Cathay Pacific 1998 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 1998 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 70

  • 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

16 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
Review of Operations
AHK Air Hong Kong Limited (“AHK”)
•AHK, a 75% owned subsidiary, is an all-cargo carrier with scheduled services to Brussels, Dubai,
Manchester and Osaka.
•Its fleet consists of three B747-200Fs leased from Cathay Pacific.
•AHK achieved a better profit than that of 1997.
•Overall capacity as measured in ATKs increased by 13.9%.
•Efficiency as measured by cost per ATK improved by 10.7%.
Review of Affiliated Businesses and Associated Companies
Cathay Pacific Catering Services (H.K.) Limited
•This wholly-owned subsidiary is the principal flight kitchen in Hong Kong, serving 35
scheduled carriers.
•With the downturn in Hong Kong traffic, there was no growth in the production of meals which
remained at 15 million in 1998.
•The company had a successful start up of the new facility at Hong Kong International Airport on
6th July.
•The company’s profit was lower than that of the previous year.
Hong Kong Airport Services Limited (“HAS”)
•HAS, in which Cathay Pacific holds a 70% interest, is one of the three ramp handling companies at
the new Hong Kong International Airport providing aircraft loading, aerobridge and passenger
step operations, and mail, cargo and baggage delivery services.
•The company was awarded a ten-year exclusive contract to operate passenger bus, staff bus and
other bus services for the whole airport.
•It is the largest ramp handling operator accounting for over 50% of the market in Hong Kong.
Major customers include Cathay Pacific, Air Hong Kong, All Nippon Air, Dragonair, Japan Airlines,
Korean Airlines, Singapore Airlines and Thai Airways. Over 3,000 flights are handled monthly.
•The company commenced operations in July 1998 following the opening of the new Hong Kong
International Airport. Although the Asian crisis affected the business volume, the company
managed to be profitable in its half year of operation.
Hong Kong Dragon Airlines Limited (“Dragonair”)
Passenger Passenger
ASK (million) Load Factor (%) Yield
1998 1997 Change 1998 1997 Change Change
All routes 4,066 3,729 +9.0% 59.6 68.5 -8.9%pt -8.0%
•Dragonair, in which Cathay Pacific holds a 19% interest, is a Hong Kong-based airline operating
scheduled and charter services to 27 destinations in Asia, 18 of which are in Mainland China.
•In February 1998, a thrice weekly service to Fuzhou commenced operation while the frequency to
Shanghai was increased during the year.