SF Gate: SARS hammers Asian tourism; Cathy Pacific executive warns airline may have to ground fleet

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Sunday, April 13, 2003 (AP)
SARS hammers Asian tourism; Cathy Pacific executive warns airline may have =
to ground fleet
HELEN LUK, Associated Press Writer


   (04-13) 04:10 PDT HONG KONG (AP) --
   An executive with Hong Kong's Cathay Pacific Airways warned in a memo th=
at
the airline may have to ground its fleet if traffic keeps falling because
of fears of severe acute respiratory syndrome.
   A spokeswoman insisted Sunday there were no plans to cease operations, b=
ut
the memo -- quoted by Hong Kong's South China Morning Post -- underscored
the financial damage the virus has wrought on the region.
   As the virus killed five more victims in Hong Kong, airport officials sa=
id
their business is "under threat" following a plunge in traffic. Even in
SARS-free Cambodia, tourism was taking a big hit as travelers shun the
region.
   The disease has infected about 3,000 people globally and killed at least
130, mostly in Asia.
   In China, health officials who have been criticized for their initial
handling of the disease took reporters on a tour of Beijing hospitals
Sunday to show they are ready for further outbreaks.
   The World Health Organization said in a statement Saturday that it has
added Beijing to its list of SARS-affected areas. Other affected areas
include Hong Kong, Guangdong and Shanxi provinces in China; Taiwan;
Toronto in Canada; Singapore; and Hanoi in Vietnam.
   Hong Kong's Airport Authority said Sunday that traffic at Chek Lap Kok
airport had plunged from last year's level, with 30 percent of flights
canceled after the WHO warned against travel to Hong Kong and Guangdong
province.
   The WHO travel warning was issued on April 2, and the number of passenge=
rs
at Chek Lap Kok has been declining almost daily, from about 54,300 on
April 1 to 31,700 on Thursday. This compares with a daily average of
98,600 for the same period last year.
   Cathay Pacific's traffic has plunged from about 30,000 passengers a day =
to
below 10,000 since the SARS outbreak, causing the airline millions of
dollars in losses each day, newspapers reported.
   The South China Morning Post quoted director of flight operations Nick
Rhodes as writing in a memo: "We forecast the number of passengers could
fall to less than 6,000 per day in May, in which case we will have to
consider grounding the entire passenger fleet."
   "We are literally hemorrhaging cash -- approximately $3 million per day,"
Rhodes was quoted as saying.
   A Cathay spokeswoman, Rosita Ng, called the reference to grounding the
fleet Rhodes' "interpretation" of Chief Executive David Turnbull's
comments at a briefing. She said Cathay has "no plans to stop operations
at any future date," but declined to discuss the memo further.
   Cathay said in an earlier statement it had temporarily cut 42 percent of
its flights. "More measures will be implemented as and when necessary," it
said.
   As of last year, the airline had 75 aircraft with six more on order.
   Asian health authorities were trying to calm fears about the outbreak at
the same time they were imposing stricter measures to guard against its
spread.
   Hong Kong health officials have released a list of 169 buildings where
recent SARS victims have either lived or worked.
   Singapore authorities ordered a person to wear an electronic tracking tag
after the patient flouted a home quarantine order.
   Officials allowed a luxury cruise liner, the SuperStar Virgo, to return =
to
Singapore on Sunday after being disinfected. Thirteen crew members were
quarantined after coming into contact with one or two SARS victims.
   In the Cambodian tourism town of Siem Reap, home to the Angkor temples,
tourism has tumbled and hopes of attracting 1 million visitors this year
are fading. Siem Reap saw arrivals reach 800,000 last year.
   "We have closed some rooms and switched off air conditioners to save
energy," said manager Marc Begassat of the luxury Sofitel Royal Angkor
Hotel, which is only 10 percent to 15 percent occupied. "For this moment
there is nothing much you can do."

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Copyright 2003 AP

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