Cathay Pacific Airways has parked a Boeing 747-200 freighter and is planning to ground another and around four passenger aircraft as traffic and yields remain depressed following the US attacks. Cathay is widely expected to ground two 747-400s, following capacity cuts across much of its network.

The airline warns that 2002 will be a difficult year. It is more exposed to the drop-off in long-haul traffic than some other carriers in the Asia-Pacific as it has no domestic traffic base, does not fly to mainland China where traffic is still strong, and relies heavily on revenues from US and Japanese services, which are suffering particularly badly.

It is not alone in suffering, however. Singapore Airlines, also heavily reliant on long-haul traffic, is seen by most analysts as now operating in the red. It too has slashed frequencies and delayed deliveries of new aircraft on firm order.

Not all is negative in the Asia-Pacific, however. In China, domestic traffic is still strong, as it is in Indonesia. Qantas Airways in Australia says there are some signs of a recovery in international traffic. South Korea's Asiana Airlines and Korean Air say the same.

Source: Airline Business