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ANNUAL REPORT 2014
132014 in Review
Hong Kong Airport Services Limited (“HAS”)
• HAS, a wholly owned subsidiary,provides ramp and
passenger handling services in Hong Kong. It provides
ground services to 23 airlines, including Cathay Pacific
and Dragonair.
• In 2014, HAS had 47.0% and 20.0% market shares in
ramp and passenger handling businesses respectively at
Hong Kong International Airport.
• In 2014 the number of customers for passenger handling
was 20 and the number of customers for ramp handling
was also 20. Passenger handling flights decreased by
10.6% and ramp handling flights decreased by 1.8%
compared with 2013.
• The financial results for 2014 improved, reflecting
stringent cost control and yield management.
Air China Limited (“Air China”)
• Air China, in which Cathay Pacific has a 20.13% interest,
is the national flag carrier and leading provider of
passenger, cargo and other airline-related services in
Mainland China.
• At 31st December 2014, Air China operated 225
domestic and 97 international (including regional) routes
to 32 countries and regions, including 53 overseas cities,
three regional cities and 103 domestic cities.
• We have two representatives on the Board of Directors
of Air China and equity account for our share of Air
China’s profit.
• Our share of Air China’s results is based on its financial
statements drawn up three months in arrear.
Consequently our 2014 results include Air China’s results
for the 12 months ended 30th September 2014, adjusted
for any significant events or transactions for the period
from 1st October 2014 to 31st December 2014.
• In the first half of 2014, Air China’s results were adversely
affected by a difficult operating environment and
substantial foreign exchange losses caused by the
depreciation of the Renminbi. As the year progressed, Air
China’s results improved as a result of lower fuel prices.
Despite this improvement, the Group recorded a
decrease in profit from Air China in 2014.
• In December 2014, Air China ordered 60 Boeing 737
aircraft. The aircraft are expected to be delivered from
2016 to 2020.
Air China Cargo Co., Ltd. (“Air China Cargo”)
• Air China Cargo, in which Cathay Pacific owns an equity
and an economic interest, is the leading provider of air
cargo services in Mainland China.
• At 31st December 2014, Air China Cargo operated 12
freighters. It operates scheduled freighter services to
seven countries and regions. It flies to 11 cities in
Mainland China and 11 cities outside Mainland China.
Taking account of its rights to carry cargo in the bellies of
Air China’s passenger aircraft, Air China Cargo has
connections to 159 destinations.
• Air China Cargo’s financial results improved in 2014. This
reflected the general improvement in air cargo market
from the summer of 2014 and improved operating
efficiency resulting from the replacement of three
Boeing 747-400BCF converted freighters with four
Boeing 777-200F freighters in 2014.