Question

In: Economics

3、Many foreign airlines do not fly to Hong Kong because of its high landing fees. What...

3、Many foreign airlines do not fly to Hong Kong because of its high landing fees. What is the impact of the high landing fees on Cathay Pacific employees? Do Cathay Pacific employees favor the high landing fees? Explain.

Solutions

Expert Solution

Yes,many foreign airlines do not fly to Hong Kong because of its high landing fees.Cathay Pacific provides various services to travellers and passengers who travel in flights which land in Hong Kong.It also provides services to traders who carry out trading activities through airways.Cathay Pacific charges high landing fees for offering various services to people who travel in Hong Kong flights.As Cathay Pacific is charging high rates,most of the people are not willing to land in Hong Kong and are choosing the flights which do not fly to Hong Kong. Due to this,a negative impact has been formed on Cathay Pacific employees.Since,people and traders are not choosing Hong Kong flights,the income of Cathay Pacific has decreased.It is facing huge losses,as demand for its services declined.Due to low demand and minimum turnover,work and responsibilities of Cathay Pacific employees also decreased.Most of the employees might lose their job if landing fees are not reduced as Cathay Pacific will not be able to pay their employees.Therefore,there is worst impact on employees of Cathay Pacific as landing fees are high.No,Cathay Pacific employees do not favor high landing fees.They want to reduce the landing fees inorder to attract passengers,this increases turnover and revenue of Cathay Pacific.Employees have the risk of losing their jobs due to high landing fees.So,employees are not in favor of charging high landing fees and they want the landing fees to be reduced.

Hence,high landing fees created a negative impact on employees of Cathay Pacific.Even employees are not in the favor of high landing fees.


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