Indian route is very profitable, says Cathay Pacific official

CHENNAI, DEC. 18: 

With 80 per cent passenger load factor in its aircraft, India is a top destination for Cathay Pacific Airways to focus. India and China are the fastest growing destinations for the airline, said Tom Wright, its General Manager, South Asia, Middle East and Africa.

The Indian route is very profitable, he told newspersons.

“We are comfortable with 75-80 per cent load factor. If it goes beyond that, it will create a spill over effect,” he said at the launch of the airline’s new business class and new premium economy cabins on the Chennai-Hong Kong route from January 1.

TURBULENT TIME

The global aviation sector is going through a turbulent time while the Indian market is at a ‘low point.’

The plan of foreign direct investment in India’s aviation sector is a ‘great idea,’ he said. Wright made it clear that currently there is no interest in Cathay Pacific to investin Indian airlines.

“It (investing) is not a bad idea, but it is not a business model that the airline follows,” he said. On the new in-flight products in its A330-300 aircrafts, Wright said that following the recent increase of flights from four times a week to a daily service, Chennai will be first city in South India to offer a three-class configuration – new business class, premium economy class and the new long-haul economy class.

The airline had earlier launched this facility in its Delhi-Hong Kong route.

The return fare on the Chennai-Hong Kong route for the new business class will be Rs 86,000; for premium economy class it is Rs 40,000 and for economy class it is Rs 35,000 (this is a promotional offer for two months).

EXPANSION TO OTHER CITIES

On plans to expand to other Indian cities, Wright said that the airline had used all its traffic rights.

The airline hopes that new premium economy class could be an attraction for long-haul passengers.

From India, 30-40 per cent of passengers’ final destination is Hong Kong, South China or Macau.

The rest proceed to countries such as the US, Japan and Australia.

This class provides comfort with more spacious cabins than the traditional economy class. The seat itself is wider and has a bigger recline, he said.

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