Hong Kong citizens who have cleared the customs are more willing to travel abroad, which has stimulated a sharp rise in air ticket prices in many popular tourist destinations. Cathay Pacific (0293) new CEO Lin Shaobo pointed out that he is working hard to restore its capacity. At the end of last year, 40 aircraft were temporarily parked in the Australian desert, and they are now in succession. Arrange passenger planes to return to Hong Kong, "every month there will be an opportunity to return to Hong Kong", I believe that after the number of flights increases, the ticket price will return to normal.
However, the manpower recruitment plan has been adjusted, and the latest target is to hire 3,000 people within the year.
Social recovery Cathay Pacific has already stated that it will increase its manpower. The group’s new CEO Lin Shaobo pointed out in an interview with “Hong Kong 01” and other media that the group recruited 2,000 people at the end of last year and plans to recruit another 3,000 people this year, including pilots, cabin attendants and Various positions such as ground staff look forward to rebuilding Cathay Pacific and improving service levels.
Asked about changes in the newly announced recruitment plan, Cathay Pacific's new CEO Lin Shaobo pointed out that adjustments should be made according to the actual business situation.
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Cathay Pacific announced in June last year that it would hire 8,000 more people by the end of this year to meet its operational needs in the next 18 to 24 months.
Asked about the changes in the newly announced recruitment plan, he explained that adjustments should be made according to the actual business situation. In addition, the turnover rate of employees has also changed. back to normal levels before the pandemic.
According to Cathay Pacific's semi-annual report, as of the end of June 2022, the Cathay Pacific Group will employ more than 20,800 employees worldwide, a decrease of about 800 from the end of 2021, and the number of employees in Hong Kong will be about 17,000.
The Chinese mainland gradually opened and closed at the beginning of this year. When asked whether Cathay Pacific would consider raising the capacity recovery target, Lin Shaobo replied that when formulating the transport capacity target last year, the forecast of China’s opening and closing has been included. The situation is roughly similar to the forecast, so there is no need to increase it capacity target.
(Photo by Liao Yanxiong)
The capacity target has taken into account customs clearance in the Mainland and no increase is required
However, the general plan for the overall flight recovery remains unchanged. Lin Shaobo pointed out that the goal is to further restore the passenger capacity to 70% of the pre-epidemic level by the end of this year, and fully return to the pre-epidemic level by the end of next year.
Mainland China was gradually opened and closed at the beginning of this year, and passenger demand increased. Asked whether Cathay Pacific would consider raising its capacity recovery target, Lin Shaobo replied that when formulating the transport capacity target last year, the forecast of China’s opening and closing had been included, and the situation was roughly similar to the forecast. Therefore, there is no need to increase the capacity target.
From 7:00 a.m. on the first day of the Lunar New Year on January 22, people at Hong Kong Airport became busy. Many people took advantage of the Chinese New Year holiday to travel by plane to Japan, Thailand, South Korea and other places.
(Photo by Zheng Zifeng)
At the end of last year, 40 aircraft were temporarily parked in the desert and returned to Hong Kong every month
During the epidemic, Cathay Pacific parked 70% of its aircraft in the desert of Alice Springs, Australia. Last year, the group announced that it would transfer all of its fleet back to Hong Kong in order to resume more flights.
Lin Shaobo revealed that for Hong Kong Express, all planes had been shipped back to Hong Kong by the end of last year.
Regarding Cathay Pacific passenger transport, there were still about 40 planes parked in the Australian desert at the end of last year, and now they are gradually arranging passenger planes to return to Hong Kong.
As for the cargo aircraft, all of them have been serving in Hong Kong.
During the epidemic, Cathay Pacific had parked 70% of its planes in the Alice Springs desert in Australia. Lin Shaobo revealed that there were still about 40 planes parked in the Australian desert at the end of last year. Every month there is an opportunity to return to Hong Kong."
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Repay the money to the government "with interest" as soon as possible
Cathay Pacific issued a profit warning this month. It is expected that the loss for the whole year of last year will be about 6.4 billion to 7 billion yuan, an increase from the loss of 5.5 billion yuan in 2021.
The loss was mainly affected by the huge loss recorded by the affiliated company Air China (0753).
Lin Shaobo pointed out that the group's finances were hit hard during the epidemic, and it will rebuild its finances in the next three years. He also said that he will repay the loan to the government "with principal and interest" as soon as possible. However, there is no timetable at present, and it depends on this year's performance.
According to the announcement, Cathay Pacific received capital injection from the government in June 2020, including spending 19.5 billion yuan to subscribe for preferred shares issued by Cathay Pacific, and the dividends of preferred shares are increasing year by year, 3% in the first three years, 5% in the fourth year, and 5% in the fifth year 7%, the rest is 9%, and the interest is paid every six months.
Asked whether the government would have guidelines for Cathay Pacific's repayment of financial aid, Lin Shaobo said that "at that time, no one thought that the epidemic would last for a long time." The Hong Kong government's orientation towards Cathay Pacific has always been supportive and encouraging.
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Asked whether the government would have guidelines for Cathay Pacific's repayment of financial aid, or whether there would be pressure to repay the loan, Lin Shaobo responded that the government's capital injection to Cathay Pacific was implemented during the 2020 epidemic. "At that time, no one thought that the epidemic would last for a long time."
The Hong Kong government has always been supportive and encouraging towards Cathay Pacific. Two observers appointed to the Cathay Pacific Board of Directors have been actively providing guidance and support.
The Japanese authorities have not fully relaxed the restrictions on the number of flights from Hong Kong to Japan. Lin Shaobo pointed out that he has consulted with the Japanese government through different channels.
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Expect ticket prices to fall back to normal levels
Asked about the sales of air seats during the Easter holiday, he pointed out: "Hong Kong people tend to buy air tickets late", and there is no clear data to predict the sales.
Regarding the continuous increase in ticket prices after the resumption of the switch in Hong Kong, he responded that as the supply of flights continues to increase, he hopes that the ticket price will fall back to the normal level as soon as possible.
The Japanese authorities have not fully relaxed the restrictions on the number of flights from Hong Kong to Japan. From mid-February to early March, more than 150 flights to and from Japan by Cathay Pacific and its Hong Kong Express were cancelled. Lin Shaobo pointed out that he has negotiated with the Japanese government through different channels. I know that the Hong Kong government has also communicated with the Japanese government.
Flight restrictions in Japan｜Cathay Pacific Regrets Cancellation of Tokyo, Osaka, and Fukuoka Flights from 2.3 to 3.2 Cathay Pacific has announced the cancellation of some Japanese flights from February to March!
Tokyo/Osaka/Nagoya/Fukuoka HK Express and Cathay Pacific cancel several flights to and from Japan from February 17th to March 2nd Cathay Pacific warns that it will lose up to 7 billion yuan last year CEO expects passenger capacity to return to 70% before the epidemic by the end of the year Cathay Pacific The flight attendant union initiated the work according to the rules and issued an open letter to reiterate that it is imperative to ask colleagues to understand Cathay Pacific CEO Lin Shaobo: some of the previous ways of doing things are no longer competitive and need to be changed.
Cathay Pacific intends to hire 8,000 people by the end of next year to replace the restructured positions CEO: the salary is competitive
