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Old September 13th, 2007, 07:37 PM   #921
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Cathay Pacific August Passengers Up 4.9% On Yr To 2.12 Mln
13 September 2007

HONG KONG (Dow Jones)-- Cathay Pacific Airways Ltd. (0293.HK) said Thursday it carried 4.9% more passengers in August than it did in the same month last year, boosted by strong demand, particularly for first and business class seats.

The Hong Kong-based carrier and its unit, Hong Kong Dragon Airlines Ltd., carried 2.12 million passengers during the month. Cargo traffic rose 12% from a year earlier to 142,597 metric tons.

In the first eight months of this year, Cathay Pacific and Dragonair carried 15.18 million passengers, up 2% from a year earlier. Cargo tonnage rose 1.7% to 1.03 million metric tons. It didn't provide year-earlier figures.
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Old September 14th, 2007, 03:51 AM   #922
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Quote:
Originally Posted by ChinaboyUSA View Post
Why the Airbus 380 doesn't start its first commercial flight from Hong Kong to Sydney instead of S'pore to Sydney?
Huh? Why in the world would SIA fly from HKG ?!
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Old September 14th, 2007, 03:52 AM   #923
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Anyone heard rumours about Cathay going double daily to YYZ and negotiating YYC too?
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Old September 14th, 2007, 03:11 PM   #924
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Anyone heard rumours about Cathay going double daily to YYZ and negotiating YYC too?
Canada's airport fees too high: Cathay
8 November 2006
Calgary Herald

Sky-high airport fees are discouraging foreign carriers from flying to Canada and could force others to scrap routes entirely in favour of destinations in the United States, an executive with Cathay Pacific Airways warned Tuesday.

Cathay Pacific -- Hong Kong's flagship airline -- wants to add a third daily flight between its Asian hub and Vancouver -- or possibly even launch service to Calgary.

But it's difficult to justify expanding in Canada, argues vice-president Philippe Lacamp, because of the Byzantine rent structure Ottawa has imposed on the nation's airports.

"There is a reason we fly three times a day into Los Angeles and not Vancouver," he said. "Canadian airports are generally more expensive than in the U.S. and Canada is going to lose out economically because of it."

The federal government collects rent from Canada's airports, spun off to not-for-profit authorities in the early 1990s. Much of that cost is paid by airlines in the form of landing fees and terminal charges for the use of gates and check-in counters.

But Lacamp, who oversees Cathay Pacific's operations in Canada, told an audience at the Calgary Chamber of Commerce that Ottawa's rent structure is archaic, and unless it is overhauled, runs the risk of alienating foreign carriers.

It's a message he delivered to the House of Commons Standing Committee on Transport last year.

"I'm not saying we want to come in for free -- absolutely not -- but we want to pay only for what we use," he said in an interview.

"It's a business concern -- we're not going to fly somewhere that doesn't make us money."

Much of Lacamp's ire is directed at Toronto's Pearson International Airport, bitterly referred to by some critics as the "Taj Mahal" after an extravagant renovation project that included millions of dollars in artwork alone. Today, it is the single-most expensive airport in the world to fly into and rising costs have led some airlines, including Israeli carrier El Al, to scale back its service to the city.

Airports have long lobbied the government to eliminate rent obligations, arguing it puts them at a disadvantage when it comes to wooing international carries. In the case of Calgary International Airport, officials say

Ottawa has collected more than twice the value of the facility since it was spun off 15 years ago.

"We're looking at numbers in excess of $1 billion over the life of the lease we've got," said Julien DeSchutter, the airport's vice-president of marketing. "We consider it a lease in perpetuity."

DeSchutter says the airport has tried to keep the costs passed on to airlines at a minimum, and wherever possible consults carriers to gauge the kinds of services they are interested in paying for.

Still, he fears that without rent reform, foreign companies like Cathay Pacific, British Airways or Japan Airlines will see little economic incentive to do business in Canada if prices to use airports continue to outpace those of other countries.

"Let's be realistic. If we're paying $20 million a year in rent, that's

$20 million we've got to find somewhere and generally speaking the carriers have to pay for it," said DeSchutter.

"Anything that increases your costs definitely does not help (in attracting airlines to Calgary). That's a big part of the reason this rent has to disappear."
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Old September 14th, 2007, 03:26 PM   #925
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Quote:
Originally Posted by hkskyline View Post
Canada's airport fees too high: Cathay
8 November 2006
Calgary Herald

Sky-high airport fees are discouraging foreign carriers from flying to Canada and could force others to scrap routes entirely in favour of destinations in the United States, an executive with Cathay Pacific Airways warned Tuesday.

Cathay Pacific -- Hong Kong's flagship airline -- wants to add a third daily flight between its Asian hub and Vancouver -- or possibly even launch service to Calgary.

But it's difficult to justify expanding in Canada, argues vice-president Philippe Lacamp, because of the Byzantine rent structure Ottawa has imposed on the nation's airports.

"There is a reason we fly three times a day into Los Angeles and not Vancouver," he said. "Canadian airports are generally more expensive than in the U.S. and Canada is going to lose out economically because of it."

The federal government collects rent from Canada's airports, spun off to not-for-profit authorities in the early 1990s. Much of that cost is paid by airlines in the form of landing fees and terminal charges for the use of gates and check-in counters.

But Lacamp, who oversees Cathay Pacific's operations in Canada, told an audience at the Calgary Chamber of Commerce that Ottawa's rent structure is archaic, and unless it is overhauled, runs the risk of alienating foreign carriers.

It's a message he delivered to the House of Commons Standing Committee on Transport last year.

"I'm not saying we want to come in for free -- absolutely not -- but we want to pay only for what we use," he said in an interview.

"It's a business concern -- we're not going to fly somewhere that doesn't make us money."

Much of Lacamp's ire is directed at Toronto's Pearson International Airport, bitterly referred to by some critics as the "Taj Mahal" after an extravagant renovation project that included millions of dollars in artwork alone. Today, it is the single-most expensive airport in the world to fly into and rising costs have led some airlines, including Israeli carrier El Al, to scale back its service to the city.

Airports have long lobbied the government to eliminate rent obligations, arguing it puts them at a disadvantage when it comes to wooing international carries. In the case of Calgary International Airport, officials say

Ottawa has collected more than twice the value of the facility since it was spun off 15 years ago.

"We're looking at numbers in excess of $1 billion over the life of the lease we've got," said Julien DeSchutter, the airport's vice-president of marketing. "We consider it a lease in perpetuity."

DeSchutter says the airport has tried to keep the costs passed on to airlines at a minimum, and wherever possible consults carriers to gauge the kinds of services they are interested in paying for.

Still, he fears that without rent reform, foreign companies like Cathay Pacific, British Airways or Japan Airlines will see little economic incentive to do business in Canada if prices to use airports continue to outpace those of other countries.

"Let's be realistic. If we're paying $20 million a year in rent, that's

$20 million we've got to find somewhere and generally speaking the carriers have to pay for it," said DeSchutter.

"Anything that increases your costs definitely does not help (in attracting airlines to Calgary). That's a big part of the reason this rent has to disappear."
Yet, they're still going double daily to YYZ this winter
I think EVERYONE except the Feds agree on the lower rent for YYZ issue.
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Old September 14th, 2007, 03:32 PM   #926
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Quote:
Originally Posted by yyzhyd View Post
Yet, they're still going double daily to YYZ this winter
I think EVERYONE except the Feds agree on the lower rent for YYZ issue.
Expansion is not on the plate until the new 777 can be deployed on the JFK route, then the A340 can likely move to a Canadian route.
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Old September 14th, 2007, 03:54 PM   #927
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Quote:
Originally Posted by hkskyline View Post
Expansion is not on the plate until the new 777 can be deployed on the JFK route, then the A340 can likely move to a Canadian route.
Exactly... and their new 77Ws are already uploaded into schedules for JFK.
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Old September 14th, 2007, 07:39 PM   #928
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The first 777-300ER should be delivered to HK from Seattle on the 23rd this month. I guess it'll be in service very soon even before the JFK's flight.

How many 777-300ER has CX ordered? Anyone knows?
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Old September 14th, 2007, 08:34 PM   #929
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Cathay currently has 23 B77Ws on order from Boeing.

12 ordered in 2005
+5 leased from ILFC
+2 ordered in 2006
+5 ordered in 2007
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Old September 14th, 2007, 09:05 PM   #930
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Quote:
Originally Posted by yyzhyd View Post
Cathay currently has 23 B77Ws on order from Boeing.

12 ordered in 2005
+5 leased from ILFC
+2 ordered in 2006
+5 ordered in 2007
wow... the whole order is about one-fifth of the existing fleet in CX.
CX is really expanding rapidly in the next few years.
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Old September 15th, 2007, 07:43 AM   #931
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Quote:
Originally Posted by EricIsHim View Post
wow... the whole order is about one-fifth of the existing fleet in CX.
CX is really expanding rapidly in the next few years.
and that's not including options that CX haven't executed yet.
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Old September 15th, 2007, 07:44 AM   #932
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Quote:
Originally Posted by EricIsHim View Post
The first 777-300ER should be delivered to HK from Seattle on the 23rd this month. I guess it'll be in service very soon even before the JFK's flight.

How many 777-300ER has CX ordered? Anyone knows?
more like the end of the month.
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Old September 15th, 2007, 02:54 PM   #933
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Quote:
Originally Posted by vincent View Post
and that's not including options that CX haven't executed yet.
what options?
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Old September 19th, 2007, 04:53 AM   #934
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Quote:
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what options?
airplane order options. There are four "level" for ordering airplanes, each with different terms and conditions.
1. Firm Order
2. Option
3. Purchase rights
4. MOU
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Old September 19th, 2007, 01:32 PM   #935
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Cathay Pacific suspends Taipei Services until 1930 today
18 September 2007
Press Release

Cathay Pacific Airways announced that all its flights to and from Taipei would be suspended from noon until 1930 (HKT) today due to the approach of Typhoon Wipha, which is expected to move closest to Taipei this afternoon. Flights departing Taipei for Hong Kong are also affected.

Passengers who are already booked on flights to Taipei this afternoon are advised to call the following hotline or check the airline’s website, www.cathaypacific.com for the latest arrival and departure information:

Chinese language: 2747 8888
English language: 2747 8999

Cathay Pacific regrets any inconvenience caused to passengers and will do what we can to assist those affected by the flight disruptions.
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Old September 21st, 2007, 07:17 AM   #936
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Old September 22nd, 2007, 09:31 AM   #937
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Cathay soars 10pc, shares suspended amid rumors
Hong Kong Standard
Saturday, September 22, 2007

Shares of Cathay Pacific Airways (0293) were suspended from trading on Friday afternoon amid rampant rumors of industry consolidation.

Hong Kong's de facto flag carrier requested the suspension pending announcement of a "proposed transaction which constitutes price-sensitive information."

Airline stocks have set record highs this week amid speculation that Beijing- based Air China (0753) - 17.5 percent owned by Cathay - will merge with Shanghai-based China Eastern Airlines (0670).

But shares of Air China, China Eastern and Guangzhou-based China Southern Airlines (1055) all continued trading on Friday - suggesting that Cathay's suspension may not be related to any potential deal involving those carriers.

China Eastern shares surged 12.4 percent to close at a record HK$9.72, while China Southern gained 7.56 percent to HK$13.90.

Air China shares rose 1.54 percent to HK$11.84.

Cathay shares jumped 10.7 percent to HK$22.70 prior to their afternoon suspension.

Earlier this month, China Eastern said it had agreed to sell a combined 24 percent stake to Singapore Airlines and Temasek Holdings for HK$7.16 billion.

Even though Cathay's suspension is not believed to be related to the China Eastern deal, an analyst thinks something is going on in the market to stop the transaction.

"Air China may take aggressive action to derail China Eastern's stake sale to Singapore Airlines before the deal obtains [shareholders'] approval in November," Citigroup analyst Ally Ma wrote in a report.

Air China's parent, China National Aviation Corp, has boosted its stake in China Eastern to 11 percent of its Hshares, and could unite other China Eastern minority shareholders to block the transaction involving the Singaporeans, Ma said.
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Old September 23rd, 2007, 07:15 AM   #938
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Sunday September 23, 1:54 AM
Cathay Pacific to try and block Singapore Airlines: report

HONG KONG (AFP) - Hong Kong carrier Cathay Pacific will launch a four-billion-dollar attempt to block Singapore Airlines' bid to gain a foothold in the booming Chinese aviation market, reports said Saturday.

Citing unnamed sources, Hong Kong's South China Morning Post said Cathay Pacific would seek to buy a significant stake in China Eastern Airlines. That stake would be worth four billion dollars, Britain's Daily Telegraph said.

The shareholding would then be used to try and scupper the Singaporean carrier's own plan to acquire a key stake in China Eastern, the Post said.

Cathay would use it alliance with Air China, China's largest airline which holds 11 percent of China Eastern, to block Singapore Airlines' plan at a December shareholder meeting.

Singapore Airlines and the city-state's Temasek Holdings said earlier this month that they planned to buy a combined 24 percent stake in struggling China Eastern for 923 million US dollars.

Analysts have said the deal would offer Singapore Airlines, among the world's most profitable carriers, a foothold in the Chinese aviation market.

The deal requires the support of two-thirds of minority shareholders, the Post said.

China Eastern was based in Shanghai, which could have a growing role as an international aviation hub, and flew between Hong Kong and Shanghai, it added.

Cathay's proposal was still be worked on, the Daily Telegraph said citing unnamed sources.

"There are still a lot of moving parts," one person close to the situation was quoted as saying.

Cathay Pacific is expected to make a statement as early as Monday to the Hong Kong stock exchange after its shares were suspended Friday pending a price-sensitive proposed transaction.

The airline's stock hit an all-time high of 23.05 Hong Kong dollars (3.0 US dollars) on Friday. China Eastern's shares closed up 12.4 percent.
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Old September 24th, 2007, 02:58 PM   #939
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Reports: Cathay, Air China to team up on stake in China Eastern
24 September 2007

SHANGHAI, China (AP) - Trade in Air China's Hong Kong-listed shares was suspended Monday amid reports the Chinese flagship carrier and partner Cathay Pacific Airways plan to try to block a bid by Singapore Airlines to take a stake in China Eastern Airlines.

A spokeswoman for Cathay Pacific, Carolyn Leung, said Monday that the airline planned an announcement later in the day.

"I've seen this in the media. But I have no comment and no information on this right now," said Luo Zhuping, secretary of the board for Shanghai-based China Eastern Airlines, the nation's third-biggest airline.

China Eastern's Hong Kong-listed shares surged by as much as 8 percent early Monday. By late afternoon, though, they were down 10.5 percent from Friday at 8.70 Hong Kong dollars. China Eastern's Shanghai-listed shares fell 3.8 percent Monday to 21.94 Chinese yuan.

Cathay Pacific shares were suspended from trading in Hong Kong Friday afternoon.

"With Air China also suspended trading today, it looks very much like Cathay and Air China are joining hands to buyout China Eastern," said Martin Wang, an analyst at Guotai Junan Securities Ltd.

Like other state-owned airlines, China Eastern has suffered from soaring jet fuel prices and intensifying competition. But it is the dominant carrier in China's biggest city, Shanghai, and both Cathay and Singapore have been maneuvering to tap into China's double-digit economic growth.

China Eastern reported net losses in 2005 and 2006 and in the first half of this year, according to international accounting standards.

Reports in Chinese and overseas media, citing unnamed airline sources, said Cathay and Air China were seeking to scupper a deal between China Eastern and Singapore Airlines. The deal, announced earlier this month, would give the Singapore carrier and Singaporean government investment arm Temasek a combined 24 percent stake in China Eastern.

Cathay and Air China would presumably offer a higher premium for China Eastern's shares. Air China affiliate China National Aviation Corp. already holds an 11 percent stake in China Eastern.

It would be unusual for the rival airlines to engage in such market-based dueling -- both are state-controlled and the Singapore-China Eastern alliance had obvious government support.

The plan by Singapore Airlines to take a 15.7 percent stake in China Eastern, and for Temasek to buy another 8.3 percent, was approved by the State Council, China's Cabinet. The plan involves a share offering of HK$7.2 billion (US$920 million; €655 million).

The plan was approved by the Shanghai carrier's board but requires the support of two-thirds of minority shareholders at a shareholder meeting in December.

Cathay Pacific and Air China own 17.5 percent of each other's shares. Britain's Daily Telegraph reported that Cathay would pay about US$4 billion (€2.9 billion) for a China Eastern stake.

"That amount is more than enough to buy all H-shares of China Eastern, so it's not likely that Cathay is buying a small portion, it should be planning a buyout to block the Singapore Airlines' bid for China Eastern," Wang said, referring to the Telegraph report. H-shares are Hong Kong-listed shares of China-based companies.

"We don't comment on speculation," Singapore Airlines spokesman Stephen Forshaw said, when asked about Monday's media reports.

Shares in Singapore Airlines were down 1.1 percent late afternoon on the Singapore Exchange at 18.50 Singapore dollars.

------

Associated Press writers Dikky Sinn in Hong Kong and Gillian Wong in Singapore contributed to this report.
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Old September 24th, 2007, 03:00 PM   #940
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September 24, 2007

China Eastern the target in airline dogfight over ‘the battle for Shanghai’

Leo Lewis, Asia Business Correspondent

The Hong Kong-based Cathay Pacific and its ally Air China are expected to make a combined offer today for a significant stake in China Eastern Airlines as part of what airline industry veterans are calling “the battle for Shanghai”.

The Cathay bid will be made as a blocking gambit against a £500 million stake-building exercise launched this month by Singapore Airlines, Cathay’s regional rival.

Cathay’s move, which will build on Air China’s existing 11 per cent stake in China Eastern, is expected to trigger a bidding war for effective control of the routes owned by China’s third-largest carrier.

Sources close to Temasek, the Singaporean sovereign wealth fund that is helping Singapore Airlines with its bid for a 24 per cent stake, told The Times that it would “inevitably” respond to any blocking move by Cathay.

Cathay and Singapore are desperate to expand their operations in China – the world’s fastest-growing aviation market – and see China Eastern, with its dominance of the Shanghai hub, as vital to that.

Since Singapore announced its intention to build a stake in China Eastern three weeks ago, analysts at Citigroup have flagged the strong possibility Air China would respond robustly.

A source close to the Swire group, which owns 40 per cent of Cathay, also told The Times: “It has been clear for some time that Cathay was not going to sit around while an asset like China Eastern was in play.”

Singapore’s purchase has yet to receive the approval of shareholders at a meeting in December. It is understood that Air China and Cathay may be preparing to thwart that approval by organising a two-thirds majority vote preventing the stake-sale to Singapore.

The battle is expected to focus on Shanghai. Cathay and its Dragonair subsidiary already control half of the 32 daily flights between Hong Kong and Shanghai; China Eastern’s 13 would, via code-sharing deals, give Cathay near-monopoly status on the route.

Singapore Airlines, meanwhile, could use a large stake in China Eastern to turn Shanghai into a hub connecting its international network with a domestic Chinese one.

Despite its strategic importance in the region, China Eastern has been criticised by investors as one of the few airlines that have managed to make a loss despite the booming growth of Chinese air travel. In 2006, it plunged more than 3.3 billion yuan (£218 million) into the red.

Singapore’s stake-building bid was widely praised by analysts, who saw it as an opportunity for the airline’s well-respected management to shake up a failing one at China Eastern. Others questioned whether a 24 per cent stake would allow Singapore a sufficient degree of management control to achieve that.

It also remains unclear how far Cathay can go with its bid. Chinese law prevents an “overseas” company owning more than 50 per cent in a Chinese carrier. Singapore and Temasek’s ambitions are to build a 24 per cent stake, but Air China and Cathay’s plans may be to build a holding around twice that size.

A Cathay spokesperson said that “we’ve never claimed to be a mainland carrier”, raising what analysts said was a strong possibility it, too, would fall under the ban on overseas carriers owning controlling stakes in Chinese airlines.

Singapore’s focus on Asia is expected to lead to the group shedding its 49 per cent stake in Virgin Atlantic.
----------------
Source: The Times
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