While worried about air cargo, Cathay Pacific's new CEO Tony Tyler remains upbeat as he orders a top priority strategy review to grow the company in the wake of the recent Dragonair acquisition.

"I am worried about the cargo downturn," he conceded. "In a good year cargo has accounted for 30 per cent of our revenue. This year it will be less than that because demand is down."

In the first half of 2007, Cathay cargo tonnage dropped 0.4 per cent year on year to 757,575 tonnes on a 3.3 per cent increase in capacity. Its portion of cargo space filled on each flight also fell 3.1 per cent year on year in the first half.

"We have a strategy to prosper and grow, but as a strategy it is general and covers a wide range of things. The priority is to clarify what goals we are trying to reach," he said in an interview with CX World.

Mr Tyler assumed the leadership position at the beginning of this month, with John Slosar, previously managing director of Swire Beverages, returning to the company as the new chief operating officer.

"We are optimistic about Hong Kong as a cargo hub and I'm very excited about the deliveries of the new cargo 747-400ERFs next year and our bid for the cargo terminal, where we have made a strong case," said Mr Tyler.

With regard to the integration of Dragonair into the fold, the CEO said Cathay needs to do more work in the areas of branding and product. By comparison, Cathay's new chief operating officer, John Slosar, believes the biggest change at the airline since he left in 1996 is the merger with Dragonair.