Hactl braces for life after Cathay in 2013, major downsizing anticipated

THE airport's No 1 ground handler, Hong Kong Air Cargo Terminals Ltd (Hactl) has revealed it is to suffer a major blow in 2013 when its biggest customer, Cathay Pacific Airways, moves away into its own new freight terminal.

"We have to gear the company up to be at the right size for the less volume," said Hactl managing director Mark Whitehead. "That's a priority. There's no point in carrying a higher cost base than you need."

Mr Whitehead said that when Cathay moves its operation into its new terminal early next year, the dynamic at Hong Kong International Airport will completely change.

"It's something that we've anticipated and known about for a very long time," Mr Whitehead told Atlanta-area Air Cargo World at the TIACA annual conference.

"You cannot replace Cathay with a new customer; it's too big of a player. My priority is to make sure that we maintain existing customers," he said.

Mr Whitehead said Hactl should end the year with just more than 2.7 million tonnes, which is partly a reflection of increased Asian transshipment activity. Tonnage to Europe is down, but activity to the US, which has been a bit sluggish, will end 2012 with about the same numbers as 2011, he said.