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Cathay Pacific Airways is expected to announce job cuts, cost reductions and to shift flights to its short-haul arm when it unveils the results of a key review this week, as it grapples with growing competition from Chinese carriers. The airline is under pressure to combat aggressive state-supported mainland carriers, and to position itself against an "open skies" deal signed last month between China and Australia. Cathay scrapped its second-half profit forecast in October and announced a review of its business. The December edition of Cathay's staff magazine, seen by Reuters, reported CE Ivan Chu would unveil the results Jan 18. "The new management direction has to look past market share gains," said an analyst for CAPA. "That hasn't been profitable and will become more competitive. It is well past time to get serious on costs." <br/>

American Airlines' evolving uniform crisis intensified yet again this week as APFA national president Bob Ross responded in blistering fashion to Twin Hill MD Daryl Stilley's incendiary letter sent last week. Stilley accused APFA of making inaccurate and damaging public statements about Twin Hill, which supplied new uniforms to more than 70,000 AA employees. Some 2,300 AA flight attendants to date have reported symptomatic reactions to the uniforms ranging from hives and rashes to headaches and swollen faces and severe respiratory problems. Ross accused Twin Hill of trying to "point the finger at APFA by distorting the facts." Ross then went on to say it is American Airlines' responsibility to fix the problem that the new uniforms have become for APFA members. <br/>