Chief executive Tony Tyler (below) said yesterday he might have to install more economy seats on Cathay's planes at the expense of premium-class space if demand did not return. Two weeks ago, the airline set up a feasibility study to see if the current downturn was more cyclical than structural.

Despite the financial crisis and swine flu, Cathay's average passenger load in the first six months was down only 1.5 per cent at a still respectable 78.5 per cent.

By installing more economy-class seats Cathay hopes to extract more revenue from the front of its cabins.

Mr Tyler is less of a cost-cutter than a revenue driver. A look at the operating statistics in the past two years shows that the unit cost per mileage has gone up in every half-yearly report since he took over.

By comparison, his predecessor Philip Chen Nan-lok managed to keep cost per mileage down in his two-year reign between 2005 and 2007.

We can expect Cathay to provide more economy-class seats but probably not more cheap tickets.

Avic lifts veil of secrecy

When state-owned Aviation Industry Corp of China (Avic) announced in February that it was launching a global search for foreign executives to help it modernise, the move was hailed as being unprecedented.

Avic, the country's main manufacturer of military jets, said it was the first time such an enterprise had 'lifted its veil of secrecy'.

It was all part the attempt to muscle in on the civil aviation sector - Avic is trying to develop aircraft, including a 150-seat jetliner, to compete with Boeing and Airbus.

The aim was to hire 13 vice-presidents to help improve production, marketing and management in divisions, including defence, a job it said might also be open to a non-Chinese citizen.

The company received almost 1,000 applications from 20 countries with 10 foreign nationals being shortlisted for the final round of interviews.

No surprise, then, when Avic announced yesterday it had hired six executives - all of them Chinese, including a former deputy mayor.

Charity begins at bank

You can't even give your money away these days without a bank wanting in on the action.

Standard Chartered's Private Bank has launched what it says is a 'unique philanthropy programme' offering advice to high net worth individuals 'to ensure that the impact of their philanthropy is monitored and measured'.

These programmes include sponsoring the bank's own 'Seeing is Believing' charity with a dollar-matching donation up to US$20 million, advising on giving to charity and providing an opportunity for individuals who want to give more than money.

We know it is all for good causes, but coming during a recession, we cannot help thinking that it smacks of a sort of ambulance chasing.

Yam bullish on the money

Hong Kong officials are notorious for getting the wrong side of the market.

Imagine how much the short sellers made after Chief Executive Donald Tsang Yam-kuen said our economy was in the best shape in two decades in early 2007, or the opportunities for going long after listening to Hong Kong Exchanges and Clearing chief Ronald Arculli say the market had peaked in May.

Now it could be the turn of Joseph Yam Chi-kwong. The outgoing Hong Kong Monetary Authority chief yesterday said that the strong inflow of funds in recent months, which have pushed the Hong Kong dollar to the top of its trading band, were not related to currency speculation.

Mr Yam (below) said information from his market contacts led him to believe the inflows were largely 'real money' from investors 'attracted by the opportunities here and looking to position themselves to benefit from the strong outlook for the mainland and Hong Kong economies'.

This bullish appraisal from Mr Yam was a surprise to his followers who could readily recall his bearish warning of a 'second wave of financial attack' a few months ago.

We could not help wondering whether the 'real money', which can come and go, will really be here to stay.