Staying the course

Cathay Pacific remains unswayed at the need for an LCC

Give Hong Kong’s Cathay Pacific Airways full marks for stubbornness. One of the heavyweights of the Asian airline industry, it has definitely hit a wall, recently reporting a half-year net loss of A$333, its worst six month result in more than two decades. It could be heading for a second consecutive full-year loss for the first time in its history.

Cathay has reported losses in only three years since it was founded in 1946: in 1998 in the aftermath of the Asian financial crisis; in 2008 as the global credit crisis unfolded; and last year as a result of fuel-hedging bets gone wrong and intensifying competition.