Cathay Pacific 2003 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2003 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 76

  • 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
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

12 Cathay Pacific Airways Limited Annual Report 2003
Review of Operations
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$345 million, 25.8% below last
year, reflecting the effect of the SARS
outbreak on business volumes.
•TAECO, 49% owned by HAECO and 9%
owned by Cathay Pacific, had a profitable
year. A third hangar was opened in 2003.
•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
2003 2002 Change 2003 2002 Change Change
Passenger services 6,483 6,657 -2.6% 59.4 65.3 -5.9%pt -8.6%
Cargo services 1,069 814 +31.3% 80.4 79.5 +0.9%pt +8.6%
*
Capacities of passenger and cargo services are measured in available seat kilometres (“ASK”) and available tonne kilometres (“ATK”) respectively.
•Dragonair, in which Cathay Pacific holds a
19% interest, offers passenger services to
28 destinations in Asia, including 20 in
Mainland China. Dragonair also provides
freighter services to seven destinations in
Europe, Middle East, Japan, Taiwan and
Mainland China.
•Dragonair’s result was seriously affected by
the SARS outbreak. However, the company
returned to profit as the demand for
passenger travel recovered in the second half
of the year.
•Dragonair recorded an 11.1% decrease in
passenger numbers in 2003. Passenger yield
decreased by 8.6% as a result of special
offers to stimulate passenger traffic.
Passenger load factor, despite flight
cancellations, was down by 5.9 percentage
points to 59.4% in 2003.
•Cargo services were less affected by the
SARS outbreak. The company carried 269,980
tonnes of cargo in 2003, 39.5% higher than
last year. Cargo load factor increased by
0.9 percentage point to 80.4% while capacity
increased by 31.3% as a result of the third
freighter joining the fleet in late 2002. Cargo
yield increased by 8.6% due to a higher
proportion of regional freighter services.
•From the winter season, Dragonair increased
weekly frequencies of passenger services
to Beijing and Shanghai to 56 and 74
respectively. To cope with growing traffic
demand, frequencies on most Mainland China
routes were also increased. The company
commenced its twice daily passenger service
to Bangkok in November. Services to Sendai
and Hiroshima have been suspended since
the SARS outbreak in April. The joint venture
service with Malaysian Airlines to Kuching
was also terminated in April.