Cathay Pacific

Cathay Pacific Airways Limited (; abbreviation: 國泰/国泰) () is an Asian commercial airline based in Hong Kong and operating scheduled passenger and cargo services to 90 destinations world-wide. Its main base is Hong Kong International Airport.

History

Cathay Pacific Airways was founded in Shanghai on September 24, 1946 by an American and an Australian, Roy Farrell and Sydney de Kantzow, both ex-air force, who each put up HK$1 to register the airline. According to legend, the airline was conceived by Farrell and some foreign correspondents at the bar of the Manila Hotel. For Cathay Pacific's maiden voyage, they flew from Hong Kong to Manila, and later on Shanghai. They had a single Douglas C-47. The company initially flew routes between Hong Kong, Sydney, Manila, Singapore, Shanghai, and Guangzhou, while scheduled service was limited to Manila, Singapore and Bangkok only. In 1948 Butterfield & Swire bought 45% of Cathay Pacific, with Australian National Airways taking 35% and Farrell and de Kantzow taking 10% each. The new company began operations on 1 July 1948 and was registered as Cathay Pacific Airways (1948) Ltd on 18 October 1948. Swire later acquired 52% of Cathay Pacific and the airline is still part of the Swire Group through Swire Pacific.

The airline prospered into the 1960s, buying rival Hong Kong Airways in 1959, recording double digit growth until 1967, acquiring its first jet engined aircraft (Convair 880) and beginning international routes to airports in Japan. In 1966 the airline had carried a million passengers. Expansion continued throughout the 1970s and especially the 1980s, when an industry-wide boom encouraged route growth to many European centres and Cathay Pacific went public in 1986. In January 1990, Cathay Pacific and its parent company Swire Pacific acquired a significant shareholding in Dragonair, and a 60% stake in cargo airline Air Hong Kong. The company was hurt by the Asian recession of the late 1990s, undergoing a reorganization and developing a new identity.

In 1996 the Chinese CITIC bought a 25% stake in Cathay Pacific. The Swire Group holding was reduced to 44% as two other Chinese companies, CNAC and CTS also bought substantial holdings. In September 1998 Cathay Pacific became a founder member of the oneworld alliance.

In 2004 the airline had a turnover of Kong dollar|HK$" target="_blank" >^* 39,065 million and made a profit of HK$ 4,417 million. The airline is now owned by Swire Group (45.11%) and Citic Pacific (25.4%) and has 15,040 employees (at January 2005).

Acquisition of Dragonair

On 9th June 2006, Cathay Pacific, Swire Pacific, Air China, CNAC and CITIC Pacific have reached an agreement to change the shareholder structure of Cathay Pacific, Dragonair and Air China. Under the agreement, subject to shareholder approvals, Dragonair will be wholly owned by Cathay Pacific. Air China will acquire a 17.5% stake in Cathay Pacific, and Cathay Pacific will double its shareholding in Air China to 20%.

Swire will remain the principal, long-term shareholder in Cathay Pacific. Dragonair will continue to operate under its own brand, but under Cathay Pacific's management.

Cathay Pacific and Air China will continue to develop closer cooperation on many fronts, including establishing an air cargo joint venture in Shanghai.

Under the agreement:

1. Dragonair will become the wholly owned subsidiary of Cathay Pacific - Cathay Pacific has offered to acquire the remaining 82.21% shareholding in Dragonair that it does not already own for HK$8.22 billion, turning it into a wholly owned subsidiary. - The consideration for the Dragonair shares will be a combination of the issue of new Cathay Pacific shares at HK$13.50 each and cash.

2. Air China will become a substantial shareholder of Cathay Pacific - Air China will acquire Cathay Pacific shares from Swire Pacific and CITIC Pacific at HK$13.50 each. Air China will therefore become a shareholder of Cathay Pacific with a 10.16% equity interest for a total consideration of HK$5.39 billion. In aggregate, Air China and its subsidiary CNAC Limited will own an aggregate 17.5% of Cathay Pacific. - Both Swire and CITIC have also undertaken to further reduce their respective shareholding in Cathay Pacific to 40% and 17.5% within 12 months of the completion of the agreement by selling Cathay Pacific shares in the open market.

3. Cathay Pacific will increase its shareholding in Air China - Cathay Pacific has agreed to subscribe in cash for 1,179 million Air China H shares at HK$3.45 per each Air China H share, increasing its shareholding in Air China to 20% from 10% at a total cost of HK$4.1 billion. - Reflecting its confidence in the benefits and synergies from acquiring Dragonair, Cathay Pacific has agreed to pay a special dividend of HK$0.32 per share upon completion of the transaction.

It was also reported that as part of the deal, the Dragonair brand may be phased out 6 years later.

Reference: Cathay Pacific Website

Awards

Cathay Pacific was named World's Best Overall Airline in 2003 and 2005 by Skytrax survey. The airline was also awarded with Best First Class, Best First Class Lounge (Hong Kong), and Best Business Class Lounge (Hong Kong) by Skytrax. Source The airline was named Airline of the Year 2006 by Air Transport World (ATW). Source

Onboard Entertainment

Personal TV (PTV)

Cathay Pacific's PTV system is called StudioCX.

PTV is available in all classes and on all flights. Passengers in all classes can choose from more than 20 different video channels. Ten interactive games are available on all long-haul flights.

Audio/Video on Demand (AVOD) service is available for all First and Business Class passengers on all long-haul flights.

StudioCX provides programmes and films mainly in Cantonese and English with some programmes in Mandarin, Korean and Japanese. On selected routes there are also English-language movies with alternative soundtracks in a range of European and Asian languages.

The StudioCX system is being upgraded in all classes and the first aircraft featuring the upgraded system (an A330-300) is already in service. AVOD is not available in Economy Class even with the upgraded system.

Starting from February 2006, first and business class passengers travelling on long-haul flights operated by Cathay Pacific will be given a wider range of entertainment choices. The selection will include 50 movies and 100 TV shows, almost 50 percent more than before, available on demand.

Inflight Magazine

Inflight Audio

There are over 22 audio channels
There are over 100 CD albums in 11 genres for First & Business Class Passengers
English, Cantonese, Mandarin and Japanese are available in all flights.
Korean, Thai, Hindi, Tagalog and Bahasa Malaysia are available in some flights only.

Reference: Cathay Pacific Website

Cathay Pacific Network

Cathay Pacific Cargo has launched daily freighter services from Hong Kong to Shanghai using Boeing 747-200F aircraft, making it the second mainland China city served after it resumed passenger services to Beijing in December 2003, after a 13 year break (ref: Airliner World, March 2005).

The first flight to land at the new Hong Kong International Airport, Chek Lap Kok, was the Cathay Pacific flight CX6889 from New York JFK Airport, USA, non-stop and flying over the North Pole, which arrived on July 6, 1998. This flight was named Polar One. This flight path has now become the main route from the U.S. East Coast to Asia. The non-stop route from Hong Kong to New York JFK over the North Pole (CX830/831) became fully operational on 1 July 2004 with A340-600 aircraft. It is Cathay Pacific's longest direct flight, lasting for 16 hours.

After 25 years of operating flights to London, Cathay Pacific announced on June 27 2005 the addition of a fourth daily non-stop flight to the British capital. The new service began on December 1 2005 and is operated by an Airbus A340-300 in a three class configuration.

On August 1 2005, Cathay Pacific added a third daily non-stop service to Los Angeles.

On November 1 2005, Cathay Pacific added a second daily non-stop flight to and from Jakarta. This new service is operated by an Airbus A330-300 (two class configuration). The current one-stop service to Jakarta via Singapore have been discontinued.

The fifth daily flight to Seoul, South Korea began on January 27 2006.

On December 7 2005 Cathay Pacific announced it will strengthen Hong Kong and Europe's connections with a daily service to Rome, starting March 27 2006. Cathay Pacific is the only airline that operates direct flights to Italy from Hong Kong.

On 29 March 2006, Cathay Pacific announced it will launch its first freighter service to Chennai, starting 2 June 2006.

Codeshare partners

Cathay Pacific network is expanding rapidly with codeshare links from oneworld hubs such as American Airlines' Chicago O'Hare, Dallas/Fort Worth, Miami International Airport, Los Angeles, and British Airways' London Heathrow.

Cathay Pacific has also started to codeshare on France SNCF TGV Trains from Aéroport Charles-de-Gaulle TGV Station to ten French cities.

Recently, Cathay Pacific and British Airways have expanded their codeshare agreement. Zurich has been added to one of the Cathay Pacific's codeshare destinations.

The following are codeshare partners and codeshare links of Cathay Pacific:
- Air China: Cathay Pacific is codesharing with Air China on flights between Hong Kong and Beijing. Cathay Pacific has a 20% equity holding in Air China.
- Aeroflot: The launch of Cathay Pacific's service to Moscow is postponed. The airline continues to put its "CX" code on Aeroflot's four flights weekly between Hong Kong and Moscow.
- American Airlines (oneworld member): Cathay Pacific puts its code on American Airlines' flights to more than 20 US cities from American Airlines' hubs including Los Angeles, Chicago, Dallas/Fort Worth and New York.
- British Airways (oneworld member): British Airways carries the "CX" code to more than 15 European cities from London Heathrow. Cathay Pacific also carries the "BA" code from Hong Kong to some South Asian and Australasian destinations such as Denpasar (Bali) and Auckland.
- Iberia Airlines (oneworld member): Cathay Pacific codeshares on Iberia's flights from Amsterdam to Madrid and from London to Barcelona. In return, Iberia puts its "IB" code on Cathay Pacific's flights between Amsterdam (CX270/271 - IB7762/7763), London (CX250/251 - IB7760/7761) and Hong Kong.
- Japan Airlines (oneworld member-to-be): Cathay Pacific codeshares with Japan Airlines from Hong Kong to Fukuoka, Nagoya and Osaka.
- Malaysia Airlines: Cathay Pacific codeshares with Malaysia Airlines on flights between Hong Kong, Kuala Lumpur and Penang.
- Qantas (oneworld member): Cathay Pacific carries "QF" code from Hong Kong to Rome. However, there is no codeshare agreement for flights between Hong Kong and Australia.
- SNCF TGV Trains: Cathay Pacific puts its "CX" code on the train services from Paris' Aéroport Charles-de-Gaulle TGV Station to Bordeaux, Lille, Lyon, Marseille, Montpellier, Nantes, Poitiers, St-Pierre des Corps / Tours and Valence.
- Vietnam Airlines: Cathay Pacific codeshares with Vietnam Airlines on all flights between Hong Kong, Ho Chi Minh City and Hanoi.

Flight Numbers

Flight numbers are allocated according to geographical regions:

CX001-CX099: Cathay Pacific Cargo flights
CX100-CX199: Oceania-bound destinations
CX200-CX299: Europe-bound destinations
CX300-CX399: China-bound destinations
CX400-CX499: Taiwan and Korea-bound destinations
CX500-CX599: Japan-bound destinations
CX600-CX699: CX 692/3 are Penang bound (non-stop)
CX700-CX799: Southeast Asia, South Asia, Middle East and Africa-bound destinations
CX800-CX899: North America-bound destinations, of which CX8-8/8-9 are always flights to/from Canada
CX900-CX999: Philippines-bound destinations
CX1--- series: code-share flights operated by other airlines from/to Hong Kong, except
CX12-- series: British domestic codeshares operated by British Airways
CX2--- series: Charter flights
CX3--- series: Delivery flights, the most common number in use is CX3330.
CX6--- series: codeshares operated by Air China
CX7--- series: North America codeshares operated by American Airlines
CX8--- series: Charter flights
CX9--- series: Europe codeshares operated by British Airways, Iberia, SNCF or Aeroflot

Fleet

Cathay Pacific's aircraft fleet of 97 planes is fitted with 3 classes of service (First, Business, and Economy) for long-haul flights, and 2 classes of service (Regional Business and Economy) for short-haul flights.

**Current fleet by aircraft size**
(as of 1 June 2006)
Aircraft	In Operation (on order)	Seat Configuration	Notes
Airbus A330-300 (330)	21 (3)	J44/Y267(311)	With new Regional Business Class on some aircraft
Airbus A330-300 (333)	5	F8/J32/Y211(251)	With new Long Haul Business Class
Airbus A340-300 (34C)	5	F8/J30/Y205(243)	With new Long Haul Business Class
Airbus A340-300 (34D)	10	J30/Y257(287)	With new Long Haul Business Class
Airbus A340-600 (346)	3	F8/J60/Y218(286)	With new Long Haul Business Class and Enhanced Economy Class
Boeing 747-200F	7	-
Boeing 747-400 (744)	19	F12/J47/Y324(383)	With new Long Haul Business Class
Boeing 747-400 Premium (74J)	4	F12/J65/Y268(345)	With new Long Haul Business Class
Boeing 747-400F	6	-
Boeing 747-400BCF	1 (5)	-
Boeing 747-400ERF	0 (6)	-
Boeing 777-200 (777)	5	J45/Y291(336)
Boeing 777-300 (773)	11 (1)	J59/Y326(385)	With new Regional Business Class on some aircraft
Boeing 777-300ER (77W)	0 (18)	N/A	Probably with new Long Haul Business Class

At April 2006 the average age of the Cathay Pacific fleet was 9.9 years.

On July 29 2005, Cathay Pacific took delivery of its 95th aircraft, an Airbus A330-300 aircraft, which is equipped with new-generation entertainment system. Cathay Pacific has 3 more Airbus A330-300s on firm order, and a new Boeing 777-300, and will also be adding to its fleet 5 used 747-400s. These used Boeing 747-400 are primarily ex-Singapore Airlines 747s. By September 2006, Cathay's 60th anniversary, the fleet size will reach 100 aircraft.

On December 1, 2005, Cathay Pacific announced one of the biggest aircraft order in its history, ordering 16 777-300ER aircraft (12 from Boeing and 4 on lease from ILFC to be delivered between September 2007 and July 2010, plus options on 20 more of the type, in which 2 of the options are converted to orders on June 1, 2006. The airline intends to use the 777-300ERs to displace existing A340-600s, some of which are early models with payload limitations. Cathay Pacific also ordered 3 more Airbus A330-300 from Airbus the same day, with the delivery of the aircraft in 2008. Cathay is currently studying both the Airbus A380 and Boeing 747-8 for its future high-capacity long-haul requirements.: ^*

On June 1, 2006, Cathay Pacific placed orders for two more Boeing 777-300ER aircrafts, increasing its commmitment to a total of 18 aircrafts of this type. Previously, the airline placed firm orders for 16 777-300ERs with purchase rights to 20 more. Two of these purchase rights have now been exercised. All of these aircrafts will be powered by General Electric GE90-115B engines.

Historic Fleet

Since its foundation in 1946, Cathay Pacific had operated many types. The first two Cathay Pacific aircraft were two World War II surplus Douglas DC-3 named Betsy and Nikki. Aircraft that have been in service with Cathay Pacific are:

Douglas DC-3
Douglas DC-4
Douglas DC-6
Lockheed L-188 Electra
Convair 880
Boeing 707-320
Boeing 747-200
Boeing 747-300
Airbus A340-200 (leased from Philippine Airlines for 3 years before delivery of A340-300)
Lockheed L-1011-100 (Tristar).

In the late 1980s and early 1990s, Cathay Pacific was the largest operator of Lockheed Tristar outside the USA.

Loyalty programmes

Cathay Pacific has 2 programmes: the Marco Polo Club ("The Club") and Asia Miles. The Marco Polo Club allows members exclusive benefits. Asia Miles is a separate travel reward programme that comprises a variety of airlines and hotel partners in Asia, as well as credit / charge card companies, car rental agencies, telecommunication companies and other non-airline partners. Members of 'The Club' are automatically enrolled as Asia Miles members.

Source: Asia Miles-Home