Serving Hong Kong for six decades

Cathay Pacific Airways has been proud to call Hong Kong its home for the past 64 years, and the airline works hard to promote the city and build its reputation as one of the world’s most important international aviation hubs. 

The airline has seen rapid growth in recent years, spurred by its huge investments in new aircraft and infrastructure at Hong Kong International Airport. Like its home city, the airline has big ambitions and its vision is both bold and simple: to be the best airline in the world. But it will never be an easy ride. The airline industry is noted for its volatility, and over the past decade Cathay Pacific has had to deal with the impact of a range of crises including bird flu, 9/11, SARS, soaring fuel prices and the hugely damaging effects of the global financial crisis of 2008-2009.

The downturn hit Cathay Pacific’s passenger traffic and freight business hard, but the airline did not panic, keeping its international network intact and its team in place. It pared back on capital expenditure but at the same ensured there was no impact on customer-facing services. In a huge show of solidarity, the vast majority of Cathay Pacific staff signed up for unpaid leave.

The airline’s strategy during the downturn paid dividends when the business turnaround began in the last quarter of 2009. Cathay Pacific found itself in a good position to quickly restore services, announce new destinations, aircraft orders and product enhancements. The business rebound was stronger than anyone anticipated and in mid-November 2010, Cathay Pacific announced it expected to make a record profit of at least HK$12.5 billion for the year. As a mark of its general confidence, and ongoing commitment to Hong Kong, the company is now going ahead with the purchase of new aircraft valued at more than HK$115 billion and is investing HK$5.5 billion in a state-of-the cargo terminal at Hong Kong International Airport.

Everything the airline has achieved has been done under its own steam; Cathay Pacific receives no form of government support.

Investing for the future
The Cathay Pacific Group – which includes sister airline Dragonair and all-cargo carrier Air Hong Kong – operates to more than 140 destinations around the world, employing a fleet of some 160 aircraft.

Cathay Pacific itself now operates a fleet of 121 wide-body aircraft for both passenger and cargo services. The fleet is still young, with an average of less than 11 years, but the airline is keen to invest for the future to ensure it continues to operate the most modern and fuel-efficient fleet possible.

An order for 36 aircraft announced in August 2010 was Cathay Pacific’s biggest single purchase to date. The airline now has a total of 65 aircraft on firm order, including 18 Boeing 777-300ERs, 7 Airbus A330-300s, 30 Airbus A350 XWBs (Extra Wide Body) and 10 Boeing 747-8 Freighters. A total of 15 aircraft will be delivered in 2011 alone.

Other significant investments include the building of a new HK$5.5 billion cargo terminal at Hong Kong International Airport, and enhanced products in the cabin and on the ground.

The cargo terminal will begin operating in early 2013 and will boost the efficiency and competitiveness of the Hong Kong air cargo hub. The terminal is being designed to handle an annual air cargo throughput of 2.6 million tonnes and its heart will be a HK$1.4 billion mechanical handling system - the most advanced in the world to date.

Gateway to the Mainland
A key focus for the airline is to enhance Hong Kong’s position as a leading international aviation and gateway to the Chinese Mainland.

An important development took place in September 2006 when Cathay Pacific entered into a strategic relationship with Air China. Air China now holds a 29.99% stake in Cathay Pacific while Cathay Pacific holds 19.27% of the shares of Air China.

The two airlines are cooperating on a number of fronts, including the establishment of a cargo joint venture to capture airfreight opportunities of the Yangtze River Delta region. The joint venture is expected to begin operations in early 2011 using an existing carrier, Air China Cargo, as the platform.

At the same time as the relationship with Air China was established, Dragonair became a wholly owned subsidiary of Cathay Pacific. Dragonair is an awardwinning regional carrier that operates a fleet of 32 vaircraft to 33 destinations, including 17 in Mainland China.

Service and product excellence
The Cathay Pacific service philosophy, “Service Straight From the Heart”, is summed up in a service style that is always efficient and professional, but also friendly and caring.

Through its recent strategy review, the airline has put in place a number of initiatives that are already helping to boost the level of service provided by its staff. Foremost among these was the unveiling of its new Business Class product that will help to redefine the travel experience for premium passengers and put Cathay Pacific ahead of the game in the ultra-competitive market for international premium travel. The cabin – which will offer one of the longest and widest seats in the sky– will be introduced on the A330 and Boeing 777-300ER fleets starting from March 2011.

On the ground, Cathay Pacific opened The Cabin, its latest passenger lounge at Hong Kong International Airport - a 1,339-square-metre space located by Gate 23 on the airport’s central concourse. The collection of Cathay Pacific Group lounges at Hong Kong International Airport includes three other departure lounges –- The Wing, The Pier and G16 – and The Arrival for passengers flying into Hong Kong.

Social responsibility
Cathay Pacific is fully aware of its responsibility to the community it serves. The airline has a number of well- established community initiatives in place that have a particular focus on helping young people. The airline has also developed a detailed strategy for running a sustainable business, and its 2009 Sustainable Development Report earned an A+ rating under the influential Global Reporting Initiative guidelines, recognising both the in-depth nature and transparency of the reporting.

In 2010, Cathay Pacific was honoured to receive the Total Caring Award - the top award under the Caring Company Scheme organised by the Hong Kong Council of Social Service since 2003. The award recognises local companies that demonstrate a “continual and sustainable total commitment in caring for the well-being of the community, the employees and the environment”. The airline has been awarded the Caring Company Logo every year since the Caring Company Scheme was launched.