By Mark Lee
Nov. 29 (Bloomberg) -- Cathay Pacific Airways Ltd. may face claims for compensation from Hong Kong’s airport operator for its decision to delay construction of an air-cargo terminal, Ming Pao Daily News reported, citing people it didn’t identify.
Airport Authority Hong Kong will seek to impose a new deadline for Cathay to complete the proposed terminal, the Hong Kong-based newspaper said, citing the people. Cathay had planned to invest HK$4.8 billion ($619 million) on the project, which was scheduled to be completed by the second half of 2011, Ming Pao said.
Cathay, Hong Kong’s biggest carrier, yesterday said it applied to delay construction of the air-cargo terminal by as much as two years to cut capital spending and because of waning air-freight demand. The company also offered staff unpaid leave and scaled back plans to expand passenger capacity.
Chris Lam, a spokeswoman for Airport Authority Hong Kong, and Carolyn Leung, a spokeswoman for Cathay, didn’t immediately reply to phone messages seeking comments.
To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net
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