NEW BUSINESS STRATEGY
Cathay shares cheer plans to revamp group
Asia’s biggest international airline plans to shorten its fuel-hedging programme and revamp its workforce
Singapore — Cathay Pacific Airways, Asia’s biggest international airline, plans to shorten its fuel-hedging programme and revamp its workforce as part of a new business strategy to halt a slide in earnings. The shares jumped the most in nine months. The carrier "won’t hedge as far forward as we have in the past" and will "rethink its workforce", chief operating officer Rupert Hogg told the South China Morning Post in comments confirmed by Cathay Pacific on Monday. The Hong Kong-based airline plans to reassign employees from some outdated roles to new jobs that are better aligned with a "digital focus", while "never saying never" to redundancies, he said. Cathay Pacific is set to unveil a new strategy on Wednesday following a "critical review" of its business as mounting competition from Chinese and Middle Eastern carriers caused the airline in October to scrap its second-half outlook. CEO Ivan Chu, who took the helm in March 2014, had said the carrier planned to continue with its fu...
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