Cathay Pacific 2007 Annual Report Download - page 6

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2007 in Review
CATHAY PACIFIC
Dragonair integration
• Work continued to bring the operations of Cathay
Pacific and Dragonair closer together following the
September 2006 deal that saw Dragonair become a
wholly owned subsidiary. Both cost and revenue
synergies have been realised along with significant
benefits for passengers and the Hong Kong hub.
• Connection times for the carriers were reduced,
making it easier for passengers to travel between
the two networks.
• Dragonair has added six destinations with scheduled
flights to Busan, Fukuoka, Kathmandu, Phuket and
Sendai and a daily charter service to Taichung.
Additional codeshare services were introduced
between Cathay Pacific and Dragonair.
• The majority of Dragonair destinations now have, as a
minimum, a daily service. This provides more options
for travellers connecting through the Hong Kong hub
to or from Cathay Pacific’s international network.
• Dragonair’s premium passengers enjoyed their first
full year as part of the Marco Polo Club, while a
change in policy means lounge users can access the
facilities of either airline.
• Dragonair became an affiliate member of the
oneworld alliance on 1st November 2007.
• As part of the shareholder restructuring that saw
Dragonair join the Cathay Pacific Group, Air China
became a strategic partner. Work is ongoing in a
number of areas to increase cooperation with the
Mainland’s flagship carrier.
A major focus of 2007 was realising the synergies of the deal that brought Dragonair
into the Cathay Pacific Group as a wholly owned subsidiary. Work continued throughout
the year to improve connectivity between the two airlines, with a particular emphasis on
strengthening Dragonair’s existing services and adding new routes to its network.
The passenger operation saw a record number of customers flying. Revenue hit a new high
with a sharp increase in yield. Cargo demand was generally weaker than expected for much of
the year. High fuel prices continue to be a concern. During 2007 Cathay Pacific strengthened
both passenger and cargo services and took delivery of seven new aircraft, including five
new Boeing 777-300ERs. The Company announced further substantial aircraft orders.
Award-winning products and services
• In May we began rolling out our innovative new
three-class long-haul inflight product on our existing
long-haul fleet, featuring First Class suites, full-flat
beds with enhanced privacy in Business Class and
unique Economy Class seats that recline within their
own shell. All three cabins feature a brand new
state-of-the-art inflight entertainment system with
audio and video on demand.
• The new cabins have now been retrofitted into 10
aircraft while all seven new Boeing 777-300ERs
arrived with the product in place. The entire long-
haul fleet will feature the product by mid-2009.
• Three new Airbus A330-300 aircraft were fitted with
the new Business Class and Economy Class seats.
• We moved to the new Terminal 2 at Tokyo’s Narita
International Airport in January 2007, opening a
bigger lounge with improved facilities. We also
collaborated with our oneworld partners Qantas and
British Airways in opening a joint two-class lounge in
the Tom Bradley International Terminal in Los Angeles.
• Cathay Pacific was named “Airline of the Year” by
leading regional industry publication TTG Asia, also
taking the “Best North Asia Airline” award. Cathay
Pacific was also voted “Best Transpacific Airline” in
the OAG 25th Annual Awards.
• In Hong Kong, we received several awards from
leading publications including the “Best Airline”
honour from Next and Capital magazines.
• We collected a number of other awards – for
engineering, advertising, inflight sales and our cargo
operation – that highlighted our high standards and
quest for excellence across all aspects of our operation.
Cathay Pacific Airways Limited Annual Report 2007
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