Cathay Pacific 2005 Annual Report Download - page 15

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13
Cathay Pacific Airways Limited Annual Report 2005
AHK Air Hong Kong Limited (“AHK”)
• AHK, in which Cathay Pacific holds a 60% interest,
is an all-cargo carrier with a major focus on express
cargo services for DHL Express.
• During the year, AHK further expanded its overnight
express cargo network to Seoul, increasing the
number of destinations it serves in Asia to seven,
together with Bangkok, Osaka, Penang, Singapore,
Taipei and Tokyo.
• The airline took delivery of two new A300-600
freighters in February and March, increasing the
fleet size to six. Two more A300-600 freighters will
be delivered in 2006.
• With network expansion, capacity increased by
44.1%. Load factor increased by 8.3 percentage
points while yield decreased by 8.7%.
• AHK recorded a higher profit in 2005 despite the
adverse impact of higher fuel prices.
Cathay Pacific Catering Services (H.K.) Limited
(“CPCS”)
• CPCS, a wholly owned subsidiary of Cathay Pacific,
is the principal flight kitchen in Hong Kong.
• The company produced a record 19.8 million meals
in 2005 and accounts for 71% of the airline catering
market in Hong Kong. Business volume increased
by 12% over 2004.
• The company recorded a satisfactory result in 2005
despite a series of food scares in Hong Kong.
However, the profit margin decreased with higher
crude oil prices and cost-saving campaigns of
customer airlines seeking to compensate for higher
fuel prices.
• The performance of other inflight catering kitchens
in Asia and Canada are also encouraging.
Hong Kong Airport Services Limited (“HAS”)
• HAS, in which Cathay Pacific holds a 70% interest,
is the largest franchised ramp handling company
at HKIA.
• The company recorded a healthy growth in revenue
as it handled a record number of flights.
• With continuous stringent cost controls and an
improving business environment, HAS achieved a
record profit in 2005.
Hong Kong Aircraft Engineering Company Limited
(“HAECO”)
• HAECO, in which Cathay Pacific holds a 27%
interest, provides aircraft maintenance, modification
and overhaul services at HKIA.
• The company achieved a consolidated profit
attributable to its shareholders of HK$618 million,
a 41.1% increase on the previous year.
• Line maintenance business continued to grow as a
result of the increase in aircraft traffic through
HKIA. Hangar capacity was fully utilised throughout
the year due to strong market demand for heavy
maintenance work.
• Construction of the new two-storey office on the
cargo apron and the second hangar at HKIA is
making good progress. Openings are scheduled in
the second half of 2006. HAECO’s headcount at
HKIA increased by 12% during 2005 to meet the
demand and in preparation for the second hangar.
Review of Operations Review of subsidiaries and associates