Cathay Pacific said Wednesday it would cut capacity for the upcoming winter season after reporting an 11.3% fall in passenger numbers for August as anti-government protests in Hong Kong hit demand. The airline said inbound traffic to Hong Kong in August had fallen by 38% and outbound traffic by 12% compared with the previous year, and it did not anticipate September would be any less difficult. Hong Kong’s finance secretary reported earlier this week that visitor arrivals plunged nearly 40% in August, deepening from July’s 5% fall, as sometimes violent anti-government protests took a rising toll on the city’s tourism, retail and hotel businesses. The weak demand and cuts to capacity will place more pressure on Cathay at a time when it is grappling with management upheaval and is trying to complete a three-year financial turnaround plan driven by boosting revenue and slashing costs. “Given the current significant decline in forward bookings for the remainder of the year, we will make some short-term tactical measures such as capacity realignments,” Cathay Chief Customer and Commercial Officer Ronald Lam said. “Specifically, we are reducing our capacity growth such that it will be slightly down year-on-year for the 2019 winter season (from end October 2019 to end March 2020) versus our original growth plan of more than 6% for the period.” Cathay has become the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations that have plunged the former British colony into a political crisis. Cathay said Wednesday demand for premium class travel had fallen more significantly than for leisure travel, with demand from mainland China and Northeast Asia severely hit, although Australia and New Zealand were more positive.<br/>
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A bail hearing has been delayed for a mechanic charged with sabotaging an American Airlines jetliner as part of a labour dispute. Defense attorney Anthony Natale said at a hearing Wednesday he needed more time to prepare a bail argument for 60-year-old Abdul-Majeed Marouf Ahmed Alani. Prosecutors are seeking pretrial detention. Another hearing is set for Sept. 18. Alani was arrested last week on a criminal complaint charging that in July he disabled an airliner with 150 people aboard at Miami International Airport because he was upset that ongoing labor negotiations were jeopardizing his chances at earning overtime. The aircraft did not take off and no one was injured. <br/>
LATAM Airlines Group’s CE Enrique Cueto will step down from his position on 31 March after spending 25 years at the airline. Roberto Alvo, currently chief commercial officer for the Santiago-based airline, will assume the top role after Cueto’s departure. Alvo has 18 years of experience with LATAM, holding positions in finance, fleets and commercial operations. Cueto was responsible for several milestones in LATAM’s history, the most notable of which was leading the airline group after Chile-based LAN merged with Brazil’s TAM in 2012. He also guided the carrier to post its first post-merger annual profit in 2016, amidst Brazil’s recession and challenging macroeconomic conditions in the region. “We’ve made this announcement at a time of solidity and stability for the company,” LATAM Airlines president Ignacio Cueto (and brother of Enrique) said. Last year, the group said it would begin the search for Cueto's replacement.<br/>
Finland flag carrier Finnair and Chile’s LATAM Airlines Group have signed a codeshare agreement, which becomes effective Oct. 1. The partnership will provide Helsinki-based Finnair with connectivity between the Finnish capital hub and LATAM’s hubs in São Paulo Guarulhos (Brazil) and Santiago (Chile), via five European gateways.<br/>