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Home » Suppliers Gouging Airlines, Says Cathay Pacific Airways CEO

Suppliers Gouging Airlines, Says Cathay Pacific Airways CEO

September 16, 2009
Air Cargo World

Tony Tyler, the carrier's chief executive, took suppliers to task at a recent gathering at the Asian Aerospace Congress, citing the "far too rich" prices charged airlines during the global financial downturn.

"We are all in this crisis together but you wouldn't believe that from the way many of the suppliers to the airlines conduct business with us," said Tyler. "Things cost too much."

Tyler issued a plea to airframe, engine, parts, component and interiors suppliers to review escalating costs that can hammer airlines reeling from the recession.

"It's absurd to expect an industry which is estimated to be going to lose around $9bn this year to keep paying higher costs for the same thing. There has to be a closer alignment in future between the interests of airlines and suppliers," he said.

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KEYWORDS Aerospace & Defense Business Strategy Alignment Global Supply Chain Management Logistics Outsourcing Quality & Metrics SC Security & Risk Mgmt Sourcing/Procurement/SCM Technology
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