Cathay Pacific 2015 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2015 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Annual Report 2015
13
Review of other subsidiaries and associates
The share of profits from other subsidiaries and associates
in 2015 increased by 86.2% to HK$2,428 million from
HK$1,304 million. This mainly reflected a strong
performance from our associate, Air China, whose results
benefited from low fuel prices and strong passenger
demand, offset in part by the devaluation of the Renminbi.
Below is a review of the performance and operations of
subsidiaries and associates.
AHK Air Hong Kong Limited (“Air Hong Kong”)
• Air Hong Kong is the only all-cargo airline in Hong Kong.
It is 60.0% owned by Cathay Pacific. It operates express
cargo services for DHL Express.
• Air Hong Kong operates eight owned Airbus A300-600F
freighters, two dry leased Airbus A300-600F freighters
and three Boeing 747-400BCF converted freighters dry
leased from Cathay Pacific.
• In March 2015, Air Hong Kong converted a wet lease of
an Airbus A300-600F freighter to a dry lease.
• During 2015 Air Hong Kong operated six flights per week
services to Bangkok, Ho Chi Minh City, Osaka, Penang
(via Ho Chi Minh City), Seoul, Shanghai, Singapore, Taipei
and Tokyo and five flights per week services to Beijing,
Manila and Nagoya.
• On-time performance was 87.0% within 15 minutes.
• Compared with 2014, capacity in terms of available tonne
kilometres increased by 0.6% to 776 million. The load
factor increased by 0.4 percentage points to 66.5%.
Revenue tonne kilometres increased by 1.3% to 516
million.
• Air Hong Kong achieved an increase in profit for 2015
compared with 2014.
Asia Miles Limited (“AML”)
• AML, a wholly owned subsidiary, manages Cathay Pacific
Group’s reward programme. It has more than eight million
members.
• There was a 10.0% increase in redemptions by Asia Miles
members on Cathay Pacific and Dragonair flights in
2015.
• In 2015, AML achieved an increase in profit compared
with 2014, due to an increase in business volume.
Cathay Pacific Catering Services (H.K.) Limited
(“CPCS”) and overseas kitchens
• CPCS, a wholly owned subsidiary, operates the principal
flight kitchen in Hong Kong.
• CPCS provides flight catering services to 43
international airlines in Hong Kong. It produced 29.6
million meals and handled 72,000 flights in 2015
(representing a daily average of 81,000 meals and 196
flights and an increase of 8.9% and 4.1% respectively
over 2014). CPCS had a 66.4% share of the flight catering
market in Hong Kong in 2015.
• Increased business volume and effective management
of costs resulted in higher revenue and profit in 2015.
• An expanded facility with 40% additional capacity is
scheduled to open in the second half of 2016.
• Outside Hong Kong, profits were generally in line with
expectations in all kitchens.
Cathay Pacific Services Limited (“CPSL”)
• CPSL, a wholly owned subsidiary, operates the Group’s
cargo terminal at Hong Kong International Airport. It has
the capacity to handle 2.6 million tonnes of cargo
annually.
• Eva Air and AirAsia Zest became customers of CPSL in
2015. At the end of the year, CPSL provided cargo
handling services to eight airlines. Four more airlines
became customers in March 2016.
• CPSLhandled1.7milliontonnesofcargoin2015,51.0%
of which were transhipments. Import and export
shipmentsaccountedfor17.0%and32.0%respectively
of the total.
• The 2015 operating performance was better than those
of 2014. This reflected the addition of new customers
and effective management of operating costs.
2015 in Review