Cathay says war, virus have 'annihilated' bookings HONG KONG (Reuters) =97 Hong Kong's Cathay Pacific Airways is facing its=20 biggest crisis in 26 years as the Iraq war and a deadly flu-like virus have= =20 "annihilated" passenger bookings, its chief executive said. In a bleak=20 warning, David Turnbull told staff in a newsletter that the airline planned= =20 to cut more flights in addition to a 14% reduction in capacity announced=20 last week. "Sadly, Cathay Pacific has now entered its most dangerous time in terms of= =20 its commercial future in the 26 years I have been involved with the=20 company," Turnbull said. "We are presently planning to cut a quarter of our= =20 services from next week but I suspect that this will rise to around a=20 third," he added. The disease, called Severe Acute Respiratory Syndrome,=20 has killed more than 100 people worldwide, including 23 in Hong Kong, and=20 has infected more than 2,700. It has been spread around the world by air=20 travelers. "Tourism confidence in Hong Kong has been shattered and it will= =20 take some time to rebuild after things have settled down," Turnbull said.=20 But he added that the Iraq war could result in a more fundamental,=20 long-term recession. The combination of the war and the virus "has=20 annihiliated our passenger bookings," he said. Cathay Pacific, whose cabin staff have been given face masks and surgical=20 gloves to protect them from the virus, will reveal how badly it has been=20 hit when it releases March traffic figures next week. Tourist arrivals in=20 Hong Kong fell 10.4% year-on-year in the second half of March as travellers= =20 shunned the territory following the outbreak, the Hong Kong Tourism Board=20 said last week. Tourism accounts for about 6% of Hong Kong's economy. April= =20 figures are likely to be even worse after the World Health Organisation and= =20 several governments warned last week against travelling to Hong Kong and=20 neighbouring Guangdong in southern China. The Hong Kong Airport Authority=20 said that a total of 142 flights, or 27% of the day's scheduled flights,=20 were cancelled by carriers on Tuesday. Cathay shares fell 1.52% to HK$9.75= =20 by the midday on Tuesday in line with a 1.4% decline on the benchmark Hang= =20 Seng Index. The stock has slumped 15% in the past three weeks, hit by=20 broker downgrades as the virus takes its toll on the region's travel=20 industry. On Monday investment house JP Morgan cuts its 2003 earnings=20 forecast for Cathay by 30%. Several other carriers, such as Singapore=20 Airlines, have also reduced flights as passenger numbers dwindle. Cathay has mainly scaled back flights to destinations in Asia, but has also= =20 made cuts on its routes to London and Los Angeles. On Monday Continental Airlines, the No. 5 U.S. air carrier, became the=20 latest to cut services. It suspended nonstop flights between New York and=20 Hong Kong because of plunging demand. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.carstt.com TnT Webdirectory: http://search.co.tt *********************************************************