Cathay Pacific 1999 Annual Report Download - page 12

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Review of Operations
16 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
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 33 scheduled carriers.
•The first full year of operation for the company at its new facility at Hong Kong International Airport went
smoothly.
•15 million meals were produced in 1999.
•The company’s profit improved over the previous year.
Hong Kong Airport Services Limited (“HAS”)
•HAS, in which Cathay Pacific holds a 70% interest, is one of three ramp handling companies at 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 airport.
•The company continued to improve productivity by implementing cost saving initiatives on the use of ground
services equipment.
•The company achieved a small profit in its first full year of operation.
Hong Kong Dragon Airlines Limited (“Dragonair”)
Passenger Passenger
ASK (million) Load Factor (%) Yield
1999 1998 Change 1999 1998 Change Change
All routes 4,398 4,066 +8.2% 62.5 59.6 +2.9%pt -8.7%
•Dragonair, in which Cathay Pacific holds a 19% interest, is a Hong Kong-based airline operating scheduled
and charter services to 25 destinations in Asia, 16 of which are in China. No new destinations were added
in 1999. Services to Tianjin and Ningbo were temporarily suspended with effect from May 1999 due to
low demand.
•Frequencies to Shanghai, Beijing, Kunming, Qingdao, Dhaka and Phnom Penh were increased during the year
in order to cope with increased demand. In addition a weekly charter service to Subic Bay in the Philippines
was introduced.
•As a result of market competition, passenger yield dropped by 8.7% from the 1998 level. Cargo, however,
performed well with significant increases in both tonnage and revenue.
•The company carried 2.3 million passengers and uplifted 65,900 tonnes of cargo in 1999, representing an
increase of 13.3% and 51.1% respectively over 1998.
•Fleet profile as at 31st December 1999:
Firm orders Options
In service at 2002 and 2002 and
Aircraft type 31st December 1999 2000 2001 beyond beyond
A320 51–5–
A321 21
#–– –
A330 5–2
#–2
Fleet Total 12* 2 2 5 2
# O ne A321 and one A330 will be on operating leases.
* All aircraft were on operating leases, except for two A330s which were on finance leases. O ne A320 was leased out to another airline from June 1999
onwards, and is not included in the table, and one A330 was returned to the lessor in O ctober 1999.