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Stock code: 00293
ANNUAL REPORT 2006

Table of contents

  • Page 1
    ANNUAL REPORT 2006 Stock code: 00293

  • Page 2
    ...as one of the world's leading global transportation hubs. In addition to our ï¬,eet of 102 wide-bodied aircraft, these investments include catering, aircraft maintenance and ground handling companies in addition to our corporate headquarters, Cathay Pacific City, at Hong Kong International Airport.

  • Page 3
    ... all-cargo carrier offering scheduled services in the Asian region. Cathay Pacific and its subsidiaries employ more than 18,600 people in Hong Kong. The airline is listed on The Stock Exchange of Hong Kong Limited as is its major shareholder. We are a founding member of the oneworld global alliance...

  • Page 4
    ... Passenger yield Cargo carried Cargo and mail load factor Cargo and mail yield Cost per ATK Cost per ATK without fuel Aircraft utilisation On-time performance Cathay Pacific Airways Limited Annual Report 2006 Cathay Pacific 2006 2005 Change Million '000 % HK cents '000 tonnes % HK$ HK$ HK$ Hours...

  • Page 5
    ... key markets contributed to a 3.4% fall in yield. 2006 was a landmark year for Cathay Pacific in many ways. The airline received another " Airline of the Year 2006" award - from leading industry journal Air Transport Chairman Hong Kong, 7th March 2007 Cathay Pacific Airways Limited Annual Report...

  • Page 6
    ... Hong Kong's position as a leading international aviation hub. • Developments since the integration began include the announcement of two new Dragonair Cathay Pacific Airways Limited Annual Report 2006 • Following the restructuring, Air China has become a strategic partner of Cathay Pacific...

  • Page 7
    ... on ultra long haul routes. Travel Trade Gazette and "Best Inflight Travel Retailer in Asia Pacific" in the Raven Fox Awards. Hub development • We added a new online destination in December with the launch of a daily service to Shanghai. • Two more destinations - Kota Kinabalu and Phuket - were...

  • Page 8
    ... phase of our online shopping site, allowing passengers to pay for inflight purchases using Asia Miles. Cathay Pacific Airways Limited Annual Report 2006 Award winning products and services • Dragonair was voted "Best Airline - China" for the fifth consecutive year in the international Skytrax...

  • Page 9
    ... to become an affiliate member of oneworld in 2007 . AIR HONG KONG • AHK took delivery of two new Airbus A300-600F freighters in May and June 2006, taking its fleet size to eight. • The carrier's seventh freighter replaced the wet lease operation to Bangkok and Penang. The eighth freighter...

  • Page 10
    ... 8 8 Cathay Pacific Airways Limited Annual Report 2006 Aircraft on 7 .5 year operating leases. One aircraft under reconfiguration. Aircraft on 8 and 9 year operating leases. Two aircraft under reconfiguration. Two aircraft on 10 year operating leases. Purchase rights for aircraft delivered by...

  • Page 11
    Review of Operations Passenger Services CATHAY PACIFIC In 2006 we surpassed previous passenger records, with our highest ever revenue and passenger numbers on an average load factor of 79.9%. Passenger demand remained buoyant throughout the year and strong corporate demand helped to drive up yield...

  • Page 12
    Cathay Pacific's award-winning service style is designed to make every one of our customers feel special.

  • Page 13
    ...popular as a leisure destination for Hong Kong travellers. • We increased our presence in Mainland China by adding a new daily service to Shanghai in December. • A new codeshare arrangement with Dragonair - applying on flights to Beijing, Shanghai, Xiamen and Tokyo in North Asia - was introduced...

  • Page 14
    Review of Operations Passenger Services DRAGONAIR It was a steady year for Dragonair, with additional ï¬,ights to Beijing and various secondary destinations in Mainland China mounted, and a new destination, Phuket, added. The average load factor for the year was 67.8% and passenger revenue growth...

  • Page 15
    ... kept revenue growth on the Taiwan route behind capacity growth. • The Tokyo route benefited from an enhanced schedule and a new codeshare arrangement with Cathay Pacific. South East Asia and Middle East • Flights began to Phuket in December, the first destination launch for Dragonair since the...

  • Page 16

  • Page 17
    Cathay Pacific's popular fashion show Walking on Air showcases our stylish uniforms from 1946 to the present. As part of the airline's 60th Anniversary celebrations in 2006, cabin staff on many of our ï¬,ights wore vintage uniforms.

  • Page 18
    ... Boeing 747-400BCF aircraft Cathay Pacific Airways Limited Annual Report 2006 • New freighter services were launched to Beijing, Chennai, Stockholm and Toronto, bringing the total number of freighter destinations to 31. • High fuel prices had a negative effect on the profitability of our older...

  • Page 19
    ... in 2007 and one more in 2008, increasing Dragonair's freighter fleet to nine by the end of 2008. • Two more freighter flights were added to Frankfurt in 2006, bringing the total to five frequencies per week. Cathay Pacific Airways Limited Annual Report 2006 service to Xiamen in November. 17

  • Page 20
    ...600 6,000 500 4,000 400 300 0 1H02 2H02 1H03 2H03 1H04 2H04 1H05 2H05 1H06 2H06 200 Cathay Pacific Airways Limited Annual Report 2006 Catering, recoveries and other services Cargo services Passenger services Passengers carried Cargo carried • Group turnover rose by 19.4% on 2005. 18

  • Page 21
    ...revenue effect on changes in yield and load factor is set out below: HK$M + 1 percentage point in passenger load factor + 1 percentage point in cargo and mail load factor + HK¢1 in passenger yield + HK¢1 in cargo and mail yield 419 175 712 71 Cathay Pacific Airways Limited Annual Report 2006 19

  • Page 22
    ...Cathay Pacific recoveries HK$9,501 million (2005: HK$6,529 million) are analysed as follows: Group* 2006 HK$M Staff Inflight service and passenger expenses Landing, parking and route expenses Fuel Aircraft maintenance Aircraft depreciation and operating leases Other depreciation and operating leases...

  • Page 23
    ... expansion. • Aircraft depreciation and operating leases increased due to the new aircraft deliveries and were partly offset by the return of two wet leased freighters. • Net finance charges decreased due to higher income from investment funds. • Cathay Pacific's cost per ATK increased from HK...

  • Page 24
    ... Hong Kong Aircraft Engineering Company Limited reported a higher profit than 2005. A review of their performance and operations is outlined below: Air China Limited ("Air China") • Air China is the national flag carrier and a leading provider of passenger, cargo and other airline related services...

  • Page 25
    ...growth is planned in 2007 to fully staff the new facilities. Hong Kong International Airport Services Limited ("HIAS") • Following the acquisition of Dragonair HIAS became a wholly owned subsidiary. The company provides airport ground handling services in Hong Kong to Dragonair and other airlines...

  • Page 26
    ...to HK$15,624 million. • Net borrowings increased by 80.6% to HK$16,348 million. • Funds attributable to Cathay Pacific shareholders increased by 30.3% to HK$45,554 million. • Net debt/equity ratio increased from 0.26 times to 0.36 times. 24 Cathay Pacific Airways Limited Annual Report 2006

  • Page 27
    ... in 2005 and 2006. 2006 HK$M Total revenue Less: Purchases of goods and services Value added by the Group Add: Share of profits of associates Total value added available for distribution Applied as follows: To employees - Salaries and other staff costs To governments - Corporation taxes To providers...

  • Page 28
    ... Limited and Hong Kong Aircraft Engineering Company Limited, and a Director of Swire Properties Limited, The Hongkong and Shanghai Banking Corporation Limited and Air China Limited. He joined the Swire group in 1978 and in addition to Hong Kong has worked for the group in Australia and Papua New...

  • Page 29
    ...#, aged 43, has been Company Secretary since January 2006. He joined the Swire group in 1988. # Employees of the John Swire & Sons Limited group Member of the Remuneration Committee * Member of the Audit Committee + Cathay Pacific Airways Limited Annual Report 2006 Director of the Company since...

  • Page 30
    ... Activities Cathay Pacific Airways Limited (the "Company") is managed and controlled in Hong Kong. As well as operating scheduled airline services, the Company and its subsidiaries (the "Group") are engaged in other related areas including airline catering, aircraft handling and aircraft engineering...

  • Page 31
    ... on normal commercial terms in the ordinary course of the business of both parties. Major transaction Cathay Pacific Aircraft Services Limited ("CPAS"), a wholly owned subsidiary of the Company, entered into a purchase agreement with The Boeing Company on 22nd June 2006 for the acquisition of six...

  • Page 32
    ... of the Company under the Listing Rules. The acquisition of 38,551,808 Dragonair shares from Swire Pacific, the acquisition of 142,482,484 Dragonair shares from CITIC Pacific, the allotment of 51,402,411 new shares of the Company to Swire Cathay Pacific Airways Limited Annual Report 2006 these...

  • Page 33
    ...Company provides cargo capacity for the carriage of DHL's air express materials between Hong Kong and Beijing, Nagoya and Shanghai and acts as the agent for DHL to sell reserved space surplus to DHL's requirements. Payment is made in cash by DHL to the Company against an invoice presented at the end...

  • Page 34
    ... TAECO provide services to the Company's aircraft fleet. The services comprise line maintenance, base maintenance, comprehensive stores and logistics support, component and avionics overhaul, material supply, engineering Cathay Pacific Airways Limited Annual Report 2006 Company. The transactions...

  • Page 35
    ...the shares of Cathay Pacific Airways Limited: No. of shares Philip Chen Derek Cridland Tony Tyler 9,000 17 ,000 5,000 Percentage of issued capital 0.00023 0.00043 Cathay Pacific Airways Limited Annual Report 2006 0.00013 Other than as stated above, no Director or chief executive of Cathay Pacific...

  • Page 36
    ...948,122,554 Cathay Pacific Airways Limited Annual Report 2006 Public ï¬,oat From information publicly available to the Company and within the knowledge of its Directors, at least 25% of the Company's total issued share capital are held by the public at all times. Auditors KPMG retire and, being...

  • Page 37
    ... shareholders. These include: financial statements, dividend policy, significant changes in accounting policy, the annual operating budgets, material contracts, major financing arrangements, major investments, risk management strategy and treasury policies. The functions of the Board and the powers...

  • Page 38
    ... Under the Securities Code, Directors of the Company are required to notify the Chairman and receive a dated written acknowledgement before dealing in Cathay Pacific Airways Limited Annual Report 2006 and is responsible to the Board for overseeing the day-to-day operation of the Company. It is...

  • Page 39
    ... after three years' service, a bonus related to the profit of the overall Swire group. The provision of housing affords ease of relocation either within Hong Kong or elsewhere in accordance with the needs of the business and as part of the training process whereby managers gain practical experience...

  • Page 40
    ... year with the Audit Committee. In addition to its agreed annual schedule of work, the Department conducts other special reviews as required. The Internal Audit Manager has direct access to the Audit Committee. Audit reports are sent to the Chief Operating Officer, the Finance Director, external...

  • Page 41
    ... can be addressed to the Corporate Communication Department whose contact details are given on page 96. In order to promote effective communication, the Company maintains its website at www.cathaypacific.com on which financial and other information relating to the Company and its business is...

  • Page 42
    ... passengers, staff, investors and the community at large, we undertook a stakeholder dialogue exercise in 2006. This helped to identify the key issues for our first standalone Corporate Social Responsibility ("CSR") Report, which is now available at Our signature youth-development programme in Hong...

  • Page 43
    ... such as climate change as well as local environmental concerns including clean air and waste management. The site provides numerous green ideas that staff can adopt both at home and in the office. Cathay Pacific Airways Limited Annual Report 2006 comprehensive environment-specific site on the 41

  • Page 44
    ... passengers and staff is our highest priority, and our mission is to make Cathay Pacific Airways the safest airline in the world. Every effort is made to ensure that we operate in a manner that safeguards the health and safety of all Cathay Pacific Airways Limited Annual Report 2006 corporate good...

  • Page 45
    ... - especially amongst cabin crew. At Cathay Pacific City we offer on-site fitness programmes, health promotion and work injury prevention workshops, and provide an Employee Assistance Programme that offers confidential counselling. We review our human resource and remuneration policies regularly in...

  • Page 46
    ... then ended, and a summary of significant accounting policies and other explanatory notes. Directors' responsibility for the accounts The Directors of the Company are responsible for the preparation and the true and fair presentation of these accounts in accordance with Hong Kong Financial Reporting...

  • Page 47
    ...with the Group's share of the results and net assets of its in subsidiaries are stated at cost less any impairment loss recognised. The results of the basis of dividends received and receivable. Cathay Pacific Airways Limited Annual Report 2006 subsidiaries are accounted for by the Company on 45

  • Page 48
    ... in associates are stated at cost less any impairment loss recognised and loans to those companies. 4. Foreign currencies Foreign currency transactions entered into during the year are translated into Hong Kong dollars at the market rates ruling at the relevant transaction dates whilst the following...

  • Page 49
    ... Long-term loans, finance lease obligations and trade and other payables are stated at amortised cost. Cathay Pacific Airways Limited Annual Report 2006 Where long-term liabilities have been defeased by the placement of security deposits, those liabilities and deposits (and income and charge...

  • Page 50
    ... rates, interest rates or jet fuel prices, any fair value change is accounted for as follows: Cathay Pacific Airways Limited Annual Report 2006 Arrangements for staff retirement benefits vary from country to country and are made in accordance with local regulations and customs. The retirement...

  • Page 51
    ...and operating decisions or where the Group and the party are subject to common control. The Group's associates, joint ventures and key management personnel are also considered to be related parties of the Group. Cathay Pacific Airways Limited Annual Report 2006 Replacement spares and labour costs...

  • Page 52
    ... HK$M 2005 HK$M 2006 US$M 2005 US$M Turnover Passenger services Cargo services Catering, recoveries and other services Total turnover Expenses Staff Inflight service and passenger expenses Landing, parking and route expenses Fuel Aircraft maintenance Aircraft depreciation and operating leases...

  • Page 53
    ...Cathay Pacific Airways Limited Annual Report 2006 The accounts are prepared and presented in HK$, the functional currency. The US$ figures are shown only as supplementary information and are translated at HK$7.8. The notes on pages 58 to 89 form part of these accounts. Christopher Pratt Director...

  • Page 54
    ... portion of long-term liabilities Related pledged security deposits Net current portion of long-term liabilities Trade and other payables Unearned transportation revenue Taxation Net current liabilities Net assets CAPITAL AND RESERVES Cathay Pacific Airways Limited Annual Report 2006 8 9 10 11 12...

  • Page 55
    ...Net increase in liquid funds other than cash and cash equivalents Net cash outï¬,ow from investing activities Financing activities New financing Net cash benefit from financing arrangements Shares issued Loan and finance lease repayments Security deposits placed Dividends paid - to shareholders - to...

  • Page 56
    ... directly in equity Profit for the year Total recognised profit/(loss) for the year 2005 final dividend 2006 interim dividend 2006 special dividend Acquisition of minority interests Dividends paid to minority interests Issue of new shares Cathay Pacific Airways Limited Annual Report 2006 676 26...

  • Page 57
    ...2005 Attributable to Cathay Pacific shareholders Non-distributable Cash Capital Investment flow redemption revaluation hedge reserve and reserve reserve others HK$M HK$M HK$M Minority interests Total equity Share Retained capital profit HK$M HK$M Share premium HK$M Total HK$M HK$M HK$M At 31st...

  • Page 58
    Company Statement of Changes in Equity for the year ended 31st December 2006 Non-distributable Share capital HK$M Retained profit HK$M Share premium HK$M Investment revaluation reserve HK$M Cash ï¬,ow hedge reserve HK$M Capital redemption reserve HK$M Total equity HK$M At 1st January 2006 ...

  • Page 59
    ... - - - (267) (267) - (267) - - - - 202 1,210 (165) 441 - 1,486 - 1,486 - - - - 65 21 1,210 (165) 441 (267) 1,219 2,371 3,590 (1,520) (676) 78 (2,118) 21,687 The notes on pages 58 to 89 form part of these accounts. Cathay Pacific Airways Limited Annual Report 2006 57

  • Page 60
    ... Account 1. Turnover Turnover comprises revenue from transportation services, airline catering, recoveries and other services provided to third parties. (a) Primary reporting by geographical segment 2006 HK$M 2005 HK$M Turnover by origin of sale: North Asia - Hong Kong and Mainland China - Japan...

  • Page 61
    ... supporting services which supplement the Group's main operating business are included in unallocated revenue. Analysis of net assets by business segment: The major revenue earning asset is the aircraft fleet which is jointly used by the passenger services and cargo services segments. Management...

  • Page 62
    ...HK$M Net interest charges comprise: - Obligations under finance leases - Interest income on related security deposits, notes and bonds 1,434 (609) 825 - Bank loans and overdrafts - Other loans wholly repayable within five years 326 58 1,209 Income from liquid funds: - Funds with investment managers...

  • Page 63
    ... to Cathay Pacific shareholders, a profit of HK$3,028 million (2005: HK$2,371 million) has been dealt with in the accounts of the Company. 6. Dividends 2006 HK$M 2005 HK$M 2006 interim dividend paid on 3rd October 2006 of HK¢20 per share (2005: HK¢20 per share) 2006 special dividend paid...

  • Page 64
    Notes to the Accounts Balance Sheet 8. Fixed assets Aircraft and related equipment Owned HK$M Other equipment Owned HK$M Buildings Owned HK$M Leased HK$M Leased HK$M Total HK$M Group Cost At 1st January 2006 Exchange differences Additions Purchase of a subsidiary Disposals Transfers At 31st ...

  • Page 65
    Notes to the Accounts Balance Sheet 8. Fixed assets (continued) Aircraft and related equipment Owned HK$M Other equipment Owned HK$M Buildings Owned HK$M Leased HK$M Leased HK$M Total HK$M Company Cost At 1st January 2006 Additions Disposals Transfers At 31st December 2006 At 1st January ...

  • Page 66
    ...depreciation is provided on these advance payments. (d) Security, including charges over the assets concerned and relevant insurance policies, is provided to the leasing companies or other parties that provide the underlying finance. Further information is provided under note 13 to the accounts. 64

  • Page 67
    .... Management believes that any reasonably foreseeable change in any of the above key assumptions would not cause the carrying amount of goodwill to exceed the recoverable amount. Cathay Pacific Airways Limited Annual Report 2006 The addition of the goodwill relates to the acquisition of Dragonair...

  • Page 68
    ... to Cathay Pacific shareholders for the year, HK$28 million was Dragonair's profit shared by the Group since the acquisition date. The Group's turnover and profit attributable to Cathay Pacific shareholders for the year would be HK$68,896 million Cathay Pacific Airways Limited Annual Report 2006...

  • Page 69
    Notes to the Accounts Balance Sheet 11. Associates Group 2006 HK$M Company 2005 HK$M 2006 HK$M 2005 HK$M Hong Kong listed shares at cost (Market value: HK$13,763 million, 2005: HK$2,716 million) Unlisted shares at cost Share of net assets - listed in Hong Kong - unlisted Goodwill Less: ...

  • Page 70
    Notes to the Accounts Balance Sheet 12. Other long-term receivables and investments Group 2006 HK$M Company 2005 HK$M 2006 HK$M 2005 HK$M Investments at fair value - listed in Hong Kong - unlisted Leasehold land rental prepayments Loans and other receivables 132 1,139 1,685 450 3,406 2,489 981...

  • Page 71
    ... totalling HK$20,631 million and HK$16,561 million respectively (2005: HK$19,873 million and HK$19,873 million). Accordingly, these liabilities and the related funds, as well as related expenditure and income, have been netted off in the accounts. Cathay Pacific Airways Limited Annual Report 2006...

  • Page 72
    ... funds, as well as related expenditure and income, have been netted off in the accounts. (c) Long-term liabilities by currency at the year end are summarised below: Group 2006 HK$M Cathay Pacific Airways Limited Annual Report 2006 Company 2005 HK$M 2006 HK$M 2005 HK$M US dollar Euro Hong Kong...

  • Page 73
    ... benefit retirement schemes The Swire Group Retirement Benefit Scheme ("SGRBS") in Hong Kong, in which the Company and Cathay Pacific Catering Services (H.K.) Limited ("CPCS") are participating employers, provides resignation and retirement benefits to its members, which include the Company's cabin...

  • Page 74
    Notes to the Accounts Balance Sheet 14. Retirement benefits (continued) Group 2006 HK$M Company 2005 HK$M 2006 HK$M 2005 HK$M Movements in present value of funded obligations comprise: At 1st January Movements for the year - current service cost - interest cost - employees contributions - ...

  • Page 75
    ...The Group expects to make contributions of HK$265 million to the schemes in 2007 . (b) Defined contribution retirement schemes Staff employed by the Company in Hong Kong on expatriate terms are eligible to join a defined contribution retirement scheme, the CPA Provident Fund 1993. All staff employed...

  • Page 76
    ... Airways Limited Annual Report 2006 recognised to the extent that recoverability is considered probable. The provision in respect of certain lease arrangements equates to payments which are expected to be made during the years 2008 to 2017 (2005: 2007 to 2016) as follows: Group 2006 HK$M Company...

  • Page 77
    ...26 1 3,304 17. Liquid funds Group 2006 HK$M Company 2005 HK$M 2006 HK$M 2005 HK$M Short-term deposits and bank balances Short-term deposits maturing beyond three months when placed Funds with investment managers - debt securities listed outside Hong Kong - bank deposits Other liquid investments...

  • Page 78
    ... 108 2,949 2,226 449 127 2,802 19. Share capital 2006 Number of shares HK$M 2005 Number of shares HK$M Authorised (HK$0.20 each) At 1st January Additions At 31st December Issued and fully paid (HK$0.20 each) Cathay Pacific Airways Limited Annual Report 2006 3,900,000,000 1,100,000,000 5,000,000...

  • Page 79
    ... the year: Exercise date Proceeds received (HK$) Weighted average closing share price immediately before the exercise date (HK$) 10/1/06 - 19/12/06 52,435,665 15.74 2005 7/1/05 - 25/11/05 77,814,990 14.46 Cathay Pacific Airways Limited Annual Report 2006 No option was granted under the Scheme...

  • Page 80
    ... at the time that the hedged transactions affect the profit and loss account. 21. Reconciliation of operating profit to cash generated from operations 2006 HK$M Cathay Pacific Airways Limited Annual Report 2006 2005 HK$M Operating profit Depreciation Amortisation of intangible assets Loss on...

  • Page 81
    ... inflow of cash and cash equivalents in respect of the purchase of a subsidiary (863) 957 94 - - - 863 8,769 546 106 23. Analysis of cash and cash equivalents HK$M HK$M Cathay Pacific Airways Limited Annual Report 2006 2006 Short-term deposits and bank balances Bank overdrafts 5,796 (29) 5,767...

  • Page 82
    ...984 9,292 4,420 8,533 Cathay Pacific Airways Limited Annual Report 2006 For Directors employed by the Swire group, the remuneration disclosed represents the amount charged to the Company. Bonus is related to services for 2005 but paid and charged to the Company in 2006. Allowances and benefits of...

  • Page 83
    ... ranges: 2006 HK$'000 2005 Other staff 7,551 174 75 17 9 6 4 7 - 1 2 1 - - - 7,847 Director 11 - - 1 - 1 - 1 - - 1 - 1 1 - 17 Flight staff 7,337 443 487 183 156 134 40 4 1 8,785 Other staff 7,189 175 78 18 7 7 4 3 1 1 1 - - - - 7,484 Cathay Pacific Airways Limited Annual Report 2006 Director 14...

  • Page 84
    ... out in the normal course of business on commercial terms are summarised below: 2006 Associates HK$M 2005 Associates HK$M Other related parties HK$M Other related parties HK$M Turnover Aircraft maintenance costs Route operating costs Dividends received Fixed assets purchase 207 1,057 226 (241...

  • Page 85
    ...570 1,958 1,032 2,990 Operating lease commitments are shown in note 8 to the accounts. (b) Guarantees in respect of lease obligations, bank loans and other liabilities outstanding at the year end: Group 2006 HK$M Company 2005 HK$M 2006 HK$M 2005 HK$M Subsidiaries Associate Staff - 17 200 217...

  • Page 86
    ... outlined in notes 13 and 18 to the accounts. Settlement of Cathay Pacific Airways Limited Annual Report 2006 these liabilities as they fall due will primarily be through liquid funds being funds generated from operations. (c) Foreign currency risk As an international airline, the Group's revenue...

  • Page 87
    ... After five years years years one year HK$M HK$M HK$M HK$M Fixed/ ï¬,oating Group Bank loans Other loans Other loans Obligations under finance leases Obligations under finance leases Pledged security deposits Pledged security deposits Currency swap Interest rate swap Liquid funds Liquid funds Bank...

  • Page 88
    ...five one year years years years HK$M HK$M HK$M HK$M Fixed/ floating Company Bank loans Other loans Other loans Obligations under finance leases Obligations under finance leases Cathay Pacific Airways Limited Annual Report 2006 Effective interest rate (%) Total HK$M Floating Fixed Floating 4.08...

  • Page 89
    ... . Adoption of this new accounting standard will result in different disclosures with respect to financial instruments and financial risks. The accounting standard will have no impact on either the Cathay Pacific Airways Limited Annual Report 2006 results or financial position of the Group. 87

  • Page 90
    ... Aircraft acquisition facilitator Airline catering Travel reward programme Airline catering Issuer of SGD note 100 100 100 100 100 100 100 100 100 60* 100 Cathay Pacific Airways Limited Annual Report 2006 Hong Kong Computer network for interchange of air cargo related information Information...

  • Page 91
    ...and operation Air China Limited Cathay Kansai Terminal Services Company Limited Cebu Pacific Catering Services Inc. Ground Support Engineering Limited People's Republic of China Japan Philippines Hong Kong Percentage of issued capital owned 17 48 40* 50* Principal activities Airline Ground handling...

  • Page 92
    ... liabilities (excluding liquid funds and bank overdrafts) Retirement benefit obligations Deferred taxation Net assets Financed by: Funds attributable to Cathay Pacific shareholders Minority interests Total equity Per share Cathay Pacific Airways Limited Annual Report 2006 2005 HK$M 35,155 14...

  • Page 93
    ...4.1 0.8 3.6 0.85 0.36 12.0 12.6 2.7 6.4 0.71 0.30 2.2 2.0 1.1 1.5 0.77 0.46 14.5 16.4 2.3 14.4 0.63 0.30 7.6 8.0 2.1 3.1 0.88 0.47 (2.1) (2.1) (1.6) (2.2) 1.04 0.57 5.5 6.3 1.7 6.1 0.85 0.32 Cathay Pacific Airways Limited Annual Report 2006 9.75 9.29 9.63 9.40 9.80 8.31 7.75 8.02 91

  • Page 94
    ... Revenue load factor Passenger load factor Cargo carried Cargo and mail tonne kilometres Cargo and mail load factor Excess baggage carried Mail carried Length of scheduled routes network Destinations at year end Staff number at year end ATK per staff On-time performance* Departure (within 15 minutes...

  • Page 95
    ...- 30 85 8 6 9 - 3 - 26 79 8 4 9 - 3 - 24 75 7 3 7 - 2 - 19 64 6 3 5 - - - 14 62 5 2 5 - - - 12 62 7 - 6 - - - 13 59 7 - 5 - - - 12 Cathay Pacific Airways Limited Annual Report 2006 23 15 3 - 21 7 5 - 5 10 23 15 3 - 19 6 5 - 5 9 20 15 2 - 19 6 5 - 5 7 20 15 - - 19 4 5 - 5 7 12 14 - - 19...

  • Page 96
    ... Aug Sep Oct Nov Dec 2006 Hang Seng Index (HSI) Cathay Pacific share price 12 16,000 12,000 8 8,000 4,000 0 2006 Productivity* Cost per ATK HK$ ATK per HK$'000 staff cost Unit Aircraft utilisation Hours per day Cathay Pacific Airways Limited Annual Report 2006 2005 2004 2003 2002 2001...

  • Page 97
    ...the net operating expenses. Shareholders' funds = per share = Dividend cover = Profit/(loss) attributable to Cathay Pacific shareholders Dividends Operating profit/(loss) Net finance charges Borrowings Funds attributable to Cathay Pacific shareholders Cost per ATK Passenger/Cargo and mail yield...

  • Page 98
    ... in Hong Kong with limited liability. Investor relations For further information about Cathay Pacific Airways Limited, please contact: Corporate Communication Department Cathay Pacific Airways Limited 7th Floor, North Tower Cathay Pacific City Hong Kong International Airport Hong Kong Tel...

  • Page 99
    DESIGN: FORMAT LIMITED www.format.com.hk Printed in Hong Kong This report is printed on paper that is acid-free and elemental chlorine-free (ECF)

  • Page 100
    www.cathaypacific.com