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Cathay Pacific Airways Limited
Stock code: 00293
Annual Report 2009

Table of contents

  • Page 1
    Annual Report 2009 Cathay Pacific Airways Limited Stock code: 00293

  • Page 2
    ..., aircraft maintenance, ground handling companies and the corporate headquarters, Cathay Pacific City, at Hong Kong International Airport. Hong Kong Dragon Airlines Limited ("Dragonair"), an Asian regional airline registered and based in Hong Kong offering scheduled passenger and cargo services to...

  • Page 3
    ...Review 26 Directors and Officers 33 Directors' Report 35 Corporate Governance 42 Independent Auditor's Report 47 Cathay Pacific and its subsidiaries employ some 20,000 people in Hong Kong. Cathay Pacific is listed on The Stock Exchange of Hong Kong Limited, as are its substantial shareholders Swire...

  • Page 4
    ... Funds attributable to owners of Cathay Pacific Net borrowings Shareholders' funds per share Net debt/equity ratio HK$ million HK$ million HK$ Times 42,238 26,131 10.7 0.62 36,709 25,198 9.3 0.69 +15.1% +3.7% +15.1% -0.07 times Operating Statistics - Cathay Pacific and Dragonair 2009 Available...

  • Page 5
    ... in both Cathay Pacific and Dragonair, reducing operating costs and capital expenditure, introducing an unpaid leave scheme for staff, parking a number of aircraft, working to get concessions from suppliers and requesting a deferral of new deliveries from aircraft manufacturers. Fuel prices in the...

  • Page 6
    ... with Air China will bring many benefits in the years to come and we operate out of one of the world's premier aviation hubs, Hong Kong. We are deeply committed to our home city and remain highly confident about the future of Cathay Pacific. Christopher Pratt Chairman Hong Kong, 10th March...

  • Page 7
    ...Dragonair fleet is also undergoing a cabin refresh programme. • We opened a new first and business class lounge in Kuala Lumpur in June. • Dragonair began regular consultations with customer panels in Hong Kong, Beijing and Shanghai with a view to involving frequent flyers in product and service...

  • Page 8
    ... to five times a week with a new arrangement to operate the flights via Dhaka. • Fiji was added as a Cathay Pacific destination in December through a new codeshare service with Air Pacific. • Cathay Pacific launched a new weekly freighter service to Jakarta in January 2009. A three-timesweekly...

  • Page 9
    ... Internet booking system with features such as a fare calendar to all countries in which Cathay Pacific operates. • In December we launched a new redemption booking system featuring an "Award Calendar" to advise users of redemption availability on various dates. • The Self-Print Boarding Pass...

  • Page 10
    ... application was made available for users of iPhones, Blackberrys and other smart phones, enabling passengers to check in for flights, download City Guides and retrieve other useful travel information from Cathay Pacific and Dragonair mobile sites. • Development work on our new Passengers Services...

  • Page 11
    ... Up - Best Sustainability Report" from the ACCA HK Awards for Sustainability Reporting from the Association of Chartered Certified Accountants Hong Kong; the "Best Environmental Performance Airline 2009" award from the Centre for Asia Pacific Aviation; a Bronze Award in the "Hong Kong Awards for...

  • Page 12
    ... sale for people in underprivileged areas and conducting "English on Air" sessions for children of different ages. • Cathay Pacific once again celebrated Senior Citizens' Day in November by offering discounted fares for elderly travellers in Hong Kong and Macau. • Our team in Taiwan launched...

  • Page 13
    ... to align its structure more closely with the airline's business needs) was carried out in 2009. Suitable positions within the new structure could not be found for a total of 53 senior and middle managers in the department. • A Special Leave Scheme was introduced at Cathay Pacific and Dragonair as...

  • Page 14
    1 2009 in Review Fleet profile* Number as at 31st December 2009 Leased Aircraft type Owned Finance Operating Total '10 Firm orders '11 '12 and beyond Total '10 Expiry of operating leases '11 '12 '13 '15 and '14 beyond Purchase rights Aircraft operated by Cathay Pacific: A330-300 A340-300 747-...

  • Page 15
    ...the Board of Directors of Air China and equity accounts for its share of Air China's profit. Cathay Pacific Catering Services (H.K.) Limited ("CPCS") and overseas kitchens • CPCS, a wholly owned subsidiary, is the principal flight kitchen in Hong Kong. • CPCS produced 20.9 million meals in 2009...

  • Page 16
    ... 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 Group has one representative on the Board of Directors of HAECO and equity accounts for its share of HAECO's profit.

  • Page 17
    Cathay Pacific Airways Limited Annual Report 2009 1 2009 in Review • The HAECO group's employee headcount decreased marginally during the year to 12,615 at the end of 2009, reflecting the decline in business. The group will continue to train staff and improve productivity to remain ...

  • Page 18
    ... SERVICE Dedication. Joel Tuquib, Flight Attendant Renie Yuen, Service Leader '' '' It's not just something you do from nine to five - it's an attitude that affects every aspect of living. Nam Kyung Oh, Passenger Sales - Corporate Sales Coordinator IS LIFE. Sandy Ng, Passenger Sales Executive...

  • Page 19

  • Page 20
    1 Review of Operations PASSENGER SERVICES Cathay Pacific and Dragonair carried a total of 24.6 million passengers in 2009, a decrease of 1.6% from the previous year. Demand, in particular for premium class travel, was substantially reduced in the first three quarters of the year and we cut our ...

  • Page 21
    Cathay Pacific Airways Limited Annual Report 2009 1 Review of Operations PASSENGER SERVICES Home market - Hong Kong and Pearl River Delta • Our home market was deeply affected by the economic downturn, particularly by its effect on passenger demand for premium seats. Our front-end business ...

  • Page 22
    ... in cross-Strait flights to Mainland China which started to take effect in August. However, inbound business was more robust as a result of growing interest in Taiwan as a leisure destination for Hong Kong travellers. H1N1 had a significant adverse effect on demand on the Taiwan routes between May...

  • Page 23
    Cathay Pacific Airways Limited Annual Report 2009 1 Review of Operations CARGO SERVICES | ASIA MILES Demand for air cargo was substantially reduced as a result of the global economic downturn. All major markets were affected, particularly in the first half of the year, when the resultant drop in...

  • Page 24
    ... not destinations served. • On the positive side, the network was strengthened by the introduction of a new service to Jakarta and Ho Chi Minh City in January 2009 and a three-timesweekly service to Miami and Houston in March 2009, which gave us access to the increasingly important Latin American...

  • Page 25
    ... market. This new cobranded credit card offers frequent Mainland China travellers the ease of earning miles through automileage conversion, plus the opportunity to redeem airline tickets and other lifestyle rewards. • To support the growth of Asia Miles in Mainland China, a Beijing call centre...

  • Page 26
    Michael Spiegel, Cargo Manager - Germany & Eastern Europe '' Eiko Suenaga, Customer Services Officer '' Nigel Black, Senior Training Captain

  • Page 27
    ' '' Janet Jothi, Airport Services Supervisor '' David Belcastro, Senior First Officer

  • Page 28
    ... demand helped to constrain operating expenses in 2009. Turnover Group 2009 HK$M Passenger services# Cargo services# Catering, recoveries and other services Turnover # Includes relevant surcharges. Cathay Pacific and Dragonair 2008 (restated) HK$M 57,964 24,623 3,976 86,563 2009 HK$M 45,920 15,341...

  • Page 29
    Cathay Pacific Airways Limited Annual Report 2009  Financial Review Cathay Pacific and Dragonair • Passenger turnover decreased significantly, by 20.8% to HK$45,920 million, as a result of the economic downturn. The number of passengers carried decreased by 1.6% to 24.6 million and revenue ...

  • Page 30
    ... Review Operating expenses Group 2009 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 Commissions Exchange gain Others Operating expenses Net finance...

  • Page 31
    Cathay Pacific Airways Limited Annual Report 2009  Financial Review Cathay Pacific and Dragonair operating results analysis 2009 HK$M Airlines operating profit/(loss) before fuel hedging, non-recurring items and tax Profit on disposal of HAECO shares Realised and unrealised fuel hedging gains...

  • Page 32
    0 Financial Review Fuel expenditure and hedging A breakdown of the Group's fuel cost is shown below: 2009 HK$M Gross fuel cost Realised hedging (gains)/losses Unrealised mark to market (gains)/losses Net fuel cost Settlement and premium paid 20,107 (740) (2,018) 17,349 3,180 2008 HK$M 39,347 309 ...

  • Page 33
    ...changes of fuel prices on fuel hedging contracts shown above, the Group's operating profit is affected by the actual cost of buying fuel and the level of fuel surcharges. * This information supplements note 31(c) (iii) to the accounts. Taxation • The tax charge increased by HK$1,616 million to HK...

  • Page 34
    ...-term investments 23% Current assets Net debt and equity HK$ million Times 60,000 50,000 40,000 30,000 20,000 10,000 0 0.7 0.6 0.5 0.4 0.3 0.2 0.1 2005 2006 2007 2008 2009 Borrowings before and after derivatives HK$ million Funds attributable to owners of Cathay Pacific Net borrowings Net debt...

  • Page 35
    ...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 Guinea. HUGHES-HALLETT, James Edward#, aged 44, has been Finance Director of the Company since March 2009. He is...

  • Page 36
    ... May 2009. He is currently Chief Executive of The Hongkong and Shanghai Banking Corporation Limited, a Group Managing Director of HSBC Holdings plc and Deputy Chairman and a Non-Executive Director of HSBC Bank (China) Company Limited, and a Non-Executive Director of HSBC Bank Australia Limited, Hang...

  • Page 37
    Cathay Pacific Airways Limited Annual Report 2009  Directors' Report We submit our report and the audited accounts for the year ended 31st December 2009 which are on pages 48 to 97 . Company's share registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 ...

  • Page 38
    ... Share Transaction on 22nd October 2009, the Company's shareholding interest in HAECO decreased from 27 .45% to 15.00% and Swire Pacific's shareholding interest in HAECO increased from 33.52% to 45.96%. (b) The Company and its wholly owned subsidiaries Cathay Pacific China Cargo Holdings Limited...

  • Page 39
    ... Airways Limited Annual Report 2009  Directors' Report subscription and capital contribution, the equity interests of Air China, Fine Star and Cathay Pacific China Cargo Holdings in Air China Cargo will be 51%, 24% and 25% respectively (with premium contribution credited as capital reserve fund...

  • Page 40
    ...Cathay Pacific Loyalty Programmes Limited ("CPLP") with PCCW Teleservices (Hong Kong) Limited ("Teleservices"), Teleservices provides services to CPLP . The services comprise the provision of a service centre and handling of customer calls and related administration for the Company's frequent flyer...

  • Page 41
    ... from joint venture arrangements for the operation of passenger air transportation, code sharing arrangements, interline arrangements, aircraft leasing, frequent flyer programmes, the provision of airline catering, ground support and engineering services and other services agreed to be provided and...

  • Page 42
    ... Section 352 of the Securities and Futures Ordinance ("SFO") showed that Directors held the following beneficial interests (all being personal interests) in the shares of Cathay Pacific Airways Limited: No. of shares Cathay Pacific Airways Limited Philip Chen Ian Shiu Tony Tyler 9,000 1,000 5,000...

  • Page 43
    Cathay Pacific Airways Limited Annual Report 2009 1 Directors' Report Substantial shareholders The register of interests in shares and short positions maintained under Section 336 of the SFO shows that as at 31st December 2009 the Company had been notified of the following interests in the ...

  • Page 44
    .... Dayto-day management of the Company's business is delegated to the CE. Matters reserved for the Board are those affecting the Company's overall strategic policies, finances and shareholders. These include: financial statements, dividend policy, significant changes in accounting policy, the annual...

  • Page 45
    Cathay Pacific Airways Limited Annual Report 2009  Corporate Governance Hallett (5/6), Peter Kilgour (3/3), Kong Dong (0/6), Peter Lee (5/5), Vernon Moore (6/6), Raymond Or (1/2), Ian Shiu (6/6), John Slosar (6/6), Jack So (5/6), Tony Tyler (6/6), Tung Chee Chen (4/6), Peter Wong (3/4), Robert...

  • Page 46
    ... and approved by the Directors of the Board who are not connected with the Swire group, staff at various levels, including executive Directors, are seconded to the Company. Those staff report to and take instructions from the Board of the Company but remain employees of Swire. In order to be able to...

  • Page 47
    .... 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 auditors and the relevant...

  • Page 48
    ... informative and timely manner. All shareholders are encouraged to attend the annual general meeting to discuss matters relating to the Company. Any inquiries from shareholders can be addressed to the Corporate Communication Department whose contact details are given on page 104. In order to promote...

  • Page 49
    Cathay Pacific Airways Limited Annual Report 2009  Independent Auditor's Report To the shareholders of Cathay Pacific Airways Limited (Incorporated in Hong Kong with limited liability) We have audited the consolidated accounts of Cathay Pacific Airways Limited (the "Company") set out on pages ...

  • Page 50
    ... in catering, recoveries and other services Expenses Decrease in landing, parking and route expenses Increase in others Increase in taxation Increase/(decrease) in profit attributable to owners of Cathay Pacific Increase/(decrease) in earnings per share Group 2009 HK$M 2008 HK$M 2007 HK$M 2009 HK...

  • Page 51
    ... Pacific Airways Limited Annual Report 2009  Principal Accounting Policies 1. Basis of accounting (continued) During the year ended 31st December 2008, Air China made certain adjustments to its opening retained profits as at 1st January 2008 on adopting IFRIC 13 "Customer Loyalty Programmes...

  • Page 52
    ... on the interest rates implicit in the leases. Operating lease payments and income are charged and credited respectively to the profit and loss on a straight line basis over the life of the related lease. 5. Fixed assets and depreciation Fixed assets are stated at cost less accumulated depreciation...

  • Page 53
    Cathay Pacific Airways Limited Annual Report 2009 1 Principal Accounting Policies 8. Financial assets (continued) Funds with investment managers and other liquid investments which are managed and evaluated on a fair value basis are designated as at fair value through profit and loss. The ...

  • Page 54
    ... tax payments. 17. Frequent-flyer programme The Company operates a frequent-flyer programme called Asia Miles (the "programme"). As members accumulate miles by travelling on Cathay Pacific or Dragonair flights, part of the revenue from the initial sales transaction equal to the programme awards at...

  • Page 55
    ...) US$M Note 2009 HK$M 2009 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 Other...

  • Page 56
    ... security deposits Net current portion of long-term liabilities Trade and other payables Unearned transportation revenue Taxation Net current (liabilities)/assets Net assets CAPITAL AND RESERVES Share capital Reserves Funds attributable to owners of Cathay Pacific Minority interests Total equity...

  • Page 57
    Cathay Pacific Airways Limited Annual Report 2009  Company Statement of Financial Position at 31st December 2009 2008 (restated) HK$M 2007 (restated) HK$M 2008 (restated) US$M 2007 (restated) US$M Note 2009 HK$M 2009 US$M ASSETS AND LIABILITIES Non-current assets and liabilities Fixed ...

  • Page 58
    ... Payments for fixed and intangible assets Net cash outflow from investing activities Financing activities New financing Net cash benefit from financing arrangements Shares repurchased and issued Loan and finance lease repayments Security deposits placed Dividends paid - to owners of Cathay Pacific...

  • Page 59
    Cathay Pacific Airways Limited Annual Report 2009  Consolidated Statement of Changes in Equity for the year ended 31st December 2009 Minority interests Total equity Attributable to owners of Cathay Pacific Non-distributable Investment Share revaluation premium reserve HK$M HK$M Capital Cash ...

  • Page 60
    ... of Changes in Equity for the year ended 31st December 2009 Attributable to owners of Cathay Pacific Non-distributable Investment revaluation reserve HK$M Cash flow hedge reserve HK$M Capital redemption reserve and others HK$M Share capital HK$M Retained profit HK$M Share premium HK$M Total HK...

  • Page 61
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts 1. Turnover STATEMENT OF COMPREHENSIVE INCOME Turnover comprises revenue and surcharges from transportation services, airline catering, recoveries and other services provided to third parties. 2. Segment information (a)...

  • Page 62
    .... Inter-segment sales are based on prices set on an arm's length basis. (b) Geographical information 2009 HK$M 2008 (restated) HK$M Turnover by origin of sale: North Asia - Hong Kong and Mainland China - Japan, Korea and Taiwan Southwest Pacific and South Africa Europe Southeast Asia and Middle...

  • Page 63
    Cathay Pacific Airways Limited Annual Report 2009 1 Notes to the Accounts STATEMENT OF COMPREHENSIVE INCOME 3. Operating profit/(loss) 2009 HK$M 2008 (restated) HK$M Operating profit/(loss) has been arrived at after charging/(crediting): Depreciation of fixed assets - Leased - Owned ...

  • Page 64
    ... reviewed regularly to take into account changes in legislation, practice and status of negotiations (see note 30(d) to the accounts). A reconciliation between tax (charge)/credit and accounting profit/(loss) at applicable tax rates is as follows: 2009 HK$M 2008 (restated) HK$M Consolidated profit...

  • Page 65
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF COMPREHENSIVE INCOME 6. Other comprehensive income 2009 HK$M 2008 HK$M Cash flow hedges - recognised during the year - transferred to profit and loss - deferred tax recognised Revaluation surplus/(deficit) ...

  • Page 66
     Notes to the Accounts 10. Fixed assets STATEMENT OF FINANCIAL POSITION Aircraft and related equipment Owned HK$M Leased HK$M Other equipment Owned HK$M Leased HK$M Buildings Under Owned construction HK$M HK$M Total HK$M Group Cost At 1st January 2009 Exchange differences Additions Disposals...

  • Page 67
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF FINANCIAL POSITION 10. Fixed assets (continued) Aircraft and related equipment Owned HK$M Leased HK$M Other equipment Owned HK$M Leased HK$M Buildings Owned HK$M Total HK$M Company Cost At 1st January 2009 ...

  • Page 68
    ... 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 15 to the accounts. (e) Parked aircraft with no...

  • Page 69
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF FINANCIAL POSITION 11. Intangible assets Group Goodwill HK$M Computer systems HK$M Total HK$M Company Computer systems HK$M Cost At 1st January 2009 Additions At 31st December 2009 At 1st January 2008 ...

  • Page 70
    ... - Loan accounts - Current accounts 246 6,640 2,462 10,303 19,651 239 4,973 6,690 9,263 21,165 Principal subsidiaries are listed on page 96. 13. Associates Group 2009 HK$M 2008 (restated) HK$M 2007 (restated) HK$M 2009 HK$M Company 2008 HK$M 2007 HK$M Hong Kong listed shares at cost (Market...

  • Page 71
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF FINANCIAL POSITION 13. Associates (continued) In respect of the year ended 31st December 2009, Air China has been included in the consolidated accounts based on the most recently available accounts drawn up ...

  • Page 72
    ...Notes to the Accounts STATEMENT OF FINANCIAL POSITION 15. Long-term liabilities (continued) (a) Long-term loans Group 2009 HK$M 2008 HK$M Company 2009 HK$M 2008 HK$M Bank loans - secured - unsecured Other loans - secured - unsecured Amount due within one year included under current liabilities 52...

  • Page 73
    Cathay Pacific Airways Limited Annual Report 2009 1 Notes to the Accounts STATEMENT OF FINANCIAL POSITION 15. Long-term liabilities (continued) (b) Obligations under finance leases The Group has commitments under finance lease agreements in respect of aircraft and related equipment expiring ...

  • Page 74
    ... 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 75
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF FINANCIAL POSITION 17. Retirement benefits (continued) Group 2009 HK$M 2008 HK$M Company 2009 HK$M 2008 HK$M Net liability recognised in the statement of financial position: Present value of funded ...

  • Page 76
     Notes to the Accounts STATEMENT OF FINANCIAL POSITION 17. Retirement benefits (continued) Group 2009 HK$M 2008 HK$M 2007 HK$M 2006 HK$M 2005 HK$M Present value of funded obligations Fair value of plan assets Deficit/(surplus) Actuarial losses/(gains) arising on plan liabilities Actuarial (...

  • Page 77
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF FINANCIAL POSITION 18. Deferred taxation Group 2009 HK$M 2008 (restated) HK$M 2007 (restated) HK$M 2009 HK$M Company 2008 (restated) HK$M 2007 (restated) HK$M Deferred tax assets: - retirement benefits - ...

  • Page 78
    ... financial assets of the Group and the Company accounted for as held for trading amounted to HK$1,123 million (2008: HK$3,300 million) and HK$1,123 million (2008: HK$3,195 million) respectively. Group 2009 HK$M 2008 HK$M Company 2009 HK$M 2008 HK$M Analysis of trade debtors by age: Current One...

  • Page 79
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF FINANCIAL POSITION 20. Liquid funds Group 2009 HK$M 2008 HK$M Company 2009 HK$M 2008 HK$M Short-term deposits and bank balances Short-term deposits maturing beyond three months when placed Funds with ...

  • Page 80
    ... Scheme were flight deck crew who paid HK$1 each on acceptance of their share options and were granted options to subscribe for shares of the Company at a price not less than the higher of 80% of the average of the closing prices of the Company's shares on the Stock Exchange on the five trading days...

  • Page 81
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts STATEMENT OF FINANCIAL POSITION 23. Reserves Group 2009 HK$M 2008 (restated) HK$M 2007 (restated) HK$M 2009 HK$M Company 2008 (restated) HK$M 2007 (restated) HK$M Retained profit Share premium Investment revaluation ...

  • Page 82
    ... to the Accounts STATEMENT OF CASH FLOWS 24. Reconciliation of operating profit/(loss) to cash generated from operations 2009 HK$M 2008 (restated) HK$M Operating profit/(loss) Depreciation Amortisation of intangible assets Loss on disposal of fixed assets and intangible assets Profit on disposal...

  • Page 83
    Cathay Pacific Airways Limited Annual Report 2009 1 Notes to the Accounts DIRECTORS AND EMPLOYEES 27. Directors' and executive officers' remuneration (a) Directors' remuneration disclosed pursuant to the Listing Rules is as follows: Cash Basic salary/ Directors' fee* HK$'000 Non-cash Bonus ...

  • Page 84
    ...Executive Officers' remuneration disclosed as recommended by the Listing Rules is as follows: Cash Contributions to retirement schemes HK$'000 Non-cash Bonus paid into retirement schemes HK$'000 Basic salary HK$'000 Bonus HK$'000 Allowances & benefits HK$'000 Housing benefits HK$'000 2009 Total...

  • Page 85
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts DIRECTORS AND EMPLOYEES 28. Employee information (a) The five highest paid individuals of the Company included two Directors (2008: three) and three Executive Officers (2008: two), whose emoluments are set out in note 27...

  • Page 86
    ... refer to Directors' Report on pages 37 and 38. (ii) Under the HAECO Framework Agreement with HAECO, the Group paid fees to HAECO group in exchange for maintenance services provided to the Group's aircraft fleets. Service fees paid to HAECO group for the year ended 31st December 2009 were HK$1,891...

  • Page 87
    ...Guarantees given by the Company in respect of bank loan facilities of an associate at 31st December 2009 are disclosed in note 30 to the accounts. (e) There were no material transactions with Directors and Executive Officers except for those relating to shareholdings (Directors' Report and Corporate...

  • Page 88
    ... a compensating change in the market value of the hedged items. Exposure to foreign exchange rates, interest rates and jet fuel price movements are regularly reviewed and positions are amended in compliance with internal guidelines and limits. (a) Credit risk Management has a credit policy in place...

  • Page 89
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts SUPPLEMENTARY INFORMATION 31. Financial risk management (continued) (b) Liquidity risk The Group's policy is to monitor liquidity and compliance with lending covenants, so as to ensure sufficient liquid funds and ...

  • Page 90
    ...to the Accounts SUPPLEMENTARY INFORMATION 31. Financial risk management (continued) 2009 After one year but within two years HK$M After two years but within five years HK$M Within one year HK$M After five years HK$M Total HK$M Company Bank and other loans Obligations under finance leases Trade...

  • Page 91
    ... Airways Limited Annual Report 2009  Notes to the Accounts SUPPLEMENTARY INFORMATION 31. Financial risk management (continued) (c) Market risk (i) Foreign currency risk The Group's revenue streams are denominated in a number of foreign currencies resulting in exposure to foreign exchange rate...

  • Page 92
    0 Notes to the Accounts SUPPLEMENTARY INFORMATION 31. Financial risk management (continued) 2007 USD HK$M EUR HK$M TWD HK$M SGD HK$M RMB HK$M JPY HK$M Group Trade and other receivables (restated) Liquid funds Long-term loans Obligations under finance leases Trade and other payables (restated) ...

  • Page 93
    Cathay Pacific Airways Limited Annual Report 2009 1 Notes to the Accounts SUPPLEMENTARY INFORMATION 31. Financial risk management (continued) 2007 USD HK$M EUR HK$M TWD HK$M SGD HK$M RMB HK$M JPY HK$M Company Trade and other receivables (restated) Liquid funds Long-term loans Obligations ...

  • Page 94
    ... instruments. At the reporting date the interest rate profile of the interest-bearing financial instruments was as below: Group 2009 HK$M 2008 HK$M Company 2009 HK$M 2008 HK$M Fixed rate instruments Liquid funds Long-term loans Obligations under finance leases Interest rate and currency swaps Net...

  • Page 95
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts SUPPLEMENTARY INFORMATION 31. Financial risk management (continued) (iii) Fuel price risk Fuel accounted for 28% of the Group's operating expenses (2008: 50%). Exposure to fluctuations in the fuel price is managed by the...

  • Page 96
    ... Level 2 HK$M 2009 Level 3 HK$M 2009 Total HK$M Assets Investments at fair value - Listed - Unlisted Liquid funds - Funds with investment managers - Other liquid investments Derivative financial assets - - - 175 Liabilities Obligations under finance leases designated as at fair value through profit...

  • Page 97
    Cathay Pacific Airways Limited Annual Report 2009  Notes to the Accounts SUPPLEMENTARY INFORMATION 31. Financial risk management (continued) The movement during the year in the balance of level 3 fair value measurements is as follows: Group HK$M Company HK$M Investments at fair value - ...

  • Page 98
    ... Airline catering Travel reward programme Cargo terminal Issuer of SGD note 100 100 100 100 100 100 100 100 100 100 100 Global Logistics System (H.K.) Company Limited Guangzhou Guo Tai Information Processing Company Limited Hong Kong Airport Services Limited Hong Kong Aviation and Airport Services...

  • Page 99
    ... of China Japan Philippines Canada Hong Kong Airline 18# Cathay Kansai Terminal Services Company Limited Cebu Pacific Catering Services Inc. CLS Catering Services Limited Ground Support Engineering Limited Ground handling Airline catering Airline catering Airport ground engineering support and...

  • Page 100
    ... long-term payables Deferred taxation Net assets Financed by: Funds attributable to owners of Cathay Pacific Minority interests Total equity Per share Shareholders' funds EBITDA Earnings/(loss) Dividend Ratios Profit/(loss) margin Return on capital employed Dividend cover Cash interest cover* Gross...

  • Page 101
    Cathay Pacific Airways Limited Annual Report 2009  Statistics 2007 (restated) 2006 2005 2004 2003 2002 ... 2.3 7.3 0.63 0.30 statement of financial position summary for 2007 and 2008 and related ratios have been restated. The financial information for the period 2000-2006 has not been ...

  • Page 102
    ... and mail load factor Excess baggage carried Kilometres flown Block hours Aircraft departures Length of scheduled routes network Destinations at year end Staff number at year end ATK per staff On-time performance* Departure (within 15 minutes) Average aircraft utilisation* A320-200 A321-200 A330...

  • Page 103
    Cathay Pacific Airways Limited Annual Report 2009 101 Statistics 2007 2006 2005 2004 2003 2002 2001 2000 23,077 16,680 102,462 23,253 81,801 75.6 79.8 1,672 8,900 66.7 2,310 422 ...

  • Page 104
    ...) 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Productivity* Cost per ATK ATK per HK$'000 staff cost Aircraft utilisation Share prices High Low Year-end Price ratios (Note) Price/earnings Market capitalisation/ funds attributable to owners of Cathay Pacific Price/cash flows HK$ Unit...

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    Cathay Pacific Airways Limited Annual Report 2009 10 Glossary Terms Borrowings Total borrowings (loans and lease obligations) less security deposits, notes and zero coupon bonds. Net borrowings Borrowings and bank overdrafts less liquid funds. Available tonne kilometres ("ATK") Overall capacity,...

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    ... 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: (852) 2747 5210 Fax: (852) 2810 6563 Cathay Pacific's main Internet address...

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