mhtaipei
Apr 13, 03, 7:26 am
UNCERTAINTY OVER POSSIBLE FLEET GROUNDING
13 April 2003 Source: Reuters
Cathay Pacific Airways said it would not rule out grounding its passenger fleet as demand for travel into and out of its Hong Kong base is devastated by the deadly SARS outbreak.
"If demand falls still further, we will have to respond accordingly. Clearly we can't rule out any particular course of action, but we will respond to circumstances," Tony Tyler, director of corporate development at Cathay, told Reuters.
He was speaking after an internal Internet memo, seen by Reuters, revealed that Cathay's passenger numbers could fall below 6,000 per day in May, which the memo said could drive the carrier to consider grounding its passenger fleet.
"The notice that was posted to our staff simply reflected the fact that, if things deteriorated, then we'd have to take appropriate steps," Tyler said, referring to the memo, which was posted internally on Friday. "We have absolutely no plans to do that" - cancel all passenger flights, he added.
"We forecast that the number of passengers could fall to less than 6,000 per day in May, in which case we will have to consider grounding the entire passenger fleet," Nick Rhodes, Cathay's director of flight operations, said in an internal memo. "We are literally haemorrhaging cash - approximately US$3 million per day," he said in the email, seen by Reuters.
"The current strategy is simply to stem the bleeding and buy time." Cathay, Hong Kong's largest airline and one of Asia's biggest, said later that it was not currently planning to ground its services.
13 April 2003 Source: Reuters
Cathay Pacific Airways said it would not rule out grounding its passenger fleet as demand for travel into and out of its Hong Kong base is devastated by the deadly SARS outbreak.
"If demand falls still further, we will have to respond accordingly. Clearly we can't rule out any particular course of action, but we will respond to circumstances," Tony Tyler, director of corporate development at Cathay, told Reuters.
He was speaking after an internal Internet memo, seen by Reuters, revealed that Cathay's passenger numbers could fall below 6,000 per day in May, which the memo said could drive the carrier to consider grounding its passenger fleet.
"The notice that was posted to our staff simply reflected the fact that, if things deteriorated, then we'd have to take appropriate steps," Tyler said, referring to the memo, which was posted internally on Friday. "We have absolutely no plans to do that" - cancel all passenger flights, he added.
"We forecast that the number of passengers could fall to less than 6,000 per day in May, in which case we will have to consider grounding the entire passenger fleet," Nick Rhodes, Cathay's director of flight operations, said in an internal memo. "We are literally haemorrhaging cash - approximately US$3 million per day," he said in the email, seen by Reuters.
"The current strategy is simply to stem the bleeding and buy time." Cathay, Hong Kong's largest airline and one of Asia's biggest, said later that it was not currently planning to ground its services.