "all about the tight balance between capacity and demand and you only need demand to sink a little bit and suddenly you're losing lots of money" (NZ Herald, 31-Jul-2010). Mr Tyler added the industry will report a "pathetically small profit margin" in 2010. He said the carrier will now significantly grow its China and India business, adding: "Every airline's piling into China as fast as they can but we're very well positioned to play the revenue management game in China, being part of the country." Mr Tyler believed the airline is in "very good shape". "We're going to emerge as one of the winners, for sure," he said.
Cathay Pacific: "The European carriers are still struggling quite a bit because the economies in Europe are still quite weak, the premium traffic hasn't rebounded anything like the extent it has in Asia, they're less robust and the competitive environment there is pretty tough for them with all the new-generation carriers ... What we're seeing now in this region, and Cathay Pacific is certainly seeing this, is a pretty strong recovery, particularly those key markets of premium and cargo ... We're blessed by geography, we're part of China which didn't really have a recession, in fact, it accelerated while everybody else was slowing down," Tony Tyler, CEO. Source: NZ Herald, 31-Jul-2010.
Cathay Pacific: "Whenever there's a recession people say, 'Well, this is going to finally force the industry to behave like other industries and have consolidation'. I take a contrary view to that because the reason why there isn't consolidation is that traffic rights belong to sovereign states and sovereign states basically allow their own airlines to operate those traffic rights and, generally speaking, not other airlines," Tony Tyler, CEO. Source: NZ Herald, 31-Jul-2010.