Cathay Pacific CEO: Suppliers Should Lower Prices In Downturn
September 08 2009 - 7:23AM
Dow Jones News
Cathay Pacific Airways Ltd. (0293.HK) Chief Executive Tony Tyler
on Tuesday called on the airline's suppliers to lower prices of
essential parts and components as the airline industry struggles in
one of its worst ever downturns.
Tyler criticized the airline's main suppliers of airframes,
engines, parts and interiors for keeping prices high and "making
good profits even in these dark recessionary days."
"I am always astonished when I hear how much what you sell us
costs," Tyler said in a speech at the Asian Aerospace forum,
attended by aviation industry executives.
"Big things, small things, seats, engines, parts of all kinds -
how can they be so expensive?"
For example, he said the cost for a premium class seat and its
furniture costs more than a top-quality sports car.
He said it was time the supply market "lifted its game," and
involve more risk sharing and alignment of interests between the
buyers and sellers.
Cathay Pacific has ordered aircraft from both Boeing Co. (BA)
and Airbus. The majority of its planes use engines made by
Rolls-Royce Group PLC (RR.LN), though some of its newest long-haul
aircraft use General Electric Co. (GE) engines.
-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002;
jeffrey.ng@dowjones.com