A similar cut in staff force is also required.
Maybank Kim Eng analysts hope for Cathay to downsize its operations and be less reliant on sixth-freedom traffic. The outdated hub-and-spoke business model needs to make way for a more point-to-point strategy, focusing on strong niche and more lucrative sectors.
"We think Cathay needs to cut 25-33% of its entire network capacity. This equates to 20- 25% of capacity and by extension, a similar quantum cut in staff force is required."
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