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IATA: Long-haul, low-cost not in Cathay's plans

Cathay Pacific chief executive John Slosar is hoping the recent easing in the fuel burden for airlines is here to stay, as Brent crude barrel prices dipped under the $100 level this month.

It provides much-needed relief as the aviation environment has been tough over the last 10 months, especially with robust fuel prices and the uncertain economic situation.

Cathay recently announced cost-cutting measures, including trimming capacity on long-haul routes and the early retirement of aircraft, as it warned of disappointing first-half earnings.

Slosar also ruled out starting long-haul, low-cost operations, a path that rival Singapore Airlines has taken through Scoot. "I don't see a case particularly for long-haul, low-cost. With the fuel price, the only way you can lower cost is if there's no real service or by cramming the seats," he says.

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