Job cuts, fewer flights? Hong Kong airline Cathay set for overhaul

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/>