Cathay Pacific 2002 Annual Report Download - page 14

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Cathay Pacific Airways Limited Annual Report 2002 11
Hong Kong Aircraft Engineering
Company Limited (“HAECO”)
•HAECO, in which Cathay Pacific holds a 27%
interest, provides aircraft maintenance,
modification and overhaul services at Hong
Kong International Airport.
•The company achieved a consolidated profit
after tax of HK$465 million, 49% higher than
2001, mainly reflecting the release of provisions,
cost savings and improved profits from joint
ventures.
•The number of flights handled by the line
maintenance division in Hong Kong increased
while heavy airframe maintenance and
modification activity in the hangar remained
high.
•Taikoo (Xiamen) Aircraft Engineering Company
Limited, 49% owned by HAECO and 9% owned
by Cathay Pacific, had a profitable year with
continued high usage of its hangar facilities. A
third hanger will be completed in 2003,
increasing capacity by 50%.
•Hong Kong Aero Engine Services Limited,
HAECO’s joint venture with Rolls-Royce plc and
SIA Engineering Pte Limited, continued to
achieve good results with high workloads.
Hong Kong Dragon Airlines Limited (“Dragonair”)
ASK/ATK* (million) Load factor (%) Yield
2002 2001 Change 2002 2001 Change Change
Passenger services 6,657 5,576 +19.4% 65.3 66.7 -1.4%pt -4.8%
Cargo services 814 552 +47.5% 79.5 71.1 +8.4%pt -2.3%
•Dragonair, in which Cathay Pacific holds 19%,
operates passenger services to 28 destinations
in Asia, including 18 major cities in Mainland
China. Dragonair also provides freighter services
to seven destinations in Europe, Middle East,
North Asia and Mainland China.
•Dragonair reported a higher profit mainly due
to an increase in traffic and improved freighter
performance, particularly in the second half of
the year.
•Passenger numbers increased by 19.2%. With
a 19.4% increase in capacity, passenger load
factor decreased by 1.4 percentage points.
Passenger yield decreased by 4.8% due to weak
currencies and intense market competition.
•The airline carried 193,000 tonnes of cargo,
representing a growth of 59.6%. Cargo load
factor increased by 8.4 percentage points to
79.5%. Cargo yield decreased by 2.3% due
mainly to the withdrawal of the fuel surcharge
and more lower yield transhipment traffic.
•Dragonair commenced a 22 times weekly
passenger service to Taipei in July. Weekly
passenger frequencies to Beijing and Shanghai
were increased to 42 and 56 respectively since
the commencement of the summer schedule.
Additional flights were operated to Chengdu,
Chongqing, Dalian, Hangzhou, Kunming,
Nanjing, Ningbo and Xiamen in order to cope
with higher demand during the summer season.
*
Capacities of passenger and cargo services are measured in available seat kilometres (“ASK”) and available tonne kilometres (“ATK”) respectively.
Review of Operations