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Cathay Pacific Airways Limited Annual Report 2010
59
Notes to the Accounts STATEMENT OF COMPREHENSIVE INCOME
2. Segment information (continued)
(b) Geographical information
2010
HK$M
2009
HK$M
Turnover by origin of sale:
North Asia
– Hong Kong and Mainland China 41,313 28,880
– Japan, Korea and Taiwan 11,409 8,413
India, Middle East, Pakistan and Sri Lanka 4,529 3,735
Southwest Pacific and South Africa 6,282 4,712
Europe 8,664 7,920
Southeast Asia 6,175 4,866
North America 11,152 8,452
89,524 66,978
In view of the growing significance of the Southeast Asia and Middle East region during the year under review,
the Management has decided to split it into two separate regions, the India, Middle East, Pakistan and Sri Lanka
region and the Southeast Asia region. The 2009 comparatives have been reclassified accordingly.
India, Middle East, Pakistan and Sri Lanka includes Indian sub-continent, Middle East, Pakistan, Sri Lanka and
Bangladesh. Southeast Asia includes Singapore, Indonesia, Malaysia, Thailand, the Philippines, Vietnam and
Cambodia. Southwest Pacific and South Africa includes Australia, New Zealand and Southern Africa. Europe
includes continental Europe, the United Kingdom, Scandinavia, Russia, Baltic and Turkey. North America
includes U.S.A., Canada and Latin America.
Analysis of net assets by geographical segment:
The major revenue earning asset is the aircraft fleet which is registered in Hong Kong and is employed across
its worldwide route network. Management considers that there is no suitable basis for allocating such assets
and related liabilities to geographical segments. Accordingly, segment assets, segment liabilities and other
segment information is not disclosed.
3. Profit on disposal of investments
2010
HK$M
2009
HK$M
Profit on disposal of an associate 1,837 1,254
Profit on disposal of a long-term investment 328 –
2,165 1,254
In June 2010, the Company sold its remaining 15% interest in HAECO to Swire Pacific for HK$2,620 million. The
disposal constitutes a related party transaction as the Company is an associate of Swire Pacific.
4. Gain on deemed disposal of an associate
On 24th November 2010, Air China completed the issuance of 483,592,400 A shares and 157,000,000 H shares. As
a consequence, Cathay Pacific’s shareholding in Air China has been diluted from 19.3% to 18.3% (further purchases
after the year end takes the current holding to 18.7%). A gain on this deemed disposal of HK$868 million was
recorded, principally reflecting the change in the Group’s share of net assets in Air China immediately before and
after the share issuance.