Cathay Pacific and COVID 19 Pandemic

Academic/Industry Reference

Yeung, J. H. Y., Cheung, W., Fung, M. K. Y., Zhao, X., & Zhang, M. (2010). The air cargo and express industry in Hong Kong: economic contribution and competitiveness. International Journal of Shipping and Transport Logistics, 2(3), 321-345.

The above article is one of the academic references used in the project. In this article, the researcher examine the economic contribution and competitiveness of the air freight and express industry in Hong Kong. The study was conducted with the support of key industry players and other stakeholders including UPS, FedEx, TNT, and DHL. To achieve the purpose of the study, the researchers carried out a review of existing data and studies relating to logistics in Hong Kong and China. They also conducted a research into Hong Kong’s air freight and express industry. The review of existing studies served as the foundation for secondary data analysis. However, the researchers carried out face-to-face interviews and used a questionnaire to examine the sources of competitiveness in Hong Kong’s air freight and express industry. The research was geared toward providing insights on how to enhance the competitive position of this industry in Hong Kong. For secondary data analysis, the researchers utilized three approaches i.e. input-output tables, the econometric model, and a combination of the approaches. When conducting the research and analysis, these researchers relied on industry data and existing studies.

The study found that Hong Kong’s air freight and express industry makes significant contributions to the country’s economic development and labor market. However, the competitiveness of this industry is declining because of the rapid development of airports in the region. The findings of this study are useful for the aviation project as they help provide insights regarding opportunities and threats facing Hong Kong. It provides significant insights that enhance understanding regarding Hong Kong’s aviation industry. Insights obtained from the article are also critical towards understanding the opportunities and threats facing Cathay Pacific and its position in the region. Therefore, the article provides a foundation for understanding the nature of Hong Kong’s aviation industry.

Main Threads of the Aviation Project

The overall aim of the project is to conduct a full assessment of the effect of the pandemic on Hong Kong’s Cathay Pacific Airline Limited to understand and establish its post-pandemic future. In addition, it seeks to establish the future of the airline in relation to Chinese take-over of Hong Kong and the effects of the pandemic. The other objective of the project is to examine the role of Hong Kong as a hub in aviation and how that is expected to change as a result of the mentioned variables.

The achievement of these overall aims and objectives of the study involved addressing some research questions as follows:

1. What will the future of Cathay Pacific look like after the Covid-19 pandemic?

2. What impact will China taking control of Hong Kong have on Cathay Pacific Airline’s future?

3. Will Hong Kong strengthen and maintain its role as an aviation hub in the region after the impact of the pandemic and China taking control?

Airlines like Cathay Pacific recorded the worse performance in history due to the travel restrictions brought by the pandemic. The removal of some travel restrictions provides an avenue for airlines to resume operations and become profitable as they grapple with the long-term economic effects of the pandemic. However, Hong Kong’s role as an aviation hub is affected by various factors like competition from other aviation hubs. There is a gap in literature on the impact of disease outbreaks on Hong Kong’s role as an aviation hub. The study is expected to demonstrate that Cathay Pacific still has a future but will struggle in the short-term due to the impact of the pandemic. Additionally, Hong Kong will continue to remain competitive as an aviation hub because of the city’s economic development.