London, 23 June 2021: I doubt ex-military pilots Roy Farrell and Sydney de Kantzow had business catchphrases such as brand exposure or user experience in mind when, in 1946, they had an idea to fly much-needed goods from Australia into post-war China. They were simply fuelled by a sense of adventure and a belief their fledging freight service was commercially viable. Using a Douglas DC-3 nicknamed Betsy, they set up operations in Hong Kong and called their new company Cathay Pacific.
What followed was one of aviation’s great success stories. Four planes were added in 1947 and passenger flights to Manila, Bangkok, Singapore and Shanghai commenced. Business boomed and by 1973 CX was carrying a million passengers a year. Since then, it has won Skytrax’s coveted World’s Best Airline award four times.
But Covid-19 has decimated the aviation industry and Hong Kong’s dear old flag carrier has suffered more than most. Its income from passenger flights plunged 84% in 2020, causing it to report a HK$21.6 billion (US$2.8 billion) loss. It only avoided collapse thanks to a HK$39 billion government-led bailout, although there were still thousands of job cuts and the closure of its regional sister Cathay Dragon.
Keen to bring in much-needed monies, CX is now planning to grow its revenue beyond flying passengers. We’ve learned this week of a bold new drive to encourage customers to spend on goods, services and products through its channels rather than only buy air tickets. Not just an airline, but a retail brand, all in the name of business diversification. It has even sent patrons a short video promising to “elevate your Cathay experience”. How very contemporary and corporate – and far removed from hauling freight between Sydney and Shanghai.
Thankfully, CX still does what it says on the tin – fly international passengers from A to B in comfort and safety – and so I’m now in London (and self-isolating in The Landmark hotel for five days) after a first taste of flying since March last year. I had expected red tape and hassle in this Covid-conscious, ultra-cautious, new normal world of air travel but, having completed all paperwork in advance (showing proof of vaccination, negative coronavirus test and location in London) the journey was smooth. Heathrow, if not quite a ghost town, was unusually quiet.
In the hours before flying, the big news broke in Hong Kong that our government is to cut mandatory quarantine for fully vaccinated arrivals from most countries, including Britain, from 14 days to seven provided they test negative for the virus and have a blood test result that is positive for antibodies. This is still seven days too many, in my opinion, given that we should be treating vaccinated citizens as immune if we want an effective pandemic exit strategy. But, let’s be kind to our risk-averse authorities and welcome this sensible, if long overdue, measure which is expected to start on 30 June. For more on this topic and other Covid-related matters, I recommend the latest podcast from Dr David Owens and Professor Ben Cowling. Well worth 20 minutes of your time.
There are still details to be ironed out and logistics to consider. For example, will I be able to have the blood test in London or must I wait until arrival back in Hong Kong on 20 July? For now, however, the prospect of just a week’s hotel isolation rather than two upon my return will make my month in the UK – and the Euro 2020 football that awaits – even more pleasant.
Our government has also commenced talks with neighbouring Macau about relaxing travel restrictions and will soon do likewise with mainland China. The Macau authorities say arrivals from Hong Kong could be exempted from quarantine arrangements if we achieve 28 consecutive days of zero local infections. This streak is currently at 15 days, with all seven new infections announced by our city yesterday being imported. Hong Kong’s cumulative total of cases is now 11,896, with 210 related fatalities. Our city’s mass vaccination programme trundles along – nowhere near quickly enough, despite HK$153 million worth of incentives from the private sector – with 17.5% of the population now fully inoculated.
The authorities have also announced a further relaxation of social distancing restrictions, in venues such as restaurants and bars and for certain events, depending on the number of guests and customers who have been vaccinated. Under certain circumstances, restaurants can seat 12 per table while up to 180 people are allowed for a banquet. Outdoor gatherings are still capped at four individuals, however. Chief Executive Carrie Lam has dismissed the notion she is trying to curb protests, saying it is easier to implement social distancing rules in a confined space. Indeed.
In closing, I should point out I’m not the only Hong Kong resident bitten by wanderlust. A young wild boar strayed into an MTR station last Friday, boarded two separate trains and gave staff the runaround on a journey from Hong Kong Island to the New Territories. Photos and videos on social media showed the piglet running loose through carriages and even taking a breather in a priority seat. Animal welfare officers eventually cornered the animal and set it free in a nearby country park. As for this intrepid traveller, I will be released back into my natural habitat on Sunday.
Stay safe and well, everybody!
Colin Cohen
Senior Partner
Boase Cohen & Collins
