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Old May 18th, 2008, 02:39 PM   #1101
hkskyline
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Cathay Pacific CEO Considers Cutting Air Routes On Fuel Costs
17 May 2008

HONG KONG (AP)--Cathay Pacific Airways Ltd. (CPCAY) may cut routes to cope with surging fuel prices, its chief executive said.

Tony Tyler said in an internal company newsletter obtained by The Associated Press Saturday that the Hong Kong-based airline has to focus on its most profitable markets, maximize use of fuel-efficient aircraft and cut routes altogether if necessary.

He didn't identify specific routes.

Cathay spokeswoman Carolyn Leung said the plan doesn't apply to its China-focused sister airline, Dragonair.

Cathay boasts more international coverage than Dragonair, offering flights to 120 destinations in 37 countries and territories.

While Cathay was earning better-than-expected revenue this year, "all this good work is being undone by the fuel crisis," Tyler said, noting that at the end of April, the airline was paying 60% more for fuel than last year.

Tyler said the airline is also constrained by the limited room for raising fuel surcharges and ticket prices.

"We need to be sensitive to the market's ability to absorb fare increases - after all we are still in very uncertain economic times," he said.

Leung said the airline is also in the process of replacing its fleet of seven B747-200 freighters with more fuel-efficient ones.

On Friday, light, sweet crude for June delivery settled up $2.17, or 1.8%, at a record close of $126.29 a barrel on the New York Mercantile Exchange. Earlier in the session, prices surged to $127.82 a barrel, also a new high.

Investment bank Goldman Sachs on Friday increased its oil price forecast for the second half of the year to $141 a barrel, up from $107 previously. Analysts at the bank argue that the oil market is undergoing a "structural repricing" that will continue to play out for some time to come.
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Old May 19th, 2008, 07:23 AM   #1102
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CATHAY PACIFIC AIRWAYS lounges drop in Quality Ranking as SKYTRAX report on a fall in Product and Service standards across the airline's home base airport facilities in Hong Kong


"What was once a Benchmark for other airlines to set their standards against when planning lounge facilities has now fallen in quality. Staff service is far from 5 Star any more, and even the lounge amenities are tired and poorly presented" according to Skytrax.


18th May 2008
London, UK


After many years at, or near the top of the global Airline Lounge league table, Cathay Pacific First and Business Class lounge facilities at Hong Kong Airport have received a downgrading in the latest SKYTRAX 2008 ranking review.

Commenting on the review, SKYTRAX point out that whilst these Cathay Pacific lounge facilities in Hong Kong rate at a good standard, they have failed to keep pace with the changes and innovations introduced by other airlines in recent years - and this is clear factor behind rating on some aspects falling from 5 Star to a 3 Star level.

The quality of staff service is another pointer as to where standards have not kept pace say Skytrax. "Whether looking at the First or Business Class sections of these lounges, we simply do not see anything that matches up to a true 5 Star service standard" reports Edward Plaisted, Skytrax CEO. "Functional is probably one of the most suitable descriptions at this time, and this does underline a slow and steady decline in Cathay Pacific lounge ranking."

Worn and tatty seating, overcrowded, messy carpets / tables and lack of attention to real cleanliness are a sure sign of standards on the slide say Skytrax.

According to Peter Miller of Skytrax ... "We look for something of a 'WOW' factor in today's 5 Star lounges, and there is really nothing across these Cathay Pacific facilities which we believe warrants that. Factor in a decline in staff service attention and general service attitude, and we have to conclude that other airlines have moved ahead of Cathay Pacific in this category at present."

Many will remember when the lounges were unveiled 10 years ago how Cathay Pacific sought to set a new benchmark in airline lounge amenities and staff service - and was able to achieve this then. It is however the pace of change and innovation by other airlines since which has served to undermine the Cathay Pacific ranking.

As pointed out by Edward Plaisted, the 5 Star rating "is not about having the biggest or most equipped lounge .... we are concerned about the combined package on offer. Clean, comfortable facilities and amenities that combine with a truly special level of staff service are the core ingredients behind the 5 Star status - and on several counts we find that these CX lounges are not meeting the mark".
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Old May 19th, 2008, 07:25 AM   #1103
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Cathay Pacific mulls route cuts on high fuel: paper
Sat May 17, 1:38 AM ET

HONG KONG (Reuters) - Cathay Pacific Airway Ltd (0293.HK), Hong Kong's dominant airline, is considering cutting its money-losing routes amid soaring fuel prices, South China Morning Post said on Saturday, citing the airline's chief executive as warning in an internal newsletter.

"We will have to make sure that our fleet is flying the most suitable and economic routes for each of our aircraft types," the newspaper quoted Chief Executive Tony Tyler as saying in CX World.

"This will mean to allocate capacity to our strongest and most profitable markets, and to reduce or eliminate routes that are draining cash," Tyler said.

Cathay Pacific officials were not immediately available for comment.

The airline was studying profit dynamics of all destinations and no decision would be made until August on any route reduction, the newspaper cited the carrier's Chief Operating Officer John Slosar as saying.

Cathay had to pay about 60 percent more in average jet fuel cost per tonne in the first 4 months of 2008, against the level last year, Tyler said, adding that fuel costs account for 30 percent of the carrier's operating costs.

Shares of Cathay, haunted by concern over rising operating costs on soaring oil prices, have fallen 19 percent so far this year, underperforming an 8 percent drop in the broader Hang Seng Index (.HSI).

Oil prices surged to a record high near $128 a barrel on Friday as a bullish price forecast from investment bank Goldman Sachs drowned out an offer of more supply from OPEC kingpin Saudi Arabia.
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Old May 19th, 2008, 09:21 AM   #1104
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Cathay Pacific is one of the few profitable carriers in East Asia. I am not surprise because of surging oil prices, they will cut routes for less busy or unprofitable routes. But it is only temporarily.

It would be nice if Cathay Pacific had 777 flying to Oceania or the A380. Does anyone know if they did order any A380?
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Old May 19th, 2008, 01:18 PM   #1105
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No A380s on order. CX doesn't want to be a guinea pig and be stuck with the delays other purchasers had to go through.
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Old May 19th, 2008, 01:43 PM   #1106
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Quote:
Originally Posted by hkskyline View Post
No A380s on order. CX doesn't want to be a guinea pig and be stuck with the delays other purchasers had to go through.
I just love Cathay holding on to its principle.
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Old May 19th, 2008, 01:48 PM   #1107
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Quote:
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I just love Cathay holding on to its principle.
That's right, or else will suffer several years of delays like what the other airlines are going through, which is quite disastrous to fleet planning.
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Old May 19th, 2008, 02:09 PM   #1108
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擬 建 第 二 座 客 運 大 樓 及 輕 鐵
100 億 工 程   機 場 解 決 塞 人 塞 機


【 記 者 呂 焯 均 報 道 】 旅 客 在 赤 角 機 場 都 嘗 過 「 三 害 」 , 害 人 呆 坐 機 艙 等 升 空 ; 在 上 空 盤 旋 等 降 落 ; 降 落 後 呆 等 停 泊 位 下 機 。 機 場 管 理 局 正 趕 緊 籌 劃 十 年 發 展 計 劃 , 效 法 紐 約 及 倫 敦 等 國 際 機 場 , 在 赤 角 建 造 第 二 座 客 運 大 樓 , 並 建 地 底 輕 便 鐵 路 接 駁 現 有 客 運 大 樓 , 又 計 劃 興 建 升 空 前 的 飛 機 候 航 區 , 這 項 耗 資 百 億 元 的 新 工 程 將 加 大 旅 客 和 飛 機 容 量 , 又 加 速 航 機 升 降 , 減 少 人 機 擠 塞 , 到 2015 年 可 令 跑 道 的 升 降 能 力 提 升 逾 兩 成 。
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2015 升 降 能 力 增 兩 成
機 管 局 除 研 究 興 建 第 三 條 跑 道 以 應 付 發 展 需 要 , 早 前 亦 聘 請 了 英 國 航 空 組 織 研 究 以 改 進 航 空 交 通 管 制 的 方 法 , 要 在 2015 年 前 提 升 機 場 營 運 力 兩 成 , 每 小 時 處 理 航 機 升 降 達 到 68 架 次 。 研 究 結 果 指 出 , 一 方 面 要 改 善 航 空 控 制 系 統 , 以 及 與 鄰 近 澳 門 、 深 圳 、 珠 海 、 廣 州 四 個 機 場 加 強 聯 繫 , 另 一 方 面 現 有 客 運 設 施 絕 對 不 敷 應 用 , 機 場 停 機 坪 也 不 足 , 以 致 等 候 升 空 的 航 班 出 現 大 擠 塞 。 機 管 局 正 根 據 研 究 結 果 與 政 府 商 討 改 善 計 劃 。
據 悉 , 機 管 局 計 劃 在 現 有 機 場 島 大 興 土 木 , 要 建 一 座 全 新 的 獨 立 客 運 大 樓 , 以 及 闢 建 航 機 升 空 前 的 候 航 區 。



兩 跑 道 中 間 建 候 航 區
現 已 初 步 選 址 在 現 時 兩 條 跑 道 中 間 的 未 開 發 土 地 闢 建 候 航 區 , 為 尚 未 接 到 起 飛 指 令 、 但 已 經 可 以 離 開 客 運 大 樓 的 出 發 航 機 提 供 等 候 起 飛 的 地 方 。 因 此 , 客 運 大 樓 可 騰 出 停 機 位 給 剛 抵 的 航 機 停 靠 , 讓 機 上 乘 客 可 盡 快 下 機 。
機 管 局 同 時 計 劃 另 建 輕 便 鐵 路 接 駁 新 舊 客 運 大 樓 , 這 是 應 付 機 場 中 短 期 的 發 展 需 要 。 將 來 若 拍 板 決 定 興 建 第 三 條 跑 道 , 還 需 一 併 研 究 建 造 第 三 座 新 客 運 大 樓 。
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Old May 20th, 2008, 08:09 AM   #1109
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Quote:
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No A380s on order. CX doesn't want to be a guinea pig and be stuck with the delays other purchasers had to go through.
I'd love to see CX order the 747-8i and the freighter variant.
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Old May 20th, 2008, 10:20 AM   #1110
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i thought CX already ordered some 747-8F
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Old May 21st, 2008, 03:47 AM   #1111
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i thought CX already ordered some 747-8F
Yes they have orders for 10 747-8Fs and an option for 14 more, which would make them the largest operator of the 747-8F in the world.
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Old May 28th, 2008, 03:51 PM   #1112
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Arrival of first boeing 747-400ERF heralds new era for Cathay Pacific’s freighter operations

Arrival of first boeing 747-400ERF heralds new era for Cathay Pacific’s freighter operations
27 May 2008

Cathay Pacific Airways’ cargo business has entered a new era following the arrival of the airline’s first Boeing 747-400ERF “Extended Range Freighter” at the weekend. The new delivery marks the beginning of a significant enhancement of the freighter fleet, with the addition of newer, more efficient aircraft coupled with the retirement of the airline’s older Boeing 747-200 “Classic” freighters.

The new Boeing 747-400ERF - the first of six to be delivered by next year - was handed over to Cathay Pacific on Thursday in Seattle. The aircraft, powered by Pratt & Whitney engines, has a higher maximum takeoff weight than existing Boeing 747-400 freighters in the fleet, achieved by the use of lighter materials. This greater payload capability can be traded for extended range, while the highly efficient engines help to reduce fuel burn.

Cathay Pacific also has 10 Boeing 747-8F freighters on firm order for delivery between 2009 and 2012. Like the Boeing 747-400ERFs, these “next generation” freighters are highly fuel efficient, consuming 22% less fuel per revenue payload tonne than a “Classic” freighter and having a significantly reduced environmental impact.

Director & General Manager Cargo Ron Mathison said: “With fuel prices reaching historical highs, it is appropriate that we are equipping our fleet with new, far more efficient freighters that will have a much-reduced environmental impact. The introduction of the new ‘Extended Range Freighters’ will enable to us to move greater amounts of freight in a more efficient way, adding a further boost to Hong Kong’s position as the world’s leading international airfreight hub.”

Cathay Pacific currently operates a fleet of 19 freighters: one Boeing 747-400ERF, six Boeing 747-400Fs, six Boeing 747-400BCFs and six Boeing 747-200Fs. The airline’s freighter network covers 34 destinations around the world, with two more – Houston and Miami in the United States – being added from September.



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Old May 29th, 2008, 01:36 PM   #1113
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Freighter Livery

I though Cathay was moving to a metalic, bare-metal, finish for its freighters?
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Old May 30th, 2008, 11:20 AM   #1114
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No more paper tickets from June 1st 2008!

Cathay Pacific Press Release:
Cathay Pacific moves to full electronic ticketing from 1 June
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Old May 30th, 2008, 02:49 PM   #1115
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What principles does Cathay have?

On the retiring of Boeing 747s by 2013, they basically put the Airbus A380 in its current state back up on option.
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Old May 31st, 2008, 01:56 PM   #1116
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Quote:
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What principles does Cathay have?

On the retiring of Boeing 747s by 2013, they basically put the Airbus A380 in its current state back up on option.
Where did you get that information?

According to the articles posted on this thread, CX is just retiring old 747-200s out by the time the last 747-8Fs arrive. There's no mention of retiring 747's by 2013?
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Old June 2nd, 2008, 08:28 AM   #1117
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CX will be retiring all its 747-400s by 2013. There is an existing new article about this but can't find it right at this very moment. I hope CX orders 747-8I as replacement.
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Old June 2nd, 2008, 08:32 AM   #1118
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Quote:
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What principles does Cathay have?

On the retiring of Boeing 747s by 2013, they basically put the Airbus A380 in its current state back up on option.
When Air Transport World awarded Cathay the "Airline of the Year" award for 2006, it had an article about CX and its history. It was mentioned that CX doesn't want to operate new but unproven aircraft (like the A380). It was also notably stated there that CX is/was a master of recycling and buying second-hand aircraft (the Tristars from Eastern, and 744s from SQ) to reduce costs, as CX is not subsidized by the Hong Kong government.
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Old June 2nd, 2008, 09:09 AM   #1119
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It's 2008 now and the A380 will approach its first anniversary for commercial operations in a few months, meaning alot of time to prove itself.

I think its not a matter of if, but when CX will get its A380. Its competitors intend to use it on routes to Hong Kong and beyond.

But personally, I wish CX gets both the B748i and A380.
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Old June 2nd, 2008, 11:34 AM   #1120
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Quote:
Originally Posted by a s i a n a View Post
CX will be retiring all its 747-400s by 2013. There is an existing new article about this but can't find it right at this very moment. I hope CX orders 747-8I as replacement.
Ahh, it'd be great if you could find the article. 5 years is really a short time, will CX replace the 744s with 777s or 340s?

It doesn't seem feasible that CX can order 748s or 380s and have them delivered by 2013 to replace all of its 744s. (but of course, I know very little about how airlines operate, maybe it's doable?)

Edit: well the CX site says it'll be replacing the bulk of its long haul fleet with 777s. I find it strange it would go through the trouble of retrofitting the 747s with the new seating package just for 5 years of service.
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