By Jamie Freed
SYDNEY (Reuters) – Hong Kong’s Cathay Pacific Airways Ltd said on Monday it was evaluating whether to send some of its planes to less humid locations for storage as it revises its fleet size in light of falling demand due to the pandemic.
Rivals Singapore Airlines Ltd, Qantas Airways Ltd, and Air New Zealand Ltd have already shipped some long-haul aircraft to deserted locations in Australia and the United States for long-term storage and possible early retirement with the expectation that falling demand. will continue.
Cathay is examining plans to store more than 50 wide-body aircraft from its fleet of about 236 aircraft outside Hong Kong in less humid places like Dubai and the Australian desert, a source familiar with the matter told Reuters on condition of anonymity.
Cathay declined to comment on the number being considered for storage, but said they came from several different fleets within the group, which operates the Cathay Pacific, Cathay Dragon and Hong Kong Express brands.
“We are exploring alternative locations beyond Hong Kong’s humid summer weather that may provide appropriate conditions for our planes while they are not flying,” Cathay said in a statement in response to questions from Reuters. “This is a prudent decision from an asset management perspective.”
The airline previously said it is conducting a comprehensive review of its operations and will make a recommendation to the board on the group’s optimal future size and shape for the fourth quarter.
Cathay said last month that he would receive a $ 5 billion rescue package to help him resist the coronavirus pandemic, led by the Hong Kong government.
(Reporting by Jamie Freed; Edition by Stephen Coates)
