NICHOLAS IONIDES / SINGAPORE

Carrier to add medium size freighters to fleet for Asia

Hong Kong's Cathay Pacific Airways is planning an expansion of its cargo operation that should see it adding its first medium-size freighters for use on intra-Asian regional routes.

The carrier operates four Boeing 747-200Fs and five -400Fs, and has three more -200Fs that it leases to all-cargo subsidiary Air Hong Kong.

Industry sources say Cathay has been considering the addition of freighters in the Airbus A300-size category, and has held informal talks with a number of suppliers. Those talks have been stepped up, with the airline meeting potential suppliers at the Asian Aerospace 2002 air show last month.

While sources stress the carrier has not taken a firm decision on aircraft types or the number to be acquired on lease or purchase arrangements, Cathay could acquire five to 10 aircraft. It would be the first major Asian airline to fly medium-size freighters. Rival Singapore Airlines, for example, sees no need for what it calls "baby freighters".

The addition of medium-capacity freighters will represent a shift in cargo focus for the airline, which, like Air Hong Kong, focuses primarily on long-haul services.

Cargo operations suffered badly last year, however, as a result of overcapacity in the freight market, and the global industry downturn. Cathay's cargo turnover was down 15.6% in 2001 over 2000, while the amount of freight carried fell 8.5% and cargo yields were down 10.6%.

Sources say Cathay may establish a separate freight operation if it goes ahead with regional expansion, possibly using Air Hong Kong as the vehicle. Cathay has recently acquired full control of the carrier.

Cathay could also consider a tie-up with DHL for expanded intra-Asia freighter services. Since March 2000 the airline has had a novel three-year deal with DHL under which it carries express freight overnight to four Asian points on idle Boeing 777 and Airbus A330 passenger aircraft. The partners have considered expanding the work with dedicated freighters.

Cathay declines to comment but says, however, that it has a "very good partnership with DHL" and will "continue to explore co-operation opportunities".

Source: Flight International

Topics