Financial Round Up
Yield decline at Cathay
January 20th 2015
Analysts are predicting yield declines, and subsequent cost cuts, at Cathay Pacific Airways’ passenger and cargo operations in financial year 2014-15. Read More »
Talking to the South China Morning Post, Hong Kong-based Daiwa analyst, Kelvin Lau, said “the outlook for 2015 remained challenging” and forecast a 3% drop in passenger yield and a 6.5% drop in cargo yield for the financial year ending March 31. Lau’s prediction is in line with previous statements from top executives at Cathay Pacific who said the airline was facing “a falloff in demand in the premium cabins”.
Meanwhile, Hong Kong is set on becoming the first choice financial centre for Asia’s rapidly expanding aircraft leasing business as its chief executive, Leung Chun-ying, revealed in last week’s annual policy address. As such, changes to the city’s tax regime are expected to attract more lessors to the market. Hong Kong-based lessor, China Aircraft Leasing Co. (CALC), has emerged as an aggressive entrant, last week firming a previously-announced $10.2 billion deal with Airbus to purchase 100 A320 Family aircraft comprising 74 A320neo, 16 A320ceo and 10 A321ceo, w3ith deliveries from 2016 to 2022.
