Cathay Pacific 2007 Annual Report Download - page 26

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• AHK currently operates a fleet of eight Airbus A300-
600F freighters.
• During the year AHK further expanded its overnight
express cargo network to Beijing and Shanghai,
increasing the number of cities served in Asia to 10.
Services to Manila commenced at the beginning
of 2008.
• With its network expansion, capacity increased by
23.1%. Load factor decreased by 0.9 percentage
point and yield decreased by 6.6%.
• AHK recorded a higher profit in 2007 despite the
adverse impact of higher fuel prices.
Cathay Pacific Catering Services (H.K.)
Limited (“CPCS”)
• CPCS, a wholly owned subsidiary, is the principal
flight kitchen in Hong Kong.
• The company produced a record 21.4 million meals
in 2007 and accounts for 63.4% of the airline
catering market in Hong Kong. Business volume
increased by 3.2% over 2006.
• Increased food costs and a weak dollar impacted
the profit margin which reduced from 2006.
• The performance of other inflight catering kitchens
in Asia and Canada were encouraging with higher
profits than in 2006.
Hong Kong Airport Services Limited (“HAS”)
• HAS, a wholly owned subsidiary, is the largest
franchised ramp handling company at Hong Kong
International Airport (“HKIA”).
• The number of flights handled grew 5.9% to a new
record.
• Productivity initiatives have been successfully
implemented following an operational review. This
review will be expanded and will continue into 2008.
Hong Kong International Airport Services
Limited (“HIAS”)
• HIAS is a wholly owned subsidiary which provides
airport ground handling services in Hong Kong to
Dragonair and other airlines.
• The company handled 32,712 flights in 2007.
• The company recorded a satisfactory result with an
improved profit margin in 2007.
Air China Limited (“Air China”)
• Air China, in which Cathay Pacific owns 18.1%,
is the national flag carrier and leading provider of
passenger, cargo and other airline related services
in Mainland China.
• The airline serves 83 domestic and 48 international
destinations, connecting 33 countries and regions in
the world.
• The Group has two representatives on the Board of
Director of Air China and equity accounts for its
share of Air China’s profit.
• The Group’s share of Air China’s profit is based on
accounts drawn up three months in arrears and
consequently the 2007 annual results include Air
China’s results for the 12 months ended 30th
September 2007.
• The airline made a satisfactory profit in this
reporting period.
Hong Kong Aircraft Engineering Company
Limited (“HAECO”)
• Cathay Pacific holds a 27.5% interest in HAECO, a
direct 9.1% in HAECO’s subsidiary Taikoo (Xiamen)
Aircraft Engineering Company Limited (“TAECO”)
and a direct 8.0% of Taikoo (Xiamen) Landing Gear
Services Limited (“TALSCO”). The HAECO group
provides a range of aviation maintenance and repair
services. Its most substantial operations are aircraft
maintenance and modification work in Hong Kong
and Xiamen and Rolls Royce engine overhaul work
performed by Hong Kong Aero Engine Services
Limited (“HAESL”).
• The profit attributable to HAECO shareholders
increased by 26.7% to HK$1,073 million in 2007,
driven primarily by the growth of heavy maintenance
operations in both Hong Kong and Xiamen whilst
HAESL also recorded a satisfactory growth in
engine overhaul.
Financial Review
Cathay Pacific Airways Limited Annual Report 2007
24