SYDNEY/SHANGHAI: Cathay Pacific Airways is expected to announce job cuts, cost reductions and to shift flights to its short-haul arm when it unveils the results of a key review this week, as it grapples with growing competition from Chinese carriers.

The 71-year-old Hong Kong airline is under pressure to combat aggressive state-supported mainland carriers, and to position itself against an “open skies” deal signed last month between China and Australia.

It scrapped its second-half profit forecast in October and announced a review of its business. The December edition of Cathay’s staff magazine, seen by Reuters, reported chief executive officer Ivan Chu would unveil the results tomorrow. Cathay declined to comment on the details of its review.

“The new management direction has to look past market share gains,” said Will Horton, an aviation analyst consultancy Capa. “That hasn’t been profitable and will become more competitive. It is well past time to get serious on costs.” — Reuters