A View From 30,000 Feet

There is an interview, worth reading if somewhat rambling, with Cathay Pacific Airways chief executive Tony Tyler by Raphael Minder in the FT.

The main news: Tyler also says that Cathay is minded to fund a renewed bid by Air China, in which it has a stake, for China Eastern Airlines following Air China’s rejection of a tie up with Singapore Air. This would boost Cathay’s presence in Shanghai.

Other highlights: it is too early to say what effect the recent severe winter weather will have on airlines’ P&L but there will be a hit that will hurt any airline lacking a padding of cash; China is a tough market for airlines (low yields, fierce competition, seasonal traffic); and the Beijing Olympics will kill this summer’s business travel market, more than offsetting the boost to tourism.

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Filed under Economy, Markets

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