NewsWeek Cathay suffers first-half loss


HONG Kong-based carrier Cathay Pacific has reported a loss of HK$935 million (US$121 million) for the first half of this year, contrasting starkly with the HK$2.8 bil- lion (US$362 million) profit achieved in the same period of 2011. High fuel prices and weak


cargo demand were cited as factors that “significantly affected” Cathay’s results over the six months. Indeed, cargo revenue fell


by 7.6 percent year-on-year to HK$11.9 billion (US$1.5 bil- lion). Capacity was reduced by 4.3 percent during the period, but the carrier’s load factor still dropped by 4.1 percentage


points to reach 64.3 percent. A statement noted that


demand from Cathay’s two key markets, Hong Kong and mainland China, came in “well below expectations” dur- ing the January - June period, although the airline did intro- duce new freighter services to Zhengzhou (March) and Hyderabad (May) in response to rising demand from those locations. The carrier pointed out


that it adjusted capacity and withdrew less fuel-efficient air- craft in order to maintain its business. Three B747-400 freighters were among the air- craft taken out of service in recent months. However, Cathay has kept


its network intact and is con- tinuing to invest in new, more efficient aircraft as well as in the construction of its new cargo terminal at its home hub, Hong Kong Internation- al airport. Cathay Pacific chairman


Christopher Pratt pointed out: “Aviation will always be a


Pratt: “committed to our long-term strategy”


volatile and challenging indus- try and our business will always be subject to factors ... which are beyond our control. “We will continue to take


whatever measures are neces- sary to protect the business, managing short-term difficul- ties while


remaining


committed to our long-term strategy,” he affirmed, stating his faith in the company’s strong financial position and global network.


Qantas to sell off road arm


AUSTRALIAN carrier Qantas has confirmed that it plans to sell off its 50 percent stake in Star Track Express, its joint venture trucking business with Australia Post. The airline said that the sale


would take place when market conditions were favourable. The sale of the trucking


arm is part of a wider move by Qantas to dispose of non-core assets. Chief executive Alan Joyce said that logistics and trucking was not seen as a cen- tral business activity over the long term. Star Track has also


consistently failed to live up to growth expectations since the share in the business was acquired in 2003. Market analysts estimated


that the sale could bring Qan- tas around AUS$290 million (US$304 million), with Aus- tralia Post seen as the most likely buyer. Qantas’ other joint venture


with Australia Post, wholesaler Australian Air Express, has also been the subject of specula- tion. But Qantas described it as a core business and said it was not for sale.


Turkish Cargo chooses GLSHK


TURKISHCargo has selected the EzyCargo e-freight solu- tion from Hong Kong's Global Logistics System (HK) Co Ltd (GLSHK) to transmit electronic air waybill (e-AWB) data from the airline’s cus- tomers in Asia Pacific and Central Asia. Huseyin Ceyhan, regional


cargo director at Turkish Cargo, remarked: “e-freight is the world’s trend and we are


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aggressively moving towards this direction, particularly in our blossoming markets in Asia Pacific and Central Asia.” According to Lionel Kwok,


CEO at the electronic messag- ing specialist, the deal with Turkish “reaffirms GLSHK’s position as the preferred solu- tion provider in e-freight, especially in Asia Pacific region where we demonstrate our strong presence”.


20 August 2012


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