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

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Cathay Pacific releases November 2006 traffic figures
12 December 2006
Press Release

Cathay Pacific Airways today released traffic figures for November 2006 that show a continued growth in both passenger and cargo traffic, the latter helped by the introduction of a new freighter service to Beijing.

Last month the airline carried a total of 1,374,726 passengers, up 7.1% on the same month in 2005. The passenger load factor was 78.7%, up 2.4 percentage points year on year, while capacity, measured in available seat kilometres (ASKs), rose by 4.4%. Figures for the year to date show the number of passengers carried up 8.6% over last year, ahead of an 8.1% rise in ASKs.

The airline carried 109,413 tonnes of cargo in November, a 9.3% rise on the same month last year. Capacity, measured in available cargo/mail tonne kilometres, rose by 7.8% in the same period. The month's cargo load factor was also up, by 1.8 percentage points, to 70.5%. The load factor for the year to date is 66.8%

Cathay Pacific General Manager Revenue Management, Sales & Distribution Ian Shiu said: “There is usually something of a passenger-traffic lull in November, but this year we were pleased by the high load factor and continued solid demand for travel. Business in the front-end continues to surpass expectations, and the situation overall is looking healthy as we move into the holiday peak.”

Cathay Pacific Director & General Manager Cargo Ron Mathison said: "Demand out of Hong Kong and the Mainland held up well and our loads on key long-haul routes to Europe and the United States remained very high. The introduction of our new twice-weekly freighter service to Beijing is helping us tap into the growing market in Northern China, while five extra freighter flights a week to Shanghai from 1 December will give our Mainland business a further boost.”

http://www.cathaypacific.com/cpa/en_...0011d21c39____

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Cathay Pacific to introduce three additional flights
14 December 2006
The Press Trust of India Limited

New Delhi, Dec 14 (PTI) Hongkong-based Cathay Pacific Airways today said it would augment its services by adding three more flights in the Delhi-Hong Kong, Mumbai-Hong Kong routes.

The three extra flights will operate from December 15 to January 31 period, the company said in a release.

Currently, the airline operates four flights each on these sectors, it said.

"With this development, we will be operating flights on these route on every day of the week, offering flyers variety and flexibility," Cathay Pacific Country Manager India Rupert Bray said.

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Air China, Cathay Pacific to set up cargo JV in H1 at earliest - report
9 January 2007

SHANGHAI (XFN-ASIA) - Air China Ltd (SHA 601111; HK 0753) and Cathay Pacific Airways Ltd will establish a 50-50 cargo joint venture in Shanghai in the first half of 2007 at the earliest, the China Securities Journal reported, citing an unidentified Air China official.

'The two parties are preparing details of the cargo joint venture, and substantial progress will be made by the first half or slightly after that,' the source was quoted as saying.

Air China's net profit in 2006 is expected to come in at record levels due to lower fuel costs and the rising yuan, the Shanghai Securities News reported, citing Zheng Baoan, Air China's board secretary, discussing the recent strong performance of Air China.

Air China's A-shares rose over 36 pct in the last five trading days.

'Exchange gains are expected to reach 800 mln yuan for 2006,' Zheng added.

(1 usd = 7.80 yuan)

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Cathay Pacific releases December 2006 traffic figures
10 January 2007
Press Release
http://www.cathaypacific.com/cpa/en_...0010d21c39____

Cathay Pacific Airways today released traffic figures for December 2006 that show continued growth in the number of passengers and amount of cargo carried. Figures for 2006 as a whole show both passenger growth and cargo growth keeping above the airline's rise in capacity.

Last month the airline carried a total of 1,495,023 passengers, up 5.9% on the same month in 2005. The passenger load factor was 81.2%, up one percentage point year on year, while capacity, measured in available seat kilometres (ASKs), rose by 3.3%. The number of passengers carried in the whole of 2006 was 16,727,757 - up 8.4% on the previous year and ahead of a cumulative passenger capacity increase for the year of 7.7%. The load factor for the year was 79.9%

In December Cathay Pacific carried 108,842 tonnes of cargo, a rise of 3.7% on the same month in 2005 and above a 3.6% gain in capacity, measured in available cargo/mail tonne kilometres. There was no growth in the cargo load factor during the month. For 2006 as a whole the load factor was up 1.3 points to 68.3%, while the amount of freight carried rose by 7.2% to 1,198,703 tonnes. Capacity growth lagged behind at 5.2%.

Cathay Pacific General Manager Revenue Management, Sales & Distribution Ian Shiu said: "December was a good month and business was particularly strong over the Christmas holiday peak. The load factor was high at 81.2% and we were pleased to see demand in the front end holding up. For the year as a whole saw the increase in passenger numbers staying ahead of capacity growth, with strong corporate demand helping to buoy yields"

Cathay Pacific Director & General Manager Cargo Ron Mathison said: "Our performance in December was helped by the recent launch of a twice-weekly Beijing freighter service and five extra flights a week to and from Shanghai, where demand remains strong. Our long-haul services to North America and Europe continue to do well but yields are under pressure in the face of more competition from neighbouring hubs in the region. We are also seeing an increasing shift of air cargo to marine, particularly out of Japan and Korea, as a result of high fuel prices"

[sharpie20]

Cathay Pacific Airways to spend US$1.2 billion a year until 2009 for fleet expansion

The Associated Press
Published: January 12, 2007

HONG KONG: Hong Kong's dominant airline Cathay Pacific Airways Ltd. said it is planning an annual capital expenditure of HK$9.5 billion (US$1.2 billion; €920 million) to HK$10 billion (US$1.28 billion; €1 billion) between now and 2009, mainly for fleet expansion.

Cathay Pacific plans to spend at least HK$9.5 billion each year in 2007 and 2008, and a minimum of HK$10 billion in 2009, Chief Operating Officer Tony Tyler told an analyst conference late Thursday.

Of the planned expenditure, the total to be spent on fleet expansion will be HK$7 billion this year, HK$6 billion in 2008 and HK$8 billion in 2009.

Cathay Pacific will add a total of 43 planes in the coming three years, Tyler said.

The company, which is 40 percent held by conglomerate Swire Pacific Ltd., said it expects its capacity growth to be 10 percent this year, 15 percent in 2008 and 10 percent in 2009.

While capacity growth is mainly driven by cargo expansion, Tyler said the company sees "no sign of softening passenger demand" this year.

The capital expenditure is earmarked for both Cathay Pacific and Hong Kong Dragon Airlines Ltd.

Cathay became the sole owner of unlisted Hong Kong Dragon Airlines Ltd. on completion of a complex shareholding restructuring in September.

As part of that deal, Swire Pacific's stake in Cathay Pacific fell to 40 percent from 46.3 percent, while another shareholder CITIC Pacific Ltd.'s interest in Cathay Pacific was reduced to 17.5 percent from 25.4 percent.

At the analyst conference, Swire Pacific reiterated it has no intention to further reduce its stake in Cathay Pacific.

To cut the risk caused by volatile oil prices, Cathay Pacific plans to hedge 40 percent of its fuel requirements through measures including financial derivatives to cushion any adverse impact should oil prices hit US$80-US$90 this year, Swire Pacific finance director Martin Cubbon said.

Benchmark crude oil prices have tumbled in recent months and on Thursday fell as low as $51.80 a barrel, a level not seen since May 2005.

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Cathay Pacific adds 11 more freighter flights a week to Europe
24 January 2007
Press Release

Cathay Pacific Airways today announced that, effective 1 February 2007, it will add a total of 11 extra freighter flights each week to three major cities in Europe: Amsterdam, Frankfurt and Manchester.

With the extra services, the number of freighter flights operated to Europe every week by the airline will rise from 25 to 36 – an increase of almost 50 per cent. The addition of the 11 flights, which are still subject to Government approval, will further strengthen Hong Kong’s position as one of the world’s leading airfreight hubs.

A total of five flights a week are being added to Frankfurt, Germany’s main cargo hub, operating every Monday, Thursday, Friday, Saturday and Sunday. The extra flights, all routed through Dubai, will take to 11 the number of flights Cathay Pacific operates between Hong Kong and Frankfurt each week.

The other six new flights all follow a Hong Kong-Dubai-Manchester-Amsterdam-Dubai-Hong Kong pattern, departing Hong Kong every day of the week except Friday. Cathay Pacific already operates a freighter service to Manchester, with eight flights a week, while Amsterdam will be a new freighter destination for the airline.

Cathay Pacific Director & General Manager Cargo Ron Mathison said: “Europe is an important cargo market for Hong Kong and we are very pleased to be able to further strengthen our presence in the continent through these additional flights. The Cathay Pacific name has a good reputation in Europe and we believe the enhanced services will help us to better meet demand out of Hong Kong and the Mainland, at the same time giving a further boost to the Hong Kong hub.”

Cathay Pacific currently operates a fleet of 17 freighter aircraft, including seven Boeing 747-200s, six 747-400s and four 747-400 “Boeing Converted Freighters”. Amsterdam will become the airline’s 32nd freighter destination. The airline is committed to building Hong Kong as an airfreight hub by adding new destinations, increasing frequencies and strengthening its freighter fleet. Two more “Boeing Converted Freighters” will be delivered in 2007 and six long-range Boeing 747-400ERFs are on firm order, with deliveries starting in May 2008.

[Termsap]

Is it better than THAI?

[EricIsHim]

Originally Posted by Termsap

Is it better than THAI?

From personal experiece, I would say Cathay is better than Thai in terms of on board and ground services; although Thai's economy class seats have more leg room makes it more comfortable than Cathay for people have long legs like myself.

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HK Cathay Pacific To Borrow US$300M From Loan Mkt
8 February 2007
Dow Jones

The arrangers of the loan, the corporate banking arms of Japan's Mizuho Financial Group Inc. (8411.TO) and Sumitomo Mitsui Financial Group Inc. (8316.TO), are asking other banks to join the syndicate and lend between US$10 million and US$50 million, the banker said.

The loan currency could be in U.S. dollars or Hong Kong dollars, or a mixture of both, she said. The loan will carry an annual margin of 24 basis points over a funding benchmark, which would be Libor if the loan is in U.S. dollars, or Hibor if in Hong Kong dollars.

Any bank that underwrites the equivalent of US$50 million will earn an extra fee, which would boost its average return to 31 basis points a year over the funding benchmark, she said.

The deal will close March 8, said the banker.

Cathay Pacific, which is 40%-held by conglomerate Swire Pacific Ltd. (0019.HK), plans to spend at least HK$9.5 billion in both 2007 and 2008, and a minimum of HK$10 billion in 2009, Chief Operating Officer Tony Tyler said in January.

The capital expenditure is earmarked for both Cathay Pacific and its Hong Kong Dragon Airlines Ltd. unit.

Cathay became the sole owner of unlisted Hong Kong Dragon Airlines Ltd. on completion of a complex shareholding restructuring in September.

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Cathay Pacific and Dragonair issue first integrated figures since merger
Hong Kong Standard
Saturday, February 17, 2007

Cathay Pacific (0293) and Dragonair have released their first joint monthly traffic figures since the integration of the two airlines in September.

But the latest figures show a skewed comparison with the same month last year as Lunar New Year falls later this year. Christmas, Easter and the Lunar New Year are the busiest travel periods in Hong Kong.

The two airlines carried a total 1.73 million passengers in January, 3.5 percent less than last year. Combined passenger load factor was 77 percent, down 1.4 percent, although capacity rose by 1.8 percent.

The airlines' combined January cargo volume was 122,551 tonnes, slightly less than last year. Cargo capacity was 62.2 percent, down 0.2 percentage points.

Dragonair carried almost 333,000 passengers in the first month of the year, with a passenger load factor of 55.2 percent. Two companies now serve nearly 30 destinations in China. Passenger numbers on Southeast Asian and Middle East routes have grown 2.9 percent since Dragonair became a fully owned subsidiary.

Demand for long-haul flights, especially in business and first class, remained strong, Cathay Pacific general manager revenue management, sales and distribution Ian Shiu said.

During the holiday period, Cathay and Dragonair will operate an additional 78 pairs of flights to 10 regional destinations, including Sapporo, Osaka and Tokyo, while Dragonair plans to operate 46 additional pairs of flights, including charters to Taipei and Kaoshiung, Phuket, Kota Kinabalu and Guilin.

In a recent research note, Merrill Lynch said Dragonair had integrated "extremely quickly" due to lack of regulatory or union obstacles, so benefits of the acquisition could accrue quicker than expected.

Merrill raised Cathay's 2007 earnings forecast by 11 percent to HK$5.55 billion and its target price for Cathay Pacific shares from HK$19 to HK$23.25. Cathay shares dropped 0.7 percent to close at HK$21.40.

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Cathay Pacific Net Rises 49% on China Travel, Levies
By Chan Sue Ling and Clare Cheung

March 7 (Bloomberg) -- Cathay Pacific Airways Ltd., Hong Kong's largest carrier, boosted its second-half profit 49 percent, more than expected, helped by travel demand in China and fuel surcharges.

Net income rose to HK$2.42 billion ($310 million), from HK$1.63 billion a year earlier, according to Bloomberg calculations. That was more than the HK$2.1 billion median estimate of seven analysts surveyed by Bloomberg. Sales rose 25 percent to HK$33.7 billion.

Cathay flew a record number of travelers in 2006, as China's economic growth boosted demand and its HK$8.22 billion takeover of Hong Kong Dragon Airlines Ltd. gave it 21 new routes into the world's second-largest aviation market. Chief Executive Officer Philip Chen also raised surcharges twice last year to shield the carrier from record jet fuel prices, its single biggest cost.

``Management is strong, growth is healthy and I'll be happy to hang onto the stock,'' said Pauline Dan, who helps manage $1.8 billion at Manulife Asset Management in Hong Kong. ``With economic growth in the region still looking pretty healthy, airlines will be the story going forward,'' added Dan, She declined to reveal her Cathay holdings.

Cathay shares rose 1.2 percent to HK$19.08 at 2:52 p.m. in Hong Kong, after gaining as much as 3.9 percent. Shares of Air China Ltd., which owns 10 percent of Cathay, gained 6.7 percent to HK$5.70. Cathay will pay a final dividend of 32 Hong Kong cents per share, up from 28 cents in 2005, it said.

Singapore Airlines Ltd., Asia's largest carrier by market value, boosted its profit 19 percent from a year earlier to S$882.4 million ($578 million) in the six months ended December, according to data compiled by Bloomberg. Cathay's second-half figures were derived from full-year results released by the carrier today.

Fuel Costs

Cathay's full-year fuel bill rose 30 percent from a year earlier to HK$20.2 billion, as fuel prices climbed and its fleet expanded, it said. The airline raised HK$6.47 billion through fuel surcharges, 64 percent more than a year earlier. Its gains from hedging also rose 74 percent to HK$426 million, it added.

Cathay raised its surcharges in June and August before cutting them in December and February as fuel prices fell. The levies remain 14 percent higher than they were on Jan. 1, 2006.

The carrier also covered half its second-half fuel needs through hedging, Finance Director Robert Atkinson said in August. Hedging allows airlines to lock in future fuel prices to protect against possible increases.

Jet fuel prices averaged $80.36 a barrel in Singapore in the second half, 11 percent higher than a year earlier. The price closed at $72.80 a barrel yesterday, 22 percent lower than the record close of $93 a barrel on Aug. 8.

Air China

``Passenger traffic growth, improving load factors and falling fuel prices have helped boost Cathay's earnings,'' Edward Wong, a Hong Kong-based Quam Ltd. analyst, said before the announcement. ``This year, Cathay should benefit from its synergies with Dragonair and the cross-shareholding with Air China, as the outlook for air traffic growth in China is positive.''

Dragonair posted a profit of HK$28 million in the three months ended Dec. 31, Cathay said. The analysts' estimates excluded contributions from the unit.

Cathay completed the acquisition of Dragonair in September to expand in China, where economic growth of 10.7 percent helped boost airline passenger traffic in the country 15 percent last year. The carrier also spent HK$4.1 billion to raise its stake in Air China, the nation's largest international carrier, to about 17.5 percent.

Shanghai, Beijing

Cathay has begun integrating Dragonair into its network, including selling tickets on five Dragonair routes from Dec. 1. The airline resumed its own passenger services to Shanghai in December, ending a 16-year hiatus, as well as adding more freighter flights to the city. It also started all-cargo services to Beijing in November.

The airline previously had two passenger services into China, after it gave its other routes to Dragonair in 1990, under Hong Kong's `one airline, one route' policy.

Cathay flew 8.58 million passengers in the six months ended December, 5.9 percent more than a year earlier, according to data compiled by Bloomberg based on the airline's traffic figures. Cargo volume increased 4.3 percent to 626,151 tons.

Dragonair flew 2.95 million passengers in the period, 6.8 percent more than a year earlier. Its cargo volume was little changed at 207,204 tons, according to Bloomberg data.

Cathay's full-year profit rose 24 percent to HK$4.09 billion, or HK$1.16 a share, from HK$3.3 billion, or 97.4 Hong Kong cents, a year earlier, the airline said in a statement. Sales climbed 19 percent to HK$60.78 billion.

[hkth]

RTHK News:
Swire and Cathay Pacific Airways announce management changes

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By 747Classic from HKADB :

[sfgadv02]

Beautiful.. I can't wait to see the new interior of the new economy class.

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Former flight attendants protest over 'unfair dismissal'
Fired employees say they had refused to allow Cathay access to health records
19 March 2007
South China Morning Post

Former Cathay Pacific flight attendants protested at the airline's walk-in recruitment drive yesterday, claiming they had been unfairly dismissed over their health records.

Two of the five flight attendants who were terminated this month and unionist legislator Lee Cheuk-yan held banners and shouted slogans outside the venue in Tsim Sha Tsui.

Handing out leaflets to waiting applicants, Flight Attendants Union chairwoman Becky Kwan Siu-wa condemned the termination of seven flight attendants who refused to give consent for the company to disclose their medical records.

"We strongly protest against the way Cathay Pacific collects data from employees under the Attendance Monitoring Programme ... staff are always pressed to sign the consent, in order to release their medical records to any designated doctors of the company."

One of those sacked, with more than 10 years service, said he was upset by the airline's decision. "The reason given for termination cannot convince me at all," said the man, who would not be named.

He said that over the 10-year period he had taken about 500 days sick leave, due to an occupational disease he had suffered.

According to the union, a flight attendant whose attendance was considered unsatisfactory would be put on the Attendance Monitoring Programme, which required them to undergo a medical evaluation. They would also be asked to sign a consent form so the company could obtain access to their private medical records.

Mr Lee said the protesters planned to lodge a complaint with the Equal Opportunities Commission this week over the sackings.

Director of Cathay's Services Delivery, Quince Chong Wai-yan, said: "I am very disappointed with the union members, who choose to voice their grievances at the recruitment event."

She said the attendants were terminated because their attendance was not satisfactory and they offered no reasonable explanation.

She said the Attendance Monitoring Programme ensured the health of cabin crew met standard requirements.

More than 1,300 jobseekers flocked to the recruitment day to apply for 900 flight attendant positions, with some arriving at 4.15am.

Ms Chong also said apart from flight attendants, the company was planning to hire 250 pilots and 350 ground and airport staff, in order to cope with the airline's expansion.

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Cathay Pacific adds flights
Vancouver Sun
17 March 2007
Vancouver Sun

Due to growing customer demand, Cathay Pacific has announced it will add three Vancouver-to-Hong Kong flights per week to its schedule from June 14 to Oct.28, 2007, inclusive, increasing the frequency from 14 to 17 flights weekly non-stop from Vancouver to Hong Kong -- more than any other airline.

The additional flights will offer greater flexibility for Cathay Pacific passengers travelling to Hong Kong, while enabling seamless connections to the airline's extensive network in Asia. Also, the recent integration of Dragonair into the Cathay Pacific Group adds a choice of more than 20 destinations in Mainland China.

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Cathay Pacific to resume Colombo services on 22 April
4 April 2007
Corporate Press Release

Cathay Pacific Airways announced today that it will resume daily flights to and from Colombo, the capital city of Sri Lanka, on Sunday, 22 April. Flight CX703, which departs from Hong Kong on Sunday, Tuesday, Thursday and Saturday will fly via Bangkok while flight CX711 on Monday, Wednesday and Friday stops in Singapore before continuing to Colombo.

The airline took the difficult decision to suspend its flight operations to and from Colombo following the closure of the airport on 26 March. The airline acted out of concern for the safety of its passengers and crew.

Cathay Pacific Chief Operating Officer Tony Tyler said: "Safety is always our top priority. Cathay Pacific remains committed to Sri Lanka and now that enhanced security measures are being put in place we are happy to be able to resume flights to the country.”

The airline did everything possible to help those affected by the suspension of services. Cathay Pacific crew and staff at Colombo worked hard to look after the affected passengers when the airport was closed, accompanying them to temporary hotel accommodation and later helping to get them to their onward destinations.

Special ticketing arrangements were also put in place for Cathay Pacific passengers, with all cancellation, refund, rebooking and rerouting charges waived for all tickets issued worldwide on or before 26 March 2007 for travel involving Colombo on or before 30 April 2007.

[gladisimo]

Originally Posted by sfgadv02

Beautiful.. I can't wait to see the new interior of the new economy class.

I saw the website, I hope they're not all blue and plasticky

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Cathay Pacific's Cargo Margins Squeezed in China
By Sue Ling Chan and Stephen Engle

March 28 (Bloomberg) -- Cathay Pacific Airways Ltd.'s margins at its cargo business, which accounts for about a quarter of sales, are being squeezed as competition from other carriers depresses rates from China.

"The cargo side looks troubling," said Chief Operating Officer Tony Tyler, set to become the chief executive officer of Hong Kong's largest airline in July, said in an interview in the city yesterday. "That's certainly an area we're giving a lot of attention to."

Cathay Pacific plans to add at least 11 more freighters by the end of 2009 as exports from China surge. Deutsche Lufthansa AG, Singapore Airlines Ltd. and other carriers have also set up ventures in China, helping drive down Cathay's cargo yield, or average rate per shipment, 3.4 percent in 2006.

"Cargo will probably be a lower margin business going forward," said Peter Hilton, a Hong Kong-based aviation analyst at Credit Suisse Group, who rates Cathay Pacific "neutral". "Through deregulation of air service agreements, more foreign flights are allowed to come in through the established routes and provide direct competition."

One-Way Traffic

The carrier's cargo yield and load factor, like other airlines', has also suffered from the limited demand for flying freight into China, which forces airplanes to carry little or no loads into the country.

"If you put a new freighter flight on, it goes out of here full, but it only adds to the directional imbalance problem coming back," Tyler said. "As you add profitable flights, your load factor can go down."

The carrier plans to revive its cargo business by focusing on its pricing and distribution and by targeting long-term contracts, Tyler said, without giving specifics.

Shares of Cathay fell 2.1 percent to HK$19.78 at the close of trading in Hong Kong. The stock has risen 42 percent over the past year, beating a 28 percent gain in the 16-member Bloomberg Asia-Pacific Airlines Index.

Deutsche Lufthansa's cargo unit will experience `high' growth in Asia, helped by its Chinese air-cargo venture, Jade Cargo International Co, it said in January. Great Wall Airlines Co., part-owned by Singapore Airlines' cargo unit, resumed operations with a new parent this year. Korean Air Lines Co., the largest international cargo carrier, plans to form a venture in China this year.

Cathay moved a record 1.2 million tons of cargo last year, bolstered by its HK$8.22 billion ($1.1 billion) purchase of smaller rival Hong Kong Dragon Airlines Ltd. It also began freighter flights to Beijing last year, and added six more weekly services to Shanghai as of the end of January. It plans to form a Shanghai-based cargo venture with Air China Ltd., the nation's largest international airline, this year.

Plane Purchases

Cathay plans to spend HK$10 billion a year until 2009, mainly on plane purchases, it said in January. It expects to boost capacity by 10 percent this year, 15 percent in 2008 and 10 percent in the following year, with growth primarily in cargo.

About HK$19 billion will likely be spent on new aircraft over the three years, with the remainder on infrastructure, said Peter Negline, an analyst at JPMorgan Chase & Co. in Hong Kong.

"This sustained investment is the most aggressive in the airline's history," Negline wrote in a March 7 report. "With a large growth focus on air cargo, we are concerned about the impact of competitive dynamics from a slowdown."

China's exports rose 27 percent last year. Its overseas air cargo shipments are likely to grow 14 percent a year until 2009, according to the International Air Transport Association, which represents about 260 airlines worldwide.

Cathay packed 68.3 percent of its cargo space last year, compared with 67 percent a year earlier. Cargo revenue climbed 11 percent to HK$14.3 billion. Cathay and Dragonair's combined cargo volume fell 0.7 percent in the first two months of this year. Net income rose 24 percent to HK$4.09 billion.

Converted Freighters

Cathay ordered six Boeing 747-400 Extended Range freighters in June for delivery in 2008 and 2009. It also plans to receive five 747s that have been converted into freighters from passenger planes by the end of 2009. Dragonair received the second of five converted 747s in January. The two airlines operated a total of 21 747 freighters at the end of last year. Cathay's venture with Deutsche Post AG's DHL unit flew eight Airbus SAS A300-600 freighters.

Cathay is also due to receive 18 777-300ER passenger planes by the end of the 2010. This influx means that the carrier is only looking at ordering 747-8s or Airbus A380s "in the longer term," Tyler said. It also won't need new mid-range planes, such as the 787 and A350, until 2011 at the earliest, he added.

Cathay's new 777s may also help the airline boost Dragonair's `soft' passenger load factors by generating more feeder traffic for its China-focused unit, Tyler said. It also plans to raise Dragonair's services to all of its destinations to at least daily to make them easier to sell, he added.

The two airlines' combined passenger load factor fell 1.0 percent in the first two months, as they added capacity faster than demand.

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Cathay Pacific releases combined traffic figures for March 2007
12 April 2007
http://www.cathaypacific.com/cpa/en_...0010d21c39____

Cathay Pacific Airways today released traffic figures for March 2007 that show the combined Cathay Pacific/Dragonair passenger numbers and load factor rising over the same month in 2006, while the amount of cargo carried slipped back marginally year on year.

The two airlines together carried a total of 1,866,092 passengers in March, marking a rise of 2.7% on the previous year. The load factor for the month was 79.7%, up 3.7 percentage points on 2006, and there was also a climb in capacity – measured in available seat kilometres (ASKs) – of 1.5%. For the year to date, the number of passengers carried is up 0.7% compared to an ASK rise of 2.1%.

The amount of cargo carried by Cathay Pacific and Dragonair in March fell by 2.0% year on year to 140,002 tonnes while the cargo load factor dipped by almost 4 percentage points. Capacity for the two carriers, measured in available cargo and mail tonne kilometres, rose by 4.2% over the same month last year, while capacity for the year to date is up by the same amount.

Cathay Pacific General Manager Revenue Management, Sales & Distribution Ian Shiu said: “March fell between two major public holidays in Hong Kong this year - Chinese New Year and Easter – yet our passenger business held up very well. We are particularly encouraged by the number of front-end travellers, reflecting the positive sentiment in the Hong Kong business community at the moment, and the outlook remains positive through to the summer peak.”

Cathay Pacific Director & General Manager Cargo Ron Mathison said: “Weak demand in the cargo market continued through March and for the first quarter we saw a dip in our cargo load factor and tonnage carried. There was no significant pickup following the Chinese New Year holidays and in March we saw a falloff in demand out of our key Hong Kong and Chinese Mainland markets as a result of more cargo moving by ocean instead of air.”