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Cathay Pacific Airways Limited Interim Report 2013 13
2013 Interim Review
Hong Kong Airport Services Limited (“HAS”)
• HAS, a wholly owned subsidiary, provides
ramp and passenger handling services in Hong
Kong. It provides ground services to 29 airlines,
including Cathay Pacific and Dragonair. It also
holds a 25% interest in Shanghai International
Airport Services Co., Limited.
• In the first half of 2013, HAS had 50% and
25% market shares in ramp and passenger
handling businesses respectively at Hong Kong
International Airport.
• The number of customers for passenger
handling decreased from 25 to 24 in the first
half of 2013. The number of customers for ramp
handling decreased from 26 to 25. Passenger
handling flights increased by 3.3% and ramp
handling flights decreased by 0.6%, in each case
compared with the same period in 2012.
• The financial results for the first half of 2013
deteriorated compared to those of the first
half of 2012. The deterioration primarily
reflected cost increases in a highly competitive
environment at Hong Kong International Airport.
Air China Limited (“Air China”)
• Air China, in which Cathay Pacific has a 20.13%
interest, is the national flag carrier and leading
provider of passenger, cargo and other airline
related services in Mainland China.
• At 30th June 2013, Air China operated 220
domestic and 88 international (including
regional) routes to 30 countries and regions,
including 46 overseas cities, four regional cities
and 98 domestic cities.
• The Group’s share of Air China’s results is
based on its accounts drawn up three months
in arrear. Consequently the 2013 interim results
include Air China’s results for the six months
ended 31st March 2013.
• The Group recorded a decrease in profit from
Air China’s results in the first half of 2013.
This primarily reflected reduced demand and
pressure on yields.
• In March 2013, as part of a package of
transactions among the Group, The Boeing
Company, Air China and Air China Cargo,
Air China agreed to purchase two Boeing
747-8I aircraft, one Boeing 777-300ER aircraft
and 20 Boeing 737-800 aircraft from The
BoeingCompany.
• In May 2013, Air China ordered 100 Airbus A320
aircraft, 60 for itself and 40 for its subsidiary,
Shenzhen Airlines Co., Ltd. The aircraft are to be
delivered from 2014 to 2020.