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Old August 4th, 2005, 02:12 AM   #441
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03 August 2005
Corporate Press Release
Cathay Pacific to add second daily non-stop service to Jakarta

Cathay Pacific Airways today announced it will add a second daily non-stop service to Jakarta from the start of the winter season, offering passengers the choice of making a morning or afternoon departure and quicker access to connections through the Hong Kong hub.

The new service operated by a two-class Airbus 330-300 will start 1 November. It will depart Hong Kong at 16.15 and return from Jakarta at 09.20 the following morning, complementing the existing daily non-stop Airbus 340-300 service that departs Hong Kong at 09.30 and returns from Jakarta at 14.50. It will also replace the current daily one-stop service to Jakarta via Singapore. Singapore services will not be affected by the change.

Cathay Pacific this month added a third daily service to Los Angeles and will soon operate a fourth daily flight to London as part of its ongoing programme to strengthen Hong Kong as a global hub and gateway to the Chinese Mainland. The airline has so far this year launched services to Xiamen and freighter services to Shanghai and added more flights to Amsterdam, Beijing, Denpasar, Frankfurt, Ho Chi Minh City, Johannesburg, Nagoya and Perth. Later this year the airline will inaugurate new freighter services to Atlanta and Dallas.

Cathay Pacific Director Corporate Development Augustus Tang said: “The second non-stop Jakarta service will offer faster, more convenient flight times and attract more passengers wishing to make connections in Hong Kong. It will strengthen our regional network and the Hong Kong hub.”
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Old August 11th, 2005, 12:34 AM   #442
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10 August 2005
Corporate Pess Release
Cathay Pacific Records HK$1,670 Million Profit In 2005 Interim Results

Cathay Pacific Airways recorded an attributable profit of HK$1,670 million during the first six months of the year compared to a HK$1,771 million first-half profit last year.

Fuel costs represented 27.9% of the airline’s total net operating cost in the first half of 2005, up from 21.8% in the same period a year ago, as the average price of fuel into plane increased from US$46 to US$65 per barrel. Passenger and cargo fuel surcharges only partially offset this additional cost.

Turnover increased by HK$4,225 million to HK$23,884 million as the airline carried 7.3 million passengers and 517,920 tonnes of cargo, up from 6.4 million passenger and 469,909 tonnes of cargo carried in the first half of 2004. Passengers carried increased by 14.5% over the period, ahead of a corresponding 12.2% increase in passenger capacity. Passenger yield was HK¢47.2, compared to HK¢45.7 last year.

Cargo demand out of Hong Kong remained strong. The cargo load factor was 65.9% and cargo yield was HK$1.75 up from HK$1.72 last year.

The airline expanded its fleet and extended services during the period, taking delivery of a Boeing 747-400 freighter, one B777-300 and two Airbus 330-300 passenger aircraft. A further A330-300 was delivered in July.

Work started in April on our first B747-400 passenger-to-freighter conversion. This aircraft will enter service with the airline in December. Orders are in place for the conversion of six more by 2007. Three refitted second hand B747-400 passenger aircraft will enter service with the airline by the end of this year.

New and additional passenger services were added to Amsterdam, Beijing, Denpasar, Frankfurt, Ho Chi Minh City, Johannesburg, Los Angeles, Nagoya, Perth, Xiamen along with 12 weekly freighter services to Shanghai. Later this year the airline will inaugurate new freighter services to Atlanta and Dallas and a fourth daily passenger service to London.

Cathay Pacific further cemented its strategic partnership with Air China by signing accords to codeshare on flights to and from Beijing and to participate in our frequent flyer programmes.

Cathay Pacific Chairman David Turnbull said: "While forward bookings are encouraging the high price of fuel, which could yet dampen world growth, may well make it difficult for us to achieve a similar result in the second half. This year we have already won a number of major international service awards, including the Airline of the Year 2005. Delivering superior service and value for money remains our focus as we continue to expand our network and strengthen Hong Kong as a global aviation hub."
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Old August 12th, 2005, 02:03 AM   #443
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11 August 2005
Corporate Press Release
Cathay Pacific releases July 2005 traffic figures

Cathay Pacific Airways today released traffic figures for July 2005 that showed continued strong passenger and cargo demand as the airline entered the height of the summer season.

In July, the airline carried 1,442,783 passengers, a 13.7 percent increase year-on-year, as the holiday season got into full swing, and 96,228 tonnes of cargo, up 19.1percent from a year ago. Both passenger and cargo loads grew faster than corresponding increases in capacity. The cargo business was unusually brisk during what is typically a slower time of year.

The average passenger load factor in July was a high 84.0 percent with strong support from both business and leisure travellers. The airline carried in excess of 50,000 passengers on five separate days during the month. More cargo shipments from Shanghai routed through Hong Kong, showing the city’s importance as a gateway to the Chinese Mainland for cargo and passengers.

Cathay Pacific General Manager Revenue Management, Sales & Distribution Ian Shiu said: "We would normally expect business traffic to ease during the July holiday season but the front end was as full as Economy, where there was high demand from leisure travellers. Yet high fuel prices continued to take the shine off strong revenue."

Cathay Pacific Director & General Manager Cargo Ron Mathison said: "July was another good month with healthy growth in exports from the Mainland to the United States and Europe. Transhipments from Shanghai were particularly strong helping to boost overall tonnage growth."
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Old August 12th, 2005, 03:00 AM   #444
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Cathay Pacific First-Half Profit Down
August 10, 2005

Hong Kong's dominant carrier, Cathay Pacific Airways, said on Wednesday its first-half earnings fell 5.7 percent due to high fuel prices and warned energy costs could hurt second half results even more.

"While forward bookings are encouraging, the high price of fuel -- which could yet dampen world growth -- may well make it difficult for us to achieve a similar result in the second half," Cathay Chairman David Turnbull said in a statement.

Cathay Pacific, the world's sixth biggest airline by market value, posted net profit of HKD$1.67 billion (USD$215 million) for the six months ended in June as against a profit of HKD$1.77 billion (USD$227.8 million) in the same period last year.

"We've seen a record passenger number, cargo volume and revenue," Turnbull said. "But we also paid record fuel bills."

Cathay's net fuel cost across the group rose 53 percent from a year earlier to HKD$5.26 billion (USD$677 million), representing 28 percent of the carrier's total net operating costs in the first half, compared with 22 percent previously.

The average price it paid for jet fuel rose to USD$65 per barrel during the first half, from USD$46 a year earlier. Fuel surcharges covered only half of the increase, Cathay said.

Turnover rose 21.5 percent to HKD$23.88 billion (USD$3.07 billion) in the first six months, with passenger revenue up nearly 19 percent.

Singapore Airlines last month reported a 7.9 percent drop in second-quarter profit and warned that persistently high fuel prices could hit its earnings even more.

Cathay hedged about 15 percent of its fuel cost in the first half. "We try to hedge a third of our fuel cost. It's not a gamble but just purely to give some sort of security," Turnbull said.

The carrier's fleet currently stands at 95 planes, up from 59 at the end of 1997.

Despite high fuel costs, demand remains good thanks to strong economic growth in Asia, analysts said.

Passenger traffic rose 15 percent and passenger load factor gained 2 percentage points to 78 percent. Its cargo traffic rose 8.6 percent, although its cargo load factor eased 2.8 percentage points to 65.9 percent.

The opening of a Disney theme park in Hong Kong next month and strong business travel in the region should spur its traffic growth, analysts said.

(Reuters)
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Old August 13th, 2005, 07:48 PM   #445
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Old August 15th, 2005, 02:28 AM   #446
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Cathay cuts meals on London run
Patsy Moy
15 August 2005
South China Morning Post

Cathay Pacific is issuing half rations to passengers flying between London and Hong Kong because of industrial problems at British Airways' caterers.

Gate Gourmet, at the centre of an industrial dispute that led to the grounding of British Airways flights last week, also provides meals for Cathay in London.

A Cathay spokeswoman said the industrial action had forced the airline to start carrying meals from Hong Kong to serve passengers on both London-bound and Hong Kong-bound flights.

In-flight meals had been cut down from two to one as the planes were unable to carry enough food.

Passengers in economy class are being issued food coupons to eat at airport restaurants before their flights. Business and first-class passengers are given meals in the airline's VIP airport lounge.

Passengers would be served at least one partial meal during the 11-hour flight and light refreshments before landing, the spokeswoman said.

She said passengers had been told about the arrangement by phone or at the check-in counter.

Only flights between Hong Kong and London - there are three each way per day - are affected.

"We apologise for the inconvenience. The arrangement is just temporary and we will try to resume normal catering services as soon as possible. We hope our passengers will be understanding," the spokeswoman said.

She said no complaints had been received from passengers so far.

Megan Inglis, who flew to London with her twin four-year-old daughters at midnight last night, said she was told that no snacks were provided on-board between dinner and breakfast.

Mrs Inglis said she was warned of the arrangement at 1pm yesterday so had time to pack snacks for her children.
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Old August 16th, 2005, 05:20 PM   #447
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Cathay defies fuel costs as business user volumes grow
By FLORIAN GIMBEL
11 August 2005
Financial Times

Cathay Pacific, Hong Kong's de facto carrier, defied a sharp increase in the cost of jet fuel in the first half of this year by attracting more business travellers, despite higher surcharges on tickets.

The company yesterday reported a 5.7 per cent drop in net profits attributable to shareholders to HKDollars 1.67bn (USDollars 214m) from HKDollars 1.77bn in the six months to the end of June.

Fuel surcharges accounted for HKDollars 1.4bn, or 84 per cent, of net profits.

Peter Hilton, head of transport research at Credit Suisse First Boston, said it was "surprising" that demand had held up.

"If someone had said a few years ago that Cathay would be in the black at (jet fuel prices of) Dollars 76, people would have laughed," he added.

The company said it had made more than Dollars 20m of profits by hedging 15 per cent of its fuel costs in the first half.

It has increased its hedging level for the second half from 4 per cent to 10 per cent.

"This is a defensive hedge, so we don't expect any contribution to the bottom line," said Robert Atkinson, finance director.

David Turnbull, chairman, said the company was trying to hedge up to a third of its fuel costs. "It gives us some security if things go wrong," he said, pointing to a "difficult second half. If jet fuel prices get up to Dollars 100, we would have to charge a lot more."

Fuel surcharges covered less than half of the increase in fuel costs.

Operating cost jumped by 25 per cent to HKDollars 21.8bn, with fuel accounting for less than a third of the total.

The company's average price of fuel rose to Dollars 65 a barrel, up from Dollars 46 last time.

Cathay's passenger yield, or average revenue from each passenger for every kilometre flown, rose 3.3 per cent to 47.2 HK cents, helped by strong demand from business travellers on services to Europe and North America. Analysts said business travel was dependent on further growth in China's export industry.

Pre-tax profits remained flat at HKDollars 2.09bn from HKDollars 2.07bn last time, while sales jumped by 21.5 per cent to HKDollars 23.9bn. Passenger traffic, or the number of travellers multiplied by the distance flown, increased by 15 per cent.

The airline declared an unchanged interim dividend of HK20 cents. The shares, which have underperformed the benchmark Hang Seng index by 7.8 per cent since the beginning of this year, closed 1 per cent higher at HKDollars 14.50.
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Old August 17th, 2005, 03:31 PM   #448
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Schizophrenic Hong Kong man who tried to open aircraft door inflight found guilty
16 August 2005

HONG KONG (AP) - A Hong Kong man who tried to open a cabin door during a Tokyo-Hong Kong flight was found guilty of attempting an act likely to endanger an aircraft, a newspaper reported Wednesday.

Anthony Yeung Ngor-wah, 37, pleaded innocent and told a court he intended to open the door on the Cathay Pacific Boeing 777 to escape persecution from torturers, the South China Morning Post reported.

Yeung, who psychiatrists said was "under psychotic influence" during the flight, was subdued and dragged away from the door after he grabbed its handle and tried to rotate it upwards to open it, the paper said. He was then handcuffed and placed under arrest when the plane landed.

The judge ruled Tuesday that Yeung "knew the nature of his act," and he was to be sentenced later Wednesday, the paper said.
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Old August 21st, 2005, 04:52 PM   #449
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By jzs from HKADB :



















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Old August 21st, 2005, 06:25 PM   #450
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Old August 24th, 2005, 04:51 PM   #451
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24 August 2005
Corporate Press Release
Cathay Pacific to sponsor media group to Hong Kong for the Hong Kong Disneyland opening

Cathay Pacific Airways today announced that it will fly two jumbo loads of journalists to experience Hong Kong’s attractions and the opening ceremony of Hong Kong Disneyland.

Some 600 reporters will converge on Hong Kong from 19 Cathay Pacific destinations in just two days. It will be the largest number of media group the airline sponsors to the city for a single event at any one time.

Large groups will arrive from cities including Beijing, Manila, Tokyo, Sydney and Bangkok. Around a hundred journalists keen to see Hong Kong’s newest holiday draw will travel from the United States, Disney’s home, including those from New York and Los Angeles.

Cathay Pacific will fly in the overseas media to attend the theme park’s opening ceremony. The airline is already title sponsor for a number of other major Hong Kong events, including the International Chinese New Year Parade, International Races and Rugby Sevens.

It also helps stage other major sporting and cultural events, including Broadway musical productions such as Miss Saigon, MAMMA MIA! and most recently Saturday Night Fever.

Meanwhile, to help bringing in more tourists and conferences to Hong Kong, the airline has created special Disney tour packages available to overseas visitors to attract them to the city. Deals include return airfares, hotel accommodation and park entrance.

Cathay Pacific General Manager Marketing Charlie-Stewart Cox said: “We call it the ‘D-Day’ landings because we have never brought this many journalists to the city for a single event. Disneyland will add to Hong Kong stature as a world-class tourist destination. As Hong Kong’s airline Cathay Pacific will work hard to bring more visitors here. Six hundred journalists flying in for the park’s opening is a good start.”
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Old August 26th, 2005, 06:24 AM   #452
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Cathay crew lose 'bunk rest' fight
Albert Wong
26 August 2005
Hong Kong Standard

Cathay Pacific's cabin crew Thursday lost their attempt to reverse the airline's decision to reduce their in-flight "bunk rest" time on ultra-long haul flights.

The case, before High Court Justice Michael Hartmann, was a request for a judicial review of the Director General of Civil Aviation's ratification of Cathay's 2004 decision to cut the long- haul in-flight rest time.

At the hearing in July, the Cathay Pacific Airways Flight Attendants Union argued that by allowing significant changes to be made to the length of their rest period, the director general had contravened or ignored his own statutory policies.

It argued that under the director's 1999 directive, cabin crew were to be allowed eight hours' in-flight rest on a 16-hour flight.

But under the new scheme, approved by the director, attendants would get only three hours.

Although recognizing that "while aviation technology advances, human physiology does not," Hartmann ruled that the director's 1999 decision was only a policy guideline rather than legislation.

The document, he said, may contain administrative rules, but "they are not rules of law." Furthermore, he noted, Cathay's new "bunk rest" scheme was not a significant departure from the director's rules because it had, in fact, been already altered, albeit informally as "post meeting notes," which escaped the union's recognition.

Hong Kong's Air Navigation Order also states the director can implement policies regarding in-flight rest "as he thinks fit," Hartmann emphasized.

"He devised the policy. It's his policy. If in good faith, for the purposes of good governance, he is of the view that it must be changed, then he may change it," Hartmann said.

The bunk rest rules came into effect on January 1.

At the July hearing, union counsel, John Scott, said the reductions were "particularly acute." They came at a time when Cathay had recently introduced 17-hour non-stop flights to New York and was about to introduce three daily non-stop flights to Los Angeles. Cathay also plans to fly more frequently to San Francisco, Scott added.

When the bunk rest rules were first published in March 1999, they caused confusion and misunderstanding. A March 24, 1999 letter from the director general purporting to clarify the meaning only served further confusion.

"It seems to me, the director general, in the letter of 24 March, 1999, attempted to squeeze a meaning into the language, which the document, as it was published, did not hold.

"The English language is sufficiently complex that, when its weight and balance is shifted, it is capable of throwing up a range of meanings," Hartmann said.

Hartmann noted that the 1999 in- flight rest scheme, as the union claimed, "allows materially more generous periods of in-flight rest on ultra long haul flights than the approved Cathay Pacific scheme."

Hartmann commented that while one may criticize the director general for the informal manner in which he altered the policy, since it is policy and not legislation, no "specified procedural steps" were required. Consequently, he ruled that the approval of Cathay's scheme "accorded with changed terms" in April 2001 and dismissed the judicial review request.

The union said it would study the judgment and decide whether to appeal.
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Old August 29th, 2005, 09:14 PM   #453
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29 August 2005
Corporate Press Release
Cathay Pacific offers new in-flight Disney entertainment

Cathay Pacific today announced that Mickey Mouse and Friends will keep kids entertained on flights with the introduction of a new Disney Channel on its StudioCX inflight entertainment system and special fun packs with games, stickers and puzzles.

The new Disney Channel will air on flights from September and feature well-loved characters such as Mickey and Friends, Kim Possible, Lilo & Stitch, Aladdin, Hercules and Timone and Pumbaa.

Eight shows will be offered on short-haul flights every month. Passengers flying long haul can in addition enjoy all-time favourite feature-length movies. September’s line-up includes Atlantis:The Lost Empire, Toy Story 2, The Jungle Book 2 and The Great Mouse Detective.

The new Disney fun packs will be phased in from September and be available free on all Cathay Pacific flights to children aged between three and 12. They come in four different designs – two for children aged between three and six years and two for older kids aged between seven and 12.

Mickey, Minnie, Donald Duck, Daisy, Pluto and Goofy appear on fun stationery, colouring books, stickers, puzzles, activity books and card games. Cathay Pacific will switch packs between inbound and outbound services to give children greater variety.

Cathay Pacific Manager Product Sarah Blomfield said: “Cathay Pacific is just as committed to provide the best product and service to our young passengers. We hope our new Disney Channel and fun packs make them and their families feel extra welcome on board.”
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Old August 30th, 2005, 07:24 AM   #454
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Cathay seeks cheap loans for freighters
30 August 2005
Hong Kong Standard

Cathay Pacific Airways, Hong Kong's de facto flag carrier, is seeking a 10-year loan of US$260 million (HK$2.03 billion) to finance the purchase of aircraft, the company said.

Cathay intends to buy three cargo freighters in a mix of 747s and smaller 777s, bankers familiar with the matter said. The 10-year loan will be secured by mortgages on the aircraft, which will be flown by cargo subsidiary Air Hong Kong. It plans to close the loan by the end of the week, Cathay said.

Bankers said the company is seeking to pay less than 40 basis points over the London interbank offered rate, a narrow spread for a loan of this maturity. Typically, the longer the term of a loan, the more the borrower pays, with most corporate loans running for seven years or less since banks are reluctant to take on the extra risk of a longer payback period.

The only other recent 10-year deal in the Hong Kong market was an HK$8 billion loan arranged by the Kowloon Canton Railways Corporation. Only HK$1 billion of that deal was for 10 years, and the lenders got paid 52 basis points. The remaining HK$7 billion was broken into loans of shorter duration, including a seven-year tranche which paid lenders 32 basis points.

In that deal, KCRC's government backing helped push costs down, an advantage publicly traded Cathay lacks. And with oil prices hitting historic highs, driving most airlines _ though not Cathay _ into the red, bankers are skeptical the company can get such a low-priced loan off the ground.

Working in the airline's favor, however, is the fierce competition among cash-rich banks that has dragged fees down. Fees have gotten so low on some deals that they barely make economic sense for the banks involved.

Sun Hung Kai Properties established a benchmark for cheap borrowing when it arranged a HK$12.6 billion loan for 31 basis points in fees at the beginning of this year. And China Light and Power paid only 25 basis points on a loan it arranged soon after.

Potential fees on the Cathay financing have already been pushed too low for some banks to be interested. ``It's very competitive and not worth the effort,'' said one banker who dropped out of the bidding.

Earlier this year, new Cathay chief executive Philip Chen said the airline was planning to add two freighters to Air Hong Kong's fleet and six passenger aircraft to its own next year. The company also plans to inaugurate new freighter services later this year to the US cities of Atlanta and Dallas, two key transportation hubs for the country's heartland.

Cathay carried 518,000 tonnes of cargo in the first half of this year, earning HK$6 billion in turnover. That was up from the 470,000 tonnes and HK$5.3 billion earned in the first six months last year. Cargo yield, or revenue per kilometer traveled and tonne carried, rose by three cents to HK$1.75.
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Old August 31st, 2005, 07:38 PM   #455
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Cathay plans to increase passenger fuel surcharge

HONG KONG, Aug 31 (Reuters) - Cathay Pacific Airways said on Wednesday it plans to increase its passenger fuel surcharge to help compensate for soaring oil prices.

Cathay, the world's sixth-biggest airline by market value, said it will seek approval from Hong Kong's civil aviation department next month in what would be the firm's seventh fuel surcharge increase since June 2004.

"We know people don't like paying but they seem remarkably resigned," said Tony Tyler, chief operating officer of Cathay Pacific in an interview with Reuters.

Tyler said the fuel surcharges had so far had no effect on passenger demand for tickets.

"There's no sign in terms of level of demand. In terms of anecdotal evidence, we don't get people shouting at us," Tyler said.

Oil prices hovering close to record highs above US$70 have become a growing worry for companies and investors around the world, with fears that further increases could crimp corporate profits and dent economic growth.

Cathay currently charges its customer an additional US$42.6 per ticket on long-haul flights and US$11 on short-haul flights.

Tyler would not say by how Cathay aimed to increase the current surcharge but said his firm applied for a slightly smaller increase each time it submitted an application.

The airline was looking at a multitude of methods to decrease the impact of rising fuel costs including shifting to lightweight cargo containers and a change in some stipulated air routings, or "tracks," to cut down flying times.

The airline currently is hedging roughly 10 percent of its fuel costs with the stated goal of hedging up to one third its fuel costs.

Cathay has not cut any routes it flies as a cost saving measure, but Tyler said more routes will "come under the microscopes" if prices remain high.

Shares in Cathay Pacific closed 3.2 percent higher at HK$14.40 on Wednesday outperforming a 0.13 percent dip in the benchmark Hang Seng Index <.HSI>. The shares are down 2.3 percent this year.
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Old September 2nd, 2005, 03:44 AM   #456
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Cathay specific about Pacific
Steve Creedy
2 September 2005
The Australian

CATHAY Pacific has joined a lengthening line of overseas carriers likely to push for rights across the Pacific if the Australian Government's review on aviation policy gives Singapore Airlines (SIA) access to the lucrative route.

Cathay Pacific chief executive Philip Chen says the airline was short-changed in negotiations to open up access between Europe and Australia via Hong Kong.

"There is only one principle I insist on and that's equality and fairness," Mr Chen told The Australian during a visit to Sydney this week.

"And surely every government will be asking for the maximum benefit (for) its own carrier but we see that Qantas has now got rights between Hong Kong and London."

The Australian Government launched a high-level review of aviation policy when it postponed a decision on the Singaporean push to complete an open-skies agreement that would allow the SIA services to the US.

Emirates has also indicated it would be interested in the route if SIA is allowed to fly it.

Asked whether access to the trans-Pacific route met his criteria of equality, Mr Chen said: "Well, I'll just say we must get something of equal value. It can't be right if it's not equal."

Mr Chen, 49, took over the reins at Cathay in January after a career at the company spanning three decades. It included stints as the chief of Hong Kong Dragon Airlines and as the general manager of Swire China.

Prior to taking the top job, he was chief operating officer and deputy managing director.

Inheriting a legacy carrier at a time when fuel costs are at historic highs and full-service carriers are under attack has not dimmed the personable executive's belief that Cathay has a bright future.

While fuel costs dragged down the airline's half-year profit by 5.7 per cent to $HK1.67 billion ($285 million), it remains one of Asia's most profitable carriers.

Rising traffic in the first half of this year allowed Cathay to add capacity while retaining "quite healthy" 78 per cent load factors, and stabilising yields. Nonetheless, Mr Chen notes many of the gains are being eroded by high fuel costs.

"It will continue to affect our profit because in the second half we see a very serious impact from fuel costs," he says, echoing warnings by other airline CEOs.

"And there's no sign of it rapidly coming down, and that means economies are really seriously affected if that's the case."

Like most airlines, Cathay has introduced fuel surcharges but Mr Chen says this covers less than half of its additional fuel costs.

He reckons the airline's surcharges of $US11 ($14.6) on short sectors and $US42.60 per sector on long-haul routes are reasonable. And while there has not yet been any sign of softening demand, he agrees that continuing high fuel prices could well change that.

"Economic textbooks say that if we continue to go on like this it will definitely affect demand," he says.

On reducing costs, Mr Chen says unit costs at the airline have come down from $HK2.80 per available tonne kilometre in 1995 to $US2.07 in 2004 and it aims to cut them a further 10 per cent over three years. He does not see Cathay succumbing to the threat of competition from low-cost carriers or that they herald the death of full-service carriers generally.

"We believe we must offer very good value for money," he says. "So I dare say Cathay Pacific will remain very competitive in all those market segments and just offer the best products at the best values."

He was also dubious about plans for long-haul, low-cost carriers, such as the Qantas expansion of Jetstar.

Nor has Cathay plans to follow some airlines and abandon its award-winning, three-class model.

Mr Chen says the airline is continually improving its products in all three classes and is already introducing another upgrade to its video on demand system.

He says there will always be a market for first class on certain long-haul routes. "If you look at our non-stop New York service from Hong Kong, our front end is always very strong because that is the best product and the best value you can get," he says. "If you look at the London service, it's always very strong.

"But I think there are some regional markets, for example where it's only one or two hours, where we don't think there's an effective market for full first class."

He adds: "You will get the Cathay Pacific product whether you fly first, business or economy and I think that's very important," he says. An area where Mr Chen does not follow the conventional wisdom is on the notion of industry consolidation, particularly in Asia.

He says Asia remains fragmented with airline ownership still based on nationalism and where airlines are seen to serve as big generators of export revenue.

"Having said that, it doesn't prevent us from working together more closely as individual operators so you see the emergence of alliances slightly less than a decade ago and Oneworld's working out quite well for us," he says.

Asked about Australia, the Cathay boss sees a bright future. The Hong Kong-based carrier has 47 weekly passenger, and two weekly freighter, services into Australia and services Sydney, Melbourne, Brisbane, Perth, Adelaide and Cairns.

It will add a fourth daily Hong Kong-London service in December and touts its home city -- which is on the great circle route to Europe, has a centrally located network to Asia and is on China's doorstep -- as a natural hub for Australian travellers.

Mr Chen also believes there is "huge potential" to bring tourists to Australia, particularly from the rapidly expanding and massive Chinese market.

He notes that more half of the 21.8 million visitors to Hong Kong in 2004 came from mainland China and they were all affluent.

"You can definitely see that in other parts of the world as well," he says. "You go to some of these hot tourism destinations in Europe and Asia and you can hear Mandarin being spoken. And even the little boys selling things in the streets in Europe, they don't talk to you in Japanese anymore if they see an Asian face, they talk to you in Mandarin."

He says nearby and familiar destinations will be the first to gain from Chinese outbound tourism growth.

"But I think given the right promotions and the right facilities -- flights, accessibility, flexibility and visa convenience -- Australia definitely stands to gain and the potential there is just unbelievable." Mr Chen's expectations about the impact of China on the region and the potential for growth as its 1.3 billion people help fuel his optimism about the future of Cathay and the region.

"We're putting our money where our mouth is," he says. "In 1997, we had 59 aircraft, since then we've gone to 89 in 2004 and this month ... to 95.

"Our order books take us to 107 and this excluding Air Hong Kong (60 per cent owned by Cathay), it's Cathay proper.

"So basically it's double the fleet in about 10 years and this is not a small fleet, it's all wide-bodies. I think that is the best answer to what is your future, what is your confidence, how do you see the potential."
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Old September 3rd, 2005, 12:40 AM   #457
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Cathay specific about Pacific
Steve Creedy
September 02, 2005



CATHAY Pacific has joined a lengthening line of overseas carriers likely to push for rights across the Pacific if the Australian Government's review on aviation policy gives Singapore Airlines (SIA) access to the lucrative route.

Cathay Pacific chief executive Philip Chen says the airline was short-changed in negotiations to open up access between Europe and Australia via Hong Kong.

"There is only one principle I insist on and that's equality and fairness," Mr Chen told The Australian during a visit to Sydney this week.

"And surely every government will be asking for the maximum benefit (for) its own carrier but we see that Qantas has now got rights between Hong Kong and London."

The Australian Government launched a high-level review of aviation policy when it postponed a decision on the Singaporean push to complete an open-skies agreement that would allow the SIA services to the US.






Emirates has also indicated it would be interested in the route if SIA is allowed to fly it.

Asked whether access to the trans-Pacific route met his criteria of equality, Mr Chen said: "Well, I'll just say we must get something of equal value. It can't be right if it's not equal."

Mr Chen, 49, took over the reins at Cathay in January after a career at the company spanning three decades. It included stints as the chief of Hong Kong Dragon Airlines and as the general manager of Swire China.

Prior to taking the top job, he was chief operating officer and deputy managing director.

Inheriting a legacy carrier at a time when fuel costs are at historic highs and full-service carriers are under attack has not dimmed the personable executive's belief that Cathay has a bright future.

While fuel costs dragged down the airline's half-year profit by 5.7 per cent to $HK1.67 billion ($285 million), it remains one of Asia's most profitable carriers.

Rising traffic in the first half of this year allowed Cathay to add capacity while retaining "quite healthy" 78 per cent load factors, and stabilising yields. Nonetheless, Mr Chen notes many of the gains are being eroded by high fuel costs.

"It will continue to affect our profit because in the second half we see a very serious impact from fuel costs," he says, echoing warnings by other airline CEOs.

"And there's no sign of it rapidly coming down, and that means economies are really seriously affected if that's the case."

Like most airlines, Cathay has introduced fuel surcharges but Mr Chen says this covers less than half of its additional fuel costs.

He reckons the airline's surcharges of $US11 ($14.6) on short sectors and $US42.60 per sector on long-haul routes are reasonable. And while there has not yet been any sign of softening demand, he agrees that continuing high fuel prices could well change that.

"Economic textbooks say that if we continue to go on like this it will definitely affect demand," he says.

On reducing costs, Mr Chen says unit costs at the airline have come down from $HK2.80 per available tonne kilometre in 1995 to $US2.07 in 2004 and it aims to cut them a further 10 per cent over three years. He does not see Cathay succumbing to the threat of competition from low-cost carriers or that they herald the death of full-service carriers generally.

"We believe we must offer very good value for money," he says. "So I dare say Cathay Pacific will remain very competitive in all those market segments and just offer the best products at the best values."

He was also dubious about plans for long-haul, low-cost carriers, such as the Qantas expansion of Jetstar.

Nor has Cathay plans to follow some airlines and abandon its award-winning, three-class model.

Mr Chen says the airline is continually improving its products in all three classes and is already introducing another upgrade to its video on demand system.

He says there will always be a market for first class on certain long-haul routes. "If you look at our non-stop New York service from Hong Kong, our front end is always very strong because that is the best product and the best value you can get," he says. "If you look at the London service, it's always very strong.

"But I think there are some regional markets, for example where it's only one or two hours, where we don't think there's an effective market for full first class."

He adds: "You will get the Cathay Pacific product whether you fly first, business or economy and I think that's very important," he says. An area where Mr Chen does not follow the conventional wisdom is on the notion of industry consolidation, particularly in Asia.

He says Asia remains fragmented with airline ownership still based on nationalism and where airlines are seen to serve as big generators of export revenue.

"Having said that, it doesn't prevent us from working together more closely as individual operators so you see the emergence of alliances slightly less than a decade ago and Oneworld's working out quite well for us," he says.

Asked about Australia, the Cathay boss sees a bright future. The Hong Kong-based carrier has 47 weekly passenger, and two weekly freighter, services into Australia and services Sydney, Melbourne, Brisbane, Perth, Adelaide and Cairns.

It will add a fourth daily Hong Kong-London service in December and touts its home city - which is on the great circle route to Europe, has a centrally located network to Asia and is on China's doorstep - as a natural hub for Australian travellers.

Mr Chen also believes there is "huge potential" to bring tourists to Australia, particularly from the rapidly expanding and massive Chinese market.

He notes that more half of the 21.8 million visitors to Hong Kong in 2004 came from mainland China and they were all affluent.

"You can definitely see that in other parts of the world as well," he says. "You go to some of these hot tourism destinations in Europe and Asia and you can hear Mandarin being spoken. And even the little boys selling things in the streets in Europe, they don't talk to you in Japanese anymore if they see an Asian face, they talk to you in Mandarin."

He says nearby and familiar destinations will be the first to gain from Chinese outbound tourism growth.

"But I think given the right promotions and the right facilities - flights, accessibility, flexibility and visa convenience - Australia definitely stands to gain and the potential there is just unbelievable." Mr Chen's expectations about the impact of China on the region and the potential for growth as its 1.3 billion people help fuel his optimism about the future of Cathay and the region.

"We're putting our money where our mouth is," he says. "In 1997, we had 59 aircraft, since then we've gone to 89 in 2004 and this month ... to 95.

"Our order books take us to 107 and this excluding Air Hong Kong (60 per cent owned by Cathay), it's Cathay proper.

"So basically it's double the fleet in about 10 years and this is not a small fleet, it's all wide-bodies. I think that is the best answer to what is your future, what is your confidence, how do you see the potential."
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Old September 8th, 2005, 06:23 PM   #458
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06 September 2005
Corporate Press Release
Hong Kong International Airport, Cathay Pacific the world’s #1

Hong Kong is now home to the world’s best airport and airline, say millions of travellers worldwide who voted in recent polls conducted by UK-based Skytrax Research.

On Monday, 5 September 2005, Airport Authority Hong Kong (AA) collected its award for Airport of the Year 2005 and Cathay Pacific accepted the award of Airline of the Year 2005 at a special presentation ceremony held in London.

Hong Kong International Airport (HKIA), represented by Director General of the Hong Kong Special Administrative Region Government’s Economic and Trade Office in London, Carrie Lam, together with Cathay Pacific’s General Manager Europe Chitty Cheung, received the awards from Skytrax Research’s Chief Executive Edward Plaisted.

London-based Skytrax said that its 2005 World Airline Awards poll was the world's largest passenger survey ever with more than 12.3 million eligible nominations. Votes were casted by 94 different nationalities from June 2004 to May 2005.

Hong Kong International Airport, managed by Airport Authority Hong Kong, was earlier named “Airport of the Year” for the fifth consecutive year, while Cathay Pacific Airways was named “Airline of the Year 2005” for the second time in three years in June. Cathay Pacific also won titles for Best Airline Asia, Best First Class and Best Airline Lounges in this year’s Skytrax poll.

AA’s Chief Executive Officer Dr David J Pang said, “These awards bring pride to the entire Hong Kong community. Hong Kong International Airport has amassed an outstanding pool of industry leaders. This partnership has made us the best in the international aviation market. But we must not be complacent about our achievements; we will continue to enhance the unique and total airport experience we provide to millions of travelers worldwide.”

Cathay Pacific Chief Executive Philip Chen said: "To be voted 'Airline of the Year' twice in three years is no small achievement. The Skytrax award is testament to the hard work of every member of Cathay Pacific staff and the continuous support from all of our business partners to deliver superior value and service to our customers.

With Hong Kong now home to the world's best airline and the world's best airport we can work together to further develop Hong Kong's position as a global aviation hub as well as gateway to the Chinese Mainland."



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Old September 9th, 2005, 07:33 AM   #459
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Approach clear for cabin crew
Cathay is looking for flight attendants with their feet on the ground

3 September 2005
South China Morning Post

FOR THOSE WHO have an outgoing personality, are service orientated and display an explorer's wanderlust, it is hard to imagine a more appealing employer than an airline.

As far as entry-level jobs go, becoming a flight attendant is very near the top of the glamour scale with its many attractions, but the job also requires commitment, flexibility and a professionally enthusiastic capacity for hard work.

Prospective high-fliers will be pleased to learn that industry analysts say job prospects for flight attendants are good because air travel will continue to grow in the coming years.

Cathay Pacific's commitment to expand its services by increasing its number of flights, introducing new destinations and upgrading its fleet has created continuous demand for flight attendants.

Cathay Pacific cabin crew manager Shirley Au Yeung said the role of flight attendants focused on safety and service, and was vital to the airline's success.

"Cabin crew are the people that passengers have the most contact with during a flight so it is important that flight attendants make sure that each flight operates as smoothly as possible," Ms Au Yeung said.

To achieve this, cabin crew must be able to relate to and communicate clearly with passengers to make them feel welcome and secure during their journey.

Recruiters look for a lively, outgoing personality and a passion for the industry. Ms Au Yeung said that with almost 6,500 cabin crew made up of 10 nationalities, it was important that cabin crew members worked professionally as a team.

"Flight attendants need to display friendly, outgoing personalities and enjoy working in a safety conscious environment where customer service is a priority," Ms Au Yeung said.

Different destinations and changing passenger profiles create a unique and challenging environment on each flight.

Once accepted, recruits undergo six weeks of comprehensive training, which includes intensive focus on safety and customer service skills. These skills are enhanced and upgraded regularly with training programmes.

Cathay also helps cabin crew prepare for the challenges and responsibilities they face through problem-solving programmes and practical sessions that deal with all kinds of passenger-service situations. After successfully completing an initial training programme, new recruits begin their career as flight attendants, usually working in economy class. With experience and satisfactory performance, flight attendants progress along a career path to become flight purser, senior purser and in-flight service manager.

Suitable and qualified cabin crew may also apply for other positions within the company. As a matter of company policy Cathay Pacific jobs are advertised internally. Salaries are designed to be attractive, too. New recruits are paid about $12,000, which usually comes with other benefits.

Flight attendant applicants need a minimum HKCEE standard with a pass in English (syllabus B), and the ability to speak and read English and Cantonese/Mandarin, or one of the required Asian languages.

Opportunities also exist for those with experience in the hospitality and service industries.

Career development and resourcing manager Patrick Yu said because the airline industry was one that lived and died by customer satisfaction, cabin crew were expected at all times to work efficiently and professionally, even when under pressure.

"As frontline ambassadors, Cathay Pacific cabin crew ensure that passengers are comfortable, assist sick and disabled passengers and calm the occasional agitated traveller," Mr Yu said.

After six months with Cathay Pacific, flight attendant Kayee Tsang said the job was all she expected it to be and a great deal more.

"I enjoy the cosmopolitan experience of working with a diverse group of people, learning about other cultures and visiting new places," Ms Tsang said.

As a result of the training and working with experienced colleagues, she developed more confidence when dealing with passengers from different cultures and handling diverse situations.

"Although at times it is physically demanding, how many other jobs offer the benefits that flying does, not to mention the shopping and sightseeing?" Ms Tsang said.

The company is holding an open day tomorrow at the New World Hotel. Potential applicants are invited to bring their resume.
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Old September 10th, 2005, 06:04 PM   #460
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Man fined $20,000 for trying to open airliner's door during flight
Jonathan Li
9 September 2005
South China Morning Post

A judge yesterday fined a mentally ill man $20,000 for trying to open the cabin door of a Cathay Pacific jet at an altitude of 10,700 metres.

Anthony Yeung Ngor-wah, 37, who suffers from schizophrenia, could have faced up to seven years in jail after being found guilty in District Court of attempting an act likely to endanger an aircraft in flight.

But Deputy Judge William Lam Kiu-po said he was "not of the view jail serves the purpose in the present case with its unusual circumstances".

He said he would have considered a lengthy jail term had it not been a "near impossibility" for Yeung to open the door on his own.

Yeung, a recording engineer, had pleaded not guilty but was convicted last month.

The court heard how cabin crew and a passenger wrestled him away from the door as he struggled to turn the handle on a flight from Tokyo to Hong Kong in November.

Yeung later told a psychiatrist he had been trying to escape persecution.

Yesterday, Judge Lam noted that two psychiatrists, including Yeung's doctor, had concluded he had been making good progress since his illness went into remission in January.

The psychiatrists recommended that he receive 16 months' treatment as an outpatient. Judge Lam said he was convinced Yeung would continue his treatment.

Yeung's lawyer, Osmond Lam Kwok-fai, said that although the probation officer concluded Yeung was not a good candidate for probation, the report nevertheless noted he had a good reputation and was well-liked professionally.

Last month, after finding him guilty, Judge Lam ordered Yeung's wife to accompany him on a flight to Singapore. The judge made the decision after being told that Yeung needed to travel to the city in late August to work on a charity show.

It is not known if Yeung travelled on Cathay Pacific.
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