Cathay Pacific 2000 Annual Report Download - page 19

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CATHAY PACIFIC AIRWAYS LIM ITED ANNUAL REPORT 2000 17
Review of Operations
In M arch, a new Air Services Agreement
between the General Administration of Civil
Aviation of China and the Government of
Hong Kong Special Administrative Region
was finalised. Dragonair’s charter routes to
Mainland China were upgraded to
scheduled services and the representative
offices in a number of major cities in
Mainland China were granted full sales and
ticketing rights for both passenger and
cargo services.
The airline’s headquarters w as relocated to
Chek Lap Kok on completion of Dragonair
House in June.
In October, Dragonair introduced new
uniforms for cabin crew and airport staff,
and launched its new loyalty club, Elite, to
provide more benefits to its valued
customers.
The company reported an improved profit as
a result of an increase in passenger
numbers and a rise in yields. How ever,
higher fuel prices had a negative effect.
With the finalisation of the new Air Services
Agreement and China joining the World
Trade Organisation, demand for air travel
and cargo between Hong Kong and
Mainland China is expected to increase.
Management of Dragonair is optimistic
about the future of the airline.
Hong Kong Aircraft Engineering
Company Limited (“HAECO”)
HAECO, in w hich Cathay Pacific holds a
27% interest, provides aircraft
maintenance and overhaul services at
Hong Kong International Airport.
The company achieved a profit after tax of
HK$400 million, 574% higher than in the
previous year. This increase w as mainly due
to profit arising on the sale of properties and
interests in joint ventures and effective cost
saving initiatives.
Line maintenance services w ere under
severe competition at Hong Kong
International Airport, w hilst traffic volumes
have started to rise as airlines increase
capacity. Airframe maintenance activity at
the hangar facility remained high.
Taikoo (Xiamen) Aircraft Engineering
Company Limited (TAECO), 42% ow ned by
HAECO and 9% by Cathay Pacific, had a
profitable year. In August, TAECO
performed its first passenger aircraft to
freighter conversion for a B747 aircraft and
in November TAECO performed its first
C check on an A330.
Hong Kong Aero Engine Services Limited
(HAESL), HAECO’s joint venture with
Rolls-Royce plc and SIA Engineering Pte
Limited, achieved good results w ith higher
workloads.