CX°/KA°/LD | Swire Group: Cathay Pacific/Dragonair/Air Hong Kong

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Cathay Plans HK - Beijing Freighter Flights
By Vicki Kwong
22 July 2006
China Daily

Cathay Pacific Airways Ltd, the world's fourth-largest international cargo carrier, plans to start Hong Kong-Beijing freighter flights and increase its Shanghai service as rivals target the mainland for expansion.

Hong Kong's biggest airline may also add more cargo flights to southern Europe and India over the next few years to meet demand from customers, Ron Mathison, Cathay's general manager for cargo, said in a July 19 interview in the city.

Cathay earned 25 per cent of sales last year from cargo, as exports fuelled economic growth of 9.9 per cent on the Chinese mainland. Deutsche Lufthansa AG, Singapore Airlines Ltd and other carriers are forming joint ventures to challenge Cathay in the world's fastest-growing major economy.

"There's enormous growth potential, especially with the opening of the mainland to competition for cargo," said Peter Drolet, an analyst at UOB Kay Hian Ltd in Hong Kong. Cathay is "dedicated, for the most part, to the growing mainland market," said Drolet, who has a "buy" rating on the airline.

Cathay will add all-cargo flights to Stockholm and Toronto in September, raising its number of freighter destinations to 30, it said on June 19. The airline has applied for permission to fly its freighters to Beijing and to increase its daily Shanghai service, Mathison said.

Cathay may add flights after a new air services deal between Hong Kong and the mainland comes into effect in October. The carrier already has passenger services to Beijing and the city of Xiamen in East China's Fujian Province.

"Our network is a key asset and that's why we need to grow it," Mathison said. "It's not just the number of frequencies it's also the range of destinations."

The carrier's proposed HK$8.22 billion (US$1.1 billion) purchase of Hong Kong Dragon Airlines Ltd, which will give Cathay 21 more passenger routes on the mainland, will also expand its cargo network. Dragonair, as the airline is called, flies its six freighters to New York, Shanghai, Xiamen and other cities.

Airlines are investing in the mainland, as the mainland's air cargo market is set to grow 14 per cent each year until 2009, according to an International Air Transport Association forecast. Still, the increased capacity and largely one-way traffic flow is squeezing margins.

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Cathay Pacific hires local staff for Toronto – Hong Kong route
Corporate Press Release

TORONTO (April 24, 2006) – Cathay Pacific Airways has long been associated as one of the finest airlines flying between Canada and Hong Kong. This summer, the award-winning airline’s commitment to Canada deepens with the opening of a flight attendant base in Toronto.

“The Toronto flight attendant base is an obvious choice for us,” says Cathay Pacific’s Philippe Lacamp, Vice President Canada. “Our daily Toronto-Hong Kong service plays an important role in the success of Cathay Pacific’s worldwide operations and at a time when many airlines are looking to scale back, our commitment to service excellence is unwavering. Torontonians clearly wish to be part of it,” he adds.

The range of language capabilities offered in Canada is an obvious asset and brings added value to Cathay Pacific’s customers. The newly hired Toronto flight attendant crew is currently undergoing extensive hospitality and safety training in the airline’s Flight Operations Centre in Hong Kong and will be working onboard the flights starting this summer.

Cathay Pacific has been operating into Canada since 1983. Service between Toronto and Hong Kong launched in 1994. The Toronto flight attendant base will be Cathay Pacific’s third outside of Hong Kong and the second in Canada. In fact, the airline’s first crew base outside of Hong Kong was established in Vancouver in 1997.

In February, US-based Air Transport World magazine named Cathay Pacific ‘Airline of the Year 2006,’ for its unwavering commitment to safety, technical excellence and customer service. In 2005, Cathay Pacific was voted ‘Airline of the Year 2005,’ in the world’s largest passenger poll conducted by UK-based Skytrax Research.

About Cathay Pacific
Cathay Pacific Airways Limited is one of the world’s leading passenger and cargo airlines, serving more than one million customers a month to Asia, Europe and North America. Cathay Pacific offers two flights daily non-stop from Vancouver to Hong Kong, daily non-stop service from Vancouver to New York and daily direct service from Toronto to Hong Kong, plus a 3-time weekly freighter service between Vancouver and Hong Kong. Founded in 1946 and headquartered in Hong Kong, Cathay Pacific and its two major shareholders are listed on the Hong Kong Stock Exchange. Cathay Pacific is a member of the oneworld™ alliance, which includes Aer Lingus, American Airlines, British Airways, Finnair, Iberia, Lan Chile and Qantas.

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Cathay Pacific
IT all began with the vision of two former World War II pilots, American Roy Farrell and Australian Sydney de Kantzow, who registered Cathay Pacific Airways in September 1946. Legend has it that the founders thought of its unique name in a bar at the Manila Hotel. After a majority shareholding was acquired by Hong Kong trading company Butterfield and Swire, Cathay Pacific Airways Limited began operations on July 1, 1948. Cathay Pacific has a special relationship with the Philippines, which is one of its earliest passenger flight destinations along with Shanghai, Bangkok, Singapore and Saigon.
24 July 2006
Manila Bulletin

For almost 60 years, Cathay Pacific has continued to grow, making substantial investments to develop its fleet, services, and its corporate headquarters at the Hong Kong International Airport.

The airline flies one of the youngest and most modern fleets in the skies. Beginning with a single plane, a Douglas DC3 affectionately known as "Betsy", it now flies about 90 all-wide-body aircraft, and within two years, it will already operate more than 100 aircraft throughout its international network. A Boeing 777300ER will be delivered in September, a further four will be added in 2007, three in 2008, four in 2009, and four in 2010.

Every week, the airline operates more than 1,300 flights throughout its network. And every month, it flies more than one million people to and through Hong Kong. Its network serves over 90 destinations in 33 countries and territories worldwide with unduplicated routes of 234,000 miles – a distance equal to nine trips around the world.

Cathay Pacific’s hub, the Hong Kong International Airport has been voted "The World’s Best Airport" from 2001 to 2005, which enhances Hong Kong’s position as a global aviation and logistics hub.

Cathay Pacific is also now one of the most admired airline in the world with a string of awards including the recent "Airline of the Year 2006" given by the London-based global travel and transport information company OAG. It topped more than 40 airlines in 16 regional and global categories to win the said accolade, capping an unprecedented run of coveted best airline awards for product and service excellence as it celebrates its 60th anniversary.

The award is the fourth consecutive "Airline of the Year" won by Cathay Pacific in the past two years. It was named "Airline of the Year 2005" in the world’s biggest passengers poll conducted by Skytrax; voted "Airline of the Year" by readers of trade magazine TTG Asia in October last year; and named "Airline of the Year 2006" by Air Transport World magazine in January.

"The excellence of all who work at Cathay Pacific and the support of our partners and customers made this award possible. To be awarded during our diamond anniversary is the jewel in the crown and highlights our commitment to make our service truly sparkle," said Vivian Lo, Country manager of Cathay Pacific-Philippines.

Likewise, Cathay Pacific currently ranks as the world’s third most profitable airline (based on 2004 net profit) after Singapore Airlines and Emirates, and sixth largest airline by stock market value. It is also the world’s sixth largest cargo carrier by volume, along with FedEx, UPS, Lufthansa, Korean Air and Singapore Airlines.

Good Food & Fine Travel

In celebration of its 60th anniversary, the airline offers a gastronomic treat to its passengers in partnership with Hong Kong’s top Chinese restaurants, adding a new dimension to a passenger’s journey by experiencing the "Best Chinese Food in the Air". About 100 special Chinese dishes will be served to passengers on all regional and long haul flights departing Hong Kong until Dec. 31.

With partner restaurants Celestial Court Chinese Restaurant, Sheraton Hong Kong Hotel and Towers, Jade Garden Chinese Restaurant, Lei Garden Restaurant, One Harbour Road, Grand Hyatt Hong Kong, Peking Garden Restaurant, T’ang Court, Langham Hotel Hong Kong and Yung Kee Restaurant, each will feature some of its signature dishes, including deluxe seafood dumpling, sautéed wild mushrooms and shrimps in XO sauce, pan-fried prawns with spring onion in carrot sauce, and braised seabass with preserved gooseberry.

Offering its flyers not just top-rate service but vibrant memories as well, Cathay Pacific releases a set of its retro travel bags and the latest collectible limited edition model aircrafts.

Cathay Pacific recreated three collectible classic travel bags from 1950s, ‘60s and ‘70s in exact details. "Our classic Cathay Pacific bags were once part of the whole travel experience and will recall good memories for many people of the first times they ever flew," said Cathay Pacific marketing services manager Daniel Heung. "The retro-style is also very much back in fashion again and will create a buzz among younger style-conscious people too," added Heung, who is also the bags’ creator.

Cathay Pacific also released detailed die-cast metal models of the Douglas DC6, the Lockheed L188 Electra, the General Dynamics Convair 880 (Cathay Pacific’s first jet), the Boeing 707, Lockheed TriStar and Boeing 747. Each model represents a crucial period in the airline’s development as it cemented its reputation as a leading regional carrier and finally entered the jet age. Production is limited to just 6,000 pieces and each will have a numbered certificate of authentication. The bags and the limited edition collectable models of the airline’s historic aircraft can be purchased inflight or online

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Photo Link : http://www.pbase.com/hcl/

Many photos of CX planes taking off.

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Cathay Pacific will hire 180 in Bay Area
5 August 2006
The San Francisco Chronicle

Hong Kong's Cathay Pacific Airways plans to hire 180 people in the Bay Area to staff San Francisco crews for use on its service between San Francisco International Airport and Hong Kong International Airport, the airline said.

A major player in the Asia Pacific aviation market, Cathay Pacific already has several dozen employees in its offices on Union Square.

The carrier moved its North America headquarters to San Francisco from Los Angeles in February 2005.

The new employees would be added to that workforce.

The move to add staff is a relative rarity in U.S. aviation, which has seen domestic carriers lay off tens of thousands of workers during the 2000-03 recession and after the Sept. 11, 2001, terrorist attacks reduced consumer demand for air travel.

Cathay Pacific is recruiting for, among others, "a base manager, base administrative staff, and flight attendants.

For the cabin crew positions, fluency in English and one Asian language is required, the airline said in a statement.

The new crew members will be sent to Cathay's headquarters in Hong Kong for six weeks' training before returning to work in the Bay Area, the airline said.

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Cathay's H1 to level off, full-year seen choppy
By Sophie Taylor

HONG KONG, Aug 7 (Reuters) - Cathay Pacific Airways Ltd. , Asia's third-largest airline by market value, should keep first-half earnings level as robust passenger growth around its north Asian stronghold offsets high fuel prices.

In the year ahead, Cathay's bottom line may hinge on how well it softens the impact of lofty oil prices via hedging and fuel surcharges -- a familiar scenario that it has struggled with for years, analysts say.

Singapore-traded jet fuel <JET-SIN> has doubled since January last year, rising 23 percent in the first half alone, hitting Cathay, Singapore Airlines and Qantas Airways Ltd. alike.

Cathay is scheduled to report interim earnings on Wednesday.

Six-month net profit is forecast to edge up 1.8 percent to HK$1.7 billion (US$223 million) from HK$1.67 billion a year ago, according to a Reuters poll of four analysts' forecasts.

Next year, Cathay may start to benefit from a multi-way merger with several Chinese-focused carriers, including Dragonair, which would give the Hong Kong carrier long-coveted freer access to a booming mainland travel market.

"The deal gives Cathay much greater exposure to mainland China overnight -- one of the few high-growth aviation markets in the world," said Andes Cheng, associate director at South China Brokerage. "But, short term, we won't see a great effect.

"Administrative costs and an increase in fixed costs mean it could turn into a drag" at most, he added.

Cathay's main worry for now is the sky-high price of fuel, which comprises a third of its costs. Hong Kong's largest carrier posted a 10.7 percent rise in June passenger traffic.

"Cathay's June numbers confirm the revenue environment remains strong," JP Morgan analyst Peter Negline wrote. "Nevertheless, high oil prices continue to erode all these gains."

Cathay is expected to post a mild 6 percent rise in full-year net profit to HK$3.5 billion from HK$3.3 billion in 2005, according to the mean forecast of 16 analysts polled by Reuters Estimates.

The airline's shares rose 0.4 percent in January-June, lagging the Hang Seng Index's <.HSI> 9.4 percent gain. Singapore Airlines gained 2.4 percent and Qantas rose 27 percent. Cathay's shares are pricier at about 13.4 times forecast earnings, versus 11.6 times for Singapore Air and 10 times for Qantas.

Singapore's flag carrier doubled its quarterly profit after a one-off gain from property sales, but warned this month that rising costs would weigh and jet fuel prices could stay high.

Hong Kong has let Cathay Pacific -- which aims to hedge a third of its fuel this year -- to raise passenger surcharges.

"If Cathay's hedging worked in the first half, investors' focus can switch to passenger numbers and route expansion," said Stone Shi, analyst at Sun Hung Kai Financial Group.

Cathay, which faces rising competition from budget carriers such as Jetstar Asia and Malaysia's AirAsia , said in June it would pay HK$8.22 billion in cash and shares to take over rival Dragonair in a long-expected deal.

As part of the deal, Cathay and Air China Ltd. will step up cooperation, with Cathay paying HK$4.07 billion to double its stake in Beijing-run Air China to 20 percent. In return, Air China would pay HK$5.39 billion for 10 percent of Cathay. (US$1=HK$7.8)

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Cathay Pacific boosts North America freighter services with additional flight to Dallas and Atlanta
3 August 2006
Corporate Press Release

Cathay Pacific Airways today announced an expansion of its freighter service to Dallas and Atlanta in the United States with an additional flight from Hong Kong every Monday. The extra flight commences 7 August 2006 and takes the number of flights each week to four. All flights operate first to Dallas, continuing on to Atlanta before returning to Hong Kong. A Boeing 747-400 Freighter is used on the route.

The additional flight will help meet rising demand from Hong Kong and the Chinese Mainland to growing markets in the south and south-eastern United States. The airline started flying to Dallas and Atlanta on 19 November last year, enabling it to reach any part of the continental US within a day’s trucking from its gateway cities. The airline’s other freighter destinations in the US are Los Angeles, San Francisco, Chicago and New York.

Cathay Pacific’s Director & General Manager Cargo Ron Mathison said: “Since the launch of the route last November, demand to Dallas and Fort Worth has been consistently strong, and we are pleased to be able to meet the needs of the market by adding another flight each week. Indeed, demand to all our North American destinations is consistently high and we look forward to the time when we can use Boeing 747-400 ERF ‘Extended Range Freighters’ to increase payload on these important routes.”

Six of the Extended Range Freighters have been ordered for delivery between May 2008 and April 2009. In the meantime the airline is expanding its freighter fleet through the addition of Boeing 747-400BCF “Boeing Converted Freighters, with the second out of six on firm order arriving beginning revenue service in mid-July. A third is scheduled to arrive from the TAECO facility in Xiamen, where the conversions are carried out, in September, with the remaining three joining the fleet next year.

Cathay Pacific currently operates a fleet of 16 freighters flying to 28 destinations around the world. Two more destinations - Stockholm and Toronto - will be added in September to further strengthen Hong Kong’s position as a global logistics hub. The airline also recently announced plans to build and operate a third air cargo terminal at Hong Kong International Airport, underlining its aggressive expansion of cargo services to and through Hong Kong.

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Hong Kong's Cathay Pacific Airways says first-half net profit unchanged from year earlier
By WILLIAM FOREMAN
9 August 2006

HONG KONG (AP) - Cathay Pacific Airways Ltd., Hong Kong's biggest airline, said Wednesday its first-half net profit was unchanged from the same period last year as a big jump in fuel prices eroded gains in passenger and cargo revenue.

The airline warned that the second half of 2006 could be tough because of fuel. "Our biggest challenge will continue to be soaring fuel costs," said Cathay Chairman Christopher Pratt.

Net profit for the six months that ended in June totaled HK$1.67 billion (US$214.7 million; €167.2 million). Revenue rose to HK$27.09 billion (US$3.5 million; €2.7 million) from HK$23.88 billion, the airline said.

"This was a creditable performance given the high cost of fuel," Pratt said.

The carrier said fuel costs -- which amount to more than a third of operating costs -- hit HK$8.68 billion (US$1.1 billion; €871.2 million) in the first half -- up 30 percent from the same period last year.

Pratt cautioned that fuel prices might climb even higher if the political situation in the Middle East continued to be volatile.

Philip Chen, Cathay's chief executive, added, "Rising fuel prices aren't just a problem for the airline industry. They could cause a worldwide recession."

Cathay reported solid growth in other key areas.

Passenger revenue rose 8.7 percent to HK$15.94 billion (US$2.0 billion; €1.6 billion) in the first half, the airline said. The airline carried 8.1 million passengers, an 11.1 percent increase from the 7.3 million last year.

Cargo revenue rose 4.9 percent, with a 10.6 percent jump in the tons of cargo carried, the carrier said.

Two months ago, Cathay announced plans to take over its smaller rival, Hong Kong Dragon Airlines Ltd., which offers more flights in the booming mainland Chinese market. The deal would also give Cathay a 20 percent stake in Air China, China's biggest carrier.

Cathay said Dragonair reported a loss in the first half as high fuel prices continued to affect the regional airline's profitability. Cathay, which currently owns 17.8 percent of Dragonair, didn't issue figures for the affiliate's loss.

Dragonair will become a wholly owned unit of Cathay once shareholders approve the HK$8.22 billion (US$1.0 billion; €824.7 million) deal to acquire the remaining shares later this month.

Pratt dismissed claims that taking over Dragonair was a bad move amid rising fuel prices.

"We are very confident about our business model," he said. "There are tremendous growth opportunities, regionally and particularly in China."

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Cathay Pacific Releases July 2006 Traffic Figures
14 August 2006
Corporate Press Release

Cathay Pacific Airways today released traffic figures that show passenger numbers and cargo tonnage edging up as the airline moved into the 2006 summer peak.

In July, the airline carried a total of 1,512,638 passengers, up 4.8% on the same month last year. The passenger load factor for July was up to 84.6% on a capacity growth of 6.6%. Looking at specific routes, Europe had the biggest capacity growth, measured in available seat kilometres - 16.1% up on the same month in 2005.

Cargo carried in July rose by 1.8% on the same month last year to 97,970 tonnes, pushing ahead of a 1.0% rise in capacity. The cargo load factor for the month rose marginally, by 0.8 percentage points to 68.7%.

Cathay Pacific General Manager Revenue Management, Sales & Distribution Ian Shiu said: “We are pleased with the performance on the passenger side of the operation in July. The load factor was high as the summer holidays kicked in, and long-haul routes to Europe and North America were again particularly strong. Our front-end business held up better than expected in the holiday season, helping to keep yield up. The outlook for August and September remains positive, though external factors ranging from typhoons to security threats could impact on our business.”

Cathay Pacific Director & General Manager Cargo Ron Mathison said: "Demand out of Hong Kong and China to long-haul freight destinations remained strong in July, but loads on most routes back to Hong Kong were soft due to strong competition in the market. The month’s performance was buoyed by the launch of a new route to Chennai in India, via Mumbai, and the entry into the fleet of the second of six Boeing B747-400BCF “Boeing Converted Freighters".

The full July 2006 figures are on the following page.
http://www.cathaypacific.com/cpa/en_...0011d21c39____

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Cathay Pacific receives its landmark 100th aircraft at ceremony in Toulouse
29 August 2006
Corporate Press Release



Cathay Pacific Airways today celebrated a significant milestone in its 60-year history - and continued expansion - when it took delivery of its 100th aircraft, an Airbus A330-300, at the Airbus final assembly line in Toulouse, France.

Cathay Pacific Chief Executive Philip Chen accepted the aircraft on the airline's behalf from Airbus Chief Operating Officer – Customers John Leahy. Guest of Honour at the acceptance ceremony was Chief Secretary for Administration of the Hong Kong Special Administrative Region Government, The Honourable Rafael Hui. Representing Rolls-Royce, which has supplied the Trent 700 engines used on the latest fleet addition, was Senior Vice President Asia and Middle East Mick Forey.

The new aircraft, registration B-LAD, comes with a unique livery to mark its special status in the fleet. It has also been given a name, "Progress Hong Kong", which was selected in a naming competition among the airline's staff. The A330-300 has a three-class configuration featuring Cathay Pacific's acclaimed First Class and New Business Class cabins. It will fly on regional and medium-haul routes around the airline's network.

The 100th aircraft arrives as the airline moves into one of the most aggressive periods of expansion in its history, with 36 aircraft currently on firm order. These include five more A330-300s.

Speaking at the aircraft acceptance ceremony in Toulouse, Cathay Pacific Chief Executive Philip Chen said: "It gives me great pleasure to accept our 100th aircraft on the airline's behalf and to welcome Chief Secretary Rafael Hui as Guest of Honour at this special occasion. This delivery marks a significant milestone for Cathay Pacific as we celebrate 60 years of serving the people of Hong Kong, helping to build the city into a leading international aviation hub.

"Our latest aircraft not only caps 60 years of great achievements, but also heralds a new era of expansion for the airline. In the past 10 years we have doubled our fleet size and by October 2009 we will operate more than 130 aircraft. This continued growth represents the confidence we have in the airline, and also the confidence we have in Hong Kong's future as a centre for business and tourism, and as a passenger and freight hub of international importance. Our recent acquisition of Dragonair underlines our commitment to the city and will, I believe, create new synergies that can only benefit Hong Kong."

Chief Secretary for Administration of the HKSAR Government Rafael Hui said: "Cathay Pacific's development is a typical Hong Kong story. Its success is a major driving force behind Hong Kong's aviation development, which in turn supports our continued trade and economic growth."

Airbus Chief Operating Officer – Customers John Leahy said: "Over the past 60 years, Cathay Pacific Airways has built a reputation for being one of the world's most visionary and prestigious carriers. Airbus is very proud to have been part of Cathay Pacific's success story during a period full of enormous challenges. We are proud of the steadily growing fleet of A330s and A340s efficiently operating on the airline's regional and intercontinental long haul network. In the spirit of true partnership, Airbus is delighted to share in Cathay Pacific's anniversary celebrations and the delivery of its 100th aircraft today."

Rolls-Royce Senior Vice President, Asia and Middle East, Mick Forey said: "We're proud to be sharing this significant milestone with one of our long-standing customers. Over the past 60 years, Cathay Pacific has successfully positioned itself as a leader in the aviation world and showed great foresight when it originally selected the Trent 700 for its A330s in 1990. This decision led to the launch of the Rolls-Royce Trent family of engines in 1995, which also heralded a new era for us. Rolls-Royce now powers more than three quarters of Cathay Pacific's current fleet and we look forward to working together to ensure continued success."

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Cathay closer to tap Chinese market after approval of Dragonair merger

HONG KONG, Aug 23, 2006 (AFP) - Hong Kong's flag carrier Cathay Pacific was closer to tapping the booming Chinese market after shareholders of four major players in the aviation sector approved it to take over its rival Dragonair.

The complex cross-sharing deal will make Dragonair a wholly-owned subsidiary of Cathay Pacific, and also see the Hong Kong flag carrier increase its stake in the mainland's state-run Air China.

However, the deal still requires the approval from the Chinese government, which is expected to be completed in the next three to four weeks, Cathay said.

"Once the deal is completed, Cathay Pacific can move forward with confidence in taking control of Dragonair, and at the same time strengthen its partnership with Air China and reinforce Hong Kong and Beijing as key aviation hubs in the Asia-Pacific," Cathay's chief executive Philip Chen said in a statement.

Air China chairman Li Jiaxiang said the deal would help "create a potent new force in the airline industry".

The approval of the deal -- granted on Tuesday by shareholders from Cathay, Air China, its unit China National Aviation Company (CNAC) and CITIC Pacific -- formalised Cathay's long-held ambition to gain greater access to the key Chinese market.

Cathay chairman Christopher Pratt said the airline should begin to see contributions generated from the merger from early 2007, although he cautioned the second half year will continue to be heavily influenced by the price of fuel despite the expected strong passenger and cargo growth.

Under the deal reached in June, which took more than two years to finalise, Cathay Pacific agreed to take over Dragonair for 8.22 billion dollars (1.05 billion US) while Air China and CNAC will get a combined 17.5 percent in Cathay. Air China plans to privatise CNAC.

Cathay Pacific in turn doubles its stake in Air China to 20 percent.

On completion, Swire Pacific -- which holds the largest stake in Cathay Pacific -- will hold 40 percent of Cathay and CITIC Pacific will hold 17.5 percent, compared with 46.30 percent and 25.40 percent previously.

According to the deal, Air China and Cathay Pacific will code-share on all routes and operate others under a profit share arrangement.

Cathay Pacific currently flies to only two destinations in China -- Beijing and Xiamen -- while Dragonair serves some 23 Chinese cities, including the lucrative Hong Kong-Shanghai route.

The new arrangements will come into effect on a date to be announced, following regulatory approval of the deal.

Analysts said the much anticipated restructuring opens up the prospect of cost savings and cooperation benefits in an industry struggling for profits against rising fuel and other costs, with booming China a prized market.

Aviation fuel accounted for the biggest increase in the airline's cost factors, up 30.4 percent to 8.7 billion dollars at the end of June.

Cathay hedged 25 percent of its fuel requirements in the first half year and will hedge 50 percent for the full year.

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Cathay to add US flights as competition mounts
Alman Loong
Hong Kong Standard
Thursday, August 31, 2006

Cathay Pacific Airways (0293) plans to increase its New York and San Francisco services as rivals target long- haul routes for expansion.

"We should add more flights to North America over the next few years in order to meet market demand," said chief executive Philip Chen Nan-lok, in Toulouse, France.

The carrier has earned HK$1.67 billion in the first six months - level with a year ago.

But passenger yield - the amount of revenue per passenger per kilometer flown - slipped 3 percent to 45.8 HK cents during the first half, amid fierce competition in long-haul economy class.

Demand for first-class and business- class seats, however, remained strong.

Chen said there is enormous growth potential in long-haul routes.

The carrier will not rule out adding new destinations but it declined to disclose details.

Low-cost carrier Oasis Hong Kong Airlines, the city's first budget, long- haul passenger carrier, said it has filed an application with the government to fly to six more destinations in addition to its debut route.

Oasis's maiden flight - non-stop services to London Gatwick Airport - is due for take off next month. The budget airline last month promised to offer HK$1,000 one-way ticket to London before taxes beginning in October.

Chen said Cathay has no room to cut ticket prices despite the fierce competition.

Currently, there are four airlines, including British Airways and Virgin Airlines, serving the London route, and prices have never been lower than they are now, said Chen.

Meanwhile, Chen said Cathay has no immediate plan to expand its fleet to meet strong demand. The company will take delivery of 18 Boeing 777 aircraft during 2008 to 2009, and this is seen as sufficient to meet demand.

Last December Cathay made commitments for 16 Boeing 777-300ER aircraft, with purchase rights for 20 more. Two of these purchase rights also had been exercised in the past few months.

A Credit Suisse report by analyst Peter Hilton in August said "one issue that might emerge in the medium term is relative fleet age."

Asian airlines tend to have low fleet ages. Strong growth enables more new planes to be purchased as old ones are retired, the report said.

Even Cathay, which tends to keep planes in service for about 20 years, has an estimated average fleet age of 7 to 8 years through this averaging down process. But if fuel prices stay at the current high levels for many years, the relative inefficiency of older planes may cause airlines to step up fleet renewal, the report said. Chen, however, emphasized that its fleet was not too old.

[Rachmaninov]

Cathay also declared that they won't buy the A380 at the moment, but will consider it as a possibility in future.

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History-making 100th Cathay Pacific aircraft comes face to face with the past
30 August 2006
Corporate Press Release









Cathay Pacific Airways welcomed its 100th aircraft, an Airbus A330-300, into the fleet this morning with a ceremony at Hong Kong International Airport to mark its arrival. On board the delivery flight from the Airbus facility in France were The Honourable Rafael Hui, Chief Secretary for Administration of the Hong Kong SAR Government, and Cathay Pacific Chief Executive Philip Chen.

To celebrate this landmark in Cathay Pacific’s continuous expansion, the airline arranged for the delivery party to be welcomed by cabin crew and airport staff in the vintage uniforms that are being worn in celebration of its 60th anniversary this year. Also present were a group of members of the Cathay Pacific “I Can Fly” programme that fosters an aviation interest and a deeper community spirit among young Hong Kong people.

A special moment at the ceremony was when the new Airbus A330-300, named “Progress Hong Kong”, came face to face with a DC3 aircraft that has been turned into a replica of “Niki”, Cathay Pacific’s second aircraft from 1946. The old aircraft has been lovingly restored in the airline’s second livery from the late 1940s and will soon go on display outside the company’s headquarters. Among those present at the ceremony was Captain Charles “Chic” Eather, 86, who piloted the original Niki soon after the airline was founded.

Cathay Pacific Chief Executive Philip Chen said: “This is a very proud moment for Cathay Pacific – and Hong Kong – as we welcome our 100th aircraft into the fleet. Having the ‘New Niki’ here together with our new delivery highlights how, from modest beginnings, we have grown into a world-class carrier. Our 100th aircraft is a symbol of both our recent expansion and also our future growth as we continue to work to develop Hong Kong as a leading international aviation hub.”

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By "Samuel Lam" from HKADB -
B-LAD CX 111 Landed Sydney International Airport @ 2 Sept 2006 6:32am

@ Gate 32

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Vintage aircraft brings the past alive at Cathay Pacific headquarters in airline's 60th anniversary year
4 September 2006
Corporate Press Release







Cathay Pacific Airways has a new symbol to mark six decades of serving Hong Kong in the shape of a classic DC3 aircraft that now stands proud outside its headquarters complex, Cathay Pacific City.

The DC3, an exact replica of the airline’s second aircraft, Niki, has been painted in the second Cathay Pacific livery from the late 1940s. Niki became the sister to the airline’s famous first aircraft, Betsy, soon after the airline commenced operations in 1946.

The original Betsy already resides in Hong Kong, taking pride of place in the Hong Kong Science Museum in Tsim Sha Tsui East, so the airline decided to produce a replica of the second member of its fleet for its 60th anniversary celebration this year. An old DC3 was purchased in the Philippines and teams from Cathay Pacific’s Engineering Department and maintenance provider HAECO worked to lovingly restore it in Cathay Pacific colours.

The “New Niki” was rolled out for the first time at the event to mark the arrival of Cathay Pacific’s 100th aircraft at Hong Kong International Airport on 30 August. It will go on permanent display outside the airline’s HQ, though it can be moved for use at special events.

Cathay Pacific Engineering Director Derek Cridland said: “We wanted to do something special to mark our 60th anniversary, and the replica of Niki certainly helps to bring the past alive. Having the aircraft standing outside our headquarters will remind people about the airline’s modest beginnings and how it has grown over 60 years to became a highly regarded international carrier. My sincere thanks go to the staff who worked hard to make this project happen.”

[oriental_horizon]

cool. some day, i will have to try CP, their air fares are usually more pricey than singapore airlines. but CP do go to destinations that singapore airlines don't.

[dicksonlai]

Cathay Pacific Releases August 2006 Traffic Figures

12 September 2006


Cathay Pacific Airways today released traffic figures for August that show passenger growth keeping ahead of the airline’s increase in capacity over the summer peak period.


Last month the airline carried a total of 1,488,507 passengers, up 5.2% on August 2005. The passenger load factor was up by 1.3 percentage points to 83.1% while capacity, measured in available seat kilometres, was up 3.9%. Figures for the year to date show passenger numbers up 9.4% and capacity up 9.3% over the corresponding period in 2005.


The amount of cargo carried by the airline in August was 94,987 tonnes, a 0.5% gain on the same month last year. Capacity, measured in available cargo/mail tonne kilometres, rose by 0.7% over August 2005. The cargo load factor for the month rose by 1.5 percentage points to 65.8%.


Cathay Pacific General Manager Revenue Management, Sales & Distribution Ian Shiu said: "The strong start to the peak season we saw in June and July continued through August with a high load factor and an expected strong demand in the back end as people took summer holidays. Interestingly, business traffic during this holiday period has been much more substantial than last year, giving a welcome boost to yield."


Cathay Pacific Director & General Manager Cargo Ron Mathison said: "Demand out of Hong Kong and China remained high in August, and our load factor held up despite the holiday season beginning in key markets such as Europe. We added an extra flight to Dallas and Atlanta at the beginning of the month, taking advantage of the strong demand we’ve seen on that route since it launched late last year."

[hkskyline]

Cathay pioneer, 86, still passionate about flying
11 September 2006
South China Morning Post

Former pilot Charles "Chic" Eather watched Hong Kong grow from the turbulence of the post-war era into one of the world's great metropolises from a unique perspective - above.

A self-assured man of 86, his brain as sharp as when he was required to dodge traffic, people and the occasional "honey cart" at the primitive Kai Tak airport before the Japanese upgraded it during the war. Mr Eather is the last surviving member of the collective that spawned Cathay Pacific.

The company flew him up last week from his retirement on Australia's Gold Coast for the arrival of its 100th aircraft because he flew the second one, a "beautiful" DC3.

Maybe the company also wanted his passion to rub off on some of the 2,000 pilots now employed by the airline, who are more immune to the risks he used to have to take.

"Aviation in those days was all risk. Every trip something would happen. It is so much more sophisticated today that you rarely hear of problems, and there are thousands of aircraft in the air," he said.

"It's safer than crossing the road in Wan Chai now, which is impossible."

But Mr Eather plays down the differences between the times. "It wasn't harder to fly the planes, just different. The best way of putting it is the pilots of today would have trouble flying the aircraft of the past but I would have a lot more trouble flying the aircraft of today, so everything is relative."

Mr Eather believes he was lucky to get a job after the war because there were thousands of unemployed pilots and only a handful of jobs. But his skills in aviation allowed him to soar above his peers and secure a job with a small Hong Kong operative.

In 1946, the company was called Roy Farrell Import-Export, later to be bought out by John Swire & Sons and eventually became Cathay Pacific.

Mr Eather's first cargo out of Sydney was not people, but belts, women's swimming costumes and tennis balls among other things, in a 36-hour odyssey to Hong Kong and then Shanghai, because there were no ships running just after the end of the war.

In Shanghai, he had to land and take off in ice and snow, something be had never done before.

But Sydney to Hong Kong and back again, twice a week, was what the keen young pilot was employed to do. For 128 hours in the air, he earned US$400 a month.

"But what they didn't know was that this was a job I was in love with and would have done for nothing," he said.

"The landings were all hairy. This was the airport before the upgrade and there was no real radio to speak of. We would have to take off in typhoons and fly the planes to Manila - six hours in those days - because there were no hangars for the aircraft."

The company grew as Hong Kong grew - quickly - and so passed Mr Eather's career.

Apart from a stint flying for the Union of Burma Airways during the civil war there in the early 1950s, he flew the rest of his career with Cathay Pacific, completing 25,000 flying hours.

The tears flowed as he came in to land at Hong Kong for one last time in 1975. "It was a life I loved and it was hard to say goodbye," he said.