Cathay to maintain daily flight schedule

Cathay Pacific will maintain its daily flight schedule despite the heavy competition from new entrants to Sri Lanka.

Country Manager for Sri Lanka and the Maldives, John Holden said the airline has recorded an increase in the number of passengers since June 2009 with the end

of terrorism in the country.

Holden said the airline is promoting more tourists to Sri Lanka from Hong Kong through six packages for Hong Kong citizens through Cathay Holidays, a subsidiary of Cathay Pacific.

"The load factors for the airline have seen a steady increase in August with the holiday travel during the school holidays," Holden told Daily News Business. The improvement in the security situation in Sri Lanka is a major positive point in encouraging travel," Holden said.

Holden said they were happy that the country attracted 42,223 tourists in July 2009, a 28 percent rise compared to July 2008, with the improved security conditions.

"We are optimistic that there can be a further boost for the local tourism industry with more countries updating their travel advisories," he said.

Here are excerpts from the interview.

Q: What are your views on the current status in the aviation business?

A: On the passenger side, regional demand continued to be impacted by Influenza A (H1N1) in July, although there was a pick-up in leisure travel towards the end of the month and into August as concerns eased in some markets. Load factors remained flat compared with last year, despite many airlines significantly reducing capacity, highlighting the continued impact of the global economic downturn on demand. Bookings in the premium cabins remained especially weak which, combined with ongoing aggressive economy class competition and adverse currency movements, continued to affect any real recovery in airline yields.

On the cargo side, the tonnage decline has seen successive reductions since the beginning of 2009. The indications now are that the massive slide in the air cargo market has bottomed out and we were encouraged to see an increase in demand out of our home market, Hong Kong. However, similar to passenger business intense competition is still putting the yield under considerable pressure.

Q: How are Cathay Pacific operations in Sri Lanka faring?

A: In Sri Lanka, we are encouraged by the pickup in leisure travel during the school holidays in August.

The improvement in the security situation in Sri Lanka is a major positive point in encouraging travel. There are many attractive fare and package offers for our customers in August and for the months ahead in 2009.

Q: What are your popular destinations and attractions?

A: With our convenient schedules and world wide network, we continue to serve the Sri Lankan market with superior customer service. Popular destinations include, Singapore, Bangkok, Hong Kong, China, Japan, Korea, North America and Australia.

Q: Any new promotions planned for the Holiday Season from Cathay?

A: Yes. We offer travel packages for the Singapore Grand Prix with hotel accommodation and airport transfers in addition to the tailor-made packages to Bangkok and Hong Kong.

Q: Any new plans to expand into new destinations?

A: Cathay Pacific Airways will launch flights to Jeddah, Saudi Arabia's second major commercial city, from October 25, 2009.

The four-times-weekly service by the Airbus A330-300 aircraft will operate through Dubai on the way to and from Hong Kong.

Q: Do you plan to add more frequencies to the existing schedule?

A: We are reviewing our schedule regularly. Cathay Pacific is committed to serve Sri Lanka and will continue to operate daily flights between Colombo and Hong Kong.

Q: How optimistic are you of Sri Lanka picking up with the end of terrorism?

A: With improved security conditions, we are encouraged to observe that according to statistics issued by the Sri Lanka Tourism Development Authority, the country attracted 42,223 tourists in July, a 28 percent rise compared with July 2008.

With more countries updating their Travel Advisories to reflect the improved security conditions, we are optimistic that there can be a further boost for the local tourism industry.

PM