Cathay Pacific 2006 Annual Report Download - page 13

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Comments by region are as follows:
North Asia
• The addition of a fifth daily flight to Seoul in January
generated a growth in outbound traffic from Korea.
The country remains 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 in December,
giving customers more choice and greater flexibility.
• We also codeshare with Dragonair on its new
service to Busan, Korea’s second city, which was
launched in January 2007.
• Our performance in the Japan market remained
steady, with some growth in the number of tourists
flying to Hong Kong.
• We enjoyed high load factors to Taiwan throughout
2006, although strong competition had a negative
impact on yield.
South West Pacific and South Africa
• Two new flights a week were added to Adelaide in
June, bolstering our presence in South Australia.
• The Auckland service went twice-daily for the winter
schedule, helping to match seasonal demand.
• Closer economic ties between South Africa
and Mainland China boosted demand on our
Johannesburg service, while strong corporate
traffic boosted yield on the route.
South East Asia and Middle East
• In April, we began three direct flights to Penang
each week instead of routing all flights through
Kuala Lumpur. The change proved popular with
leisure travellers.
• Passenger traffic to and from the Philippines was
strong throughout the year, with a number of extra
flights mounted to Cebu to meet high demand.
• Strong competition continues to impact our
Singapore business, though demand remains high
and we have seen some yield improvement.
Europe
• Demand remained high from business travellers
on the London route. However increased
competition put pressure on the economy class
load factor and yield.
• We added three flights to Frankfurt, making it a
10-times-a-week service, and turned Rome into a
daily service with two more flights a week.
North America
• We increased our capacity to North America by
10.9% in 2006. Load factors were not particularly
high but yields improved on all routes.
• Demand was strong in the premium cabins to all
North American destinations.
• The introduction of new Boeing 777-300ER aircraft
from September 2007 will allow more direct
services on ultra long haul North American flights
with an increased payload.
11
Cathay Pacific Airways Limited Annual Report 2006
Review of Operations Passenger Services