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HACTL PLANS STAFF CUTS

HACTL PLANS STAFF CUTS

   Hong Kong Air Cargo Terminals Ltd., which operates the massive Super
Terminal 1 cargo handling facility at Chep Lap Kok International Airport,
plans to fire 4.6 percent of its staff this year to cut costs.
   HACTL expects to lose more than $19 million this year, due to rising
operating costs related to its disastrous move from Kai Tak airport to Chep
Lap Kok last year.
   The staff cuts come even as some industry officials expect air freight
traffic to rise significantly out of Hong Kong during the coming peak air
shipping season.
   HACTL said it will need to make deeper labor cuts in coming years to
become profitable. HACTL has had to adjust to operating against competition at the new
airport and to servicing a huge debt related to the construction of Super Terminal 1.