Cathay Pacific : flying through turbulent times

Abstract

After recovering from the Asian financial crisis at the end of the 1990s, Cathay Pacific was to confront a number of difficulties in 2001. Amid the growing competition amongst airline carriers worldwide, a long-standing dispute between the company and its pilots surfaced again in the middle of the year and resulted in flight delays and cancellations.

Terrorist attacks in the USA in September 11 then had dramatic consequences for global air travel, leading to falls in demand and revenue. The case outlines these events and their consequences for Cathay Pacific's management and describes its responses, providing an insight into some of the challenges of airline operation in a period of uncertainty and its vulnerability to internal and external pressures. Period covered 2001 – 2002