China’s economy face significant threats of a fall-out from the US credit crisis, but business leaders are holding out hopes for a bright future due to abundant opportunities in the region.
This according to speakers at Bloomberg’s 2008 Leadership Forum, held recently in Hong Kong.
Specifically looking at this problem Cathay Pacific, while insulated from the credit crunch due to its minimal debt levels, has had to grapple with the problem of high fuel prices. However, the managing director, Tony Tyler noted that demand for flights ‘remains very strong in our key markets.’
He said, ‘It’s very difficult to make money out of flying long haul. You’re burning more fuel per mile flying long haul than short haul . . . We’re reshaping the network, cutting some Los Angeles, Vancouver routes, but we’re adding flights to Australia, Middle East.’
Source: Insead Knowledge