Air Transport

Cathay Pacific chief executive Tony Tyler has hit out at suppliers who still charge high prices despite the economic crisis.

Reflecting on "the most challenging time for the aviation industry" in his 30 years of involvement, he says that he sees only "one or two green shoots across the entire paddy field".

Aiming his barbs at suppliers while speaking at the recent Asian Aerospace International Expo and Congress 09 in Hong Kong, Tyler said: "We keep hearing that we are in this together, but you won't believe it if you see the way airlines are being treated."

© Billypix "There is no doubt that the full service model will stay, but it needs tinkering" Tony Tyler Chief executive,Cathay Pacific

The cost of everything from aircraft seats to in-flight entertainment kits are going up, when it should be the aim of suppliers to keep cost down, he says. "It is absurd to expect an industry that is projected to lose $9 billion this year to keep paying these higher costs," Tyler says. "If we don't grow, the suppliers don't grow."

Looking at the aviation market, he says that there are worries that the changes in air travel may be structural rather than cyclical. Cathay has a team looking into this issue, and Tyler adds that there could be changes in the way the airline runs its operations.

While low-cost carriers have "upped the ante" throughout the world, he believes that there will continue to be passengers who want something extra in flights, and that is especially true in Asia.

"There is no doubt that the full service model will stay, but it needs tinkering. The reality is that airlines are going to have to face up to a whole array of challenges," says Tyler.