Cathay Pacific 2002 Annual Report Download - page 13

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10 Cathay Pacific Airways Limited Annual Report 2002
•Our product has been enhanced with the
introduction of Internet cargo booking and
Website functions that feature consignment
track and trace.
•Cathay Pacific is the world’s first airline certified
under the Cargo 2000 quality assurance
initiative.
AHK Air Hong Kong Limited (“AHK”)
•AHK continues to operate scheduled services
to Osaka and Seoul and charter flights for Cathay
Pacific using a B747-200 freighter.
•In July, the company commenced five times
weekly express cargo services to Tokyo using a
wet leased regional freighter. In March 2003,
the second wet leased freighter joined the fleet
to operate a service to Bangkok.
•In October, DHL entered into an agreement with
Cathay Pacific and acquired a 30% shareholding
in AHK. Under this agreement, AHK will operate
express cargo services for DHL to major Asian
cities.
•The company has ordered six A300-600
freighters for delivery in 2004 and early 2005
and will extend its Asian network.
•Capacity, as a result of the return of two
B747-200 freighters to Cathay Pacific in July, fell
by 45.5% over 2001 whilst the load factor
decreased by 4.2 percentage points.
•Yield increased by 20.2% due to a reduction in
the number of lower yield long haul services
following the transfer of the European services
to Cathay Pacific in July.
•AHK recorded a satisfactory profit in 2002.
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.
•15 million meals were produced in 2002,
representing a growth of 15% over 2001. The
company accounts for 70% of the airline
catering market in Hong Kong.
•The company achieved a higher profit due mainly
to increased business.
Hong Kong Airport Services Limited
(“HAS”)
•HAS, in which Cathay Pacific holds a 70%
interest, is the leading franchised ramp handling
company at Hong Kong International Airport.
Services include aircraft loading, passenger step
and air bridge operations, baggage handling,
aircraft load control and cargo and mail delivery.
•The company is also contracted to operate
passenger, staff and other bus services for the
Airport Authority.
•With over 30 airline customers, the company
increased its market share during the year
despite intense competition.
•HAS handled 60,000 flights and achieved a
satisfactory profit.
Review of Operations