Cathay cuts rates

Stiff competition at the start of this year forced Cathay Pacific to reduce its air-freight rates to Europe and North America by more than 10 per cent, a company executive says.

James Barrington, general manager of cargo, said rates to Japan also had been reduced by 5 per cent.

Air-cargo throughput in the first four months had been slow, although there was a mini-peak in March, he said. Business from countries affected by the Asian currency crisis had been hit hardest.

Mr Barrington said shippers had been reluctant to sign contracts due to the turmoil in Asia.

However, Cathay would maintain its schedule integrity despite the regional slowdown.

Business was returning to normal and he expected to see demand pick up in the second half.