Cathay defers HK cargo terminal
15 / 01 / 2009
CATHAY Pacific Airways has finally confirmed that it will defer its new Hong Kong cargo terminal by up to two years to mid-2013.
“The deferral is aimed at better matching supply and demand in the airfreight business given the current market outlook. It is also important for the company to maintain a strong balance sheet until the market strengthens,” a spokesperson said. “[We] remain fully committed to building and operating the third cargo terminal.”
The facility was originally scheduled for opening in the second half of 2011.
Cathay’s cargo traffic fell by 24 per cent in December from a year before the carrier forecast a weak first quarter in 2009.
“We saw a big decline in goods being carried from the Pearl and Yangtze River Deltas last month, causing a further slump in the Hong Kong market,” said Titus Diu, Cathay’s general manager cargo sales and marketing.
Cathay has been hit by a double whammy of declining global cargo demand and significant losses on fuel hedging.