CATHAY PACIFIC ANNOUNCES NEW MEASURES TO DEAL WITH BUSINESS DOWNTURN

KUALA LUMPUR, Dec 3 (Bernama) -- Cathay Pacific Airways today announced a
host of fresh measures that will help the airline mitigate a serious downturn
in aviation business arising from the global financial crisis.

The measures include cutting back on planned passenger capacity growth in
2009; offering cabin and cockpit crew the opportunity to take voluntary unpaid
leave; parking two Cathay Pacific freighters; and requesting a deferment
on the construction of the Cathay Pacific Cargo Terminal.

The airline said it is paring back its earlier projection
of 6-7 percent growth in capacity in 2009 to less than 1 percent to reflect the
anticipated decline in demand.

Services on some routes will be adjusted accordingly though the airline is
clear that it plans to keep its network integrity intact and not cut any
destinations, it said in a statement.

The new capacity figure takes into account the airline's previously
announced decision to remove five Boeing 777-200 aircraft from its fleet and
also covers delays in the deliveries of new aircraft as a result of the recent
strike at the Boeing factory in Seattle, it said.

As a result of the lower passenger load growth, the airline will offer a
voluntary unpaid leave scheme for its cabin and cockpit crew.

The 2009 scheme for cabin crew will come into effect on Jan 1, ranging from
two weeks to a maximum of 12 months.

The scheme will apply to all ranks of Hong Kong-based Cathay Pacific's
7,000
cabin crew, it said.

Unpaid leave is also being offered to the airline's pilots on a
voluntary basis, it said.

The airline said it will ensure it has sufficient crew for operational
needs at all times.

The financial crisis is having a severe impact on Cathay Pacific's air
freight business as several of the world's major economies are heading
into recession.

In light of this, the airline will park two Boeing 747-400BCF freighters at
Victorville, California, for a year with effect from January 2009.

Regionally there will be no significant changes to scheduled freighter
schedules though there will be some frequency reductions to Australia, North
America and Europe, it said.

The airline will receive four more new Boeing 747-400 Extended Range
Freighters in 2009 though the delivery of its new Boeing 747-8Fs will now only
begin in 2010.

The airline has also submitted a request to defer construction of the new
Cathay Pacific Cargo Terminal at the Hong Kong International Airport by up to
two years in a move to keep capacity expansion in line with market growth and to
reduce its capital expenditure in 2009 and 2010.

Discussions are ongoing with the Airport Authority and no further
details can be given until the talks are concluded, it said.

Preliminary work has already begun on the HK$4.8 billion facility, which
was originally scheduled to begin operations in the second half of 2011, it
said.

Despite the requested deferment, Cathay Pacific remains committed to
building the terminal and to further developing Hong Kong's position as a
leading international airfreight hub.

Cathay Pacific Chief Executive Tony Tyler said: "This is a very difficult
time for our airline and for the aviation industry as a whole. We cannot see
the light at the end of the tunnel at this point."

Tyler said adjustments to the airline's operating plan for next year
were "necessary" given the expected global drop in demand.

However, the plan may well have to be revised again depending on how things
unfold, he said, adding nothing can be set in stone at the moment.

"Visibility is low and it's hard to predict developments with any real
certainty. Flexibility will be the key word in the months ahead," he added.

-- BERNAMA