Cathay Pacific 2013 Annual Report Download - page 21

Cathay Pacific Airways Limited Interim Report 2013 19
Review of Operations
• In March 2013, we entered into agreements in
relation to our cargo fleet as part of a package
of transactions among The Boeing Company,
Cathay Pacific, Air China Cargo and Air China.
Under these transactions, we agreed to
purchase three Boeing 747-8F freighters, for
delivery in the second half of 2013, cancelled
orders for eight Boeing 777-200F freighters,
acquired options to purchase five Boeing 777-
200F freighters and agreed to sell four Boeing
747-400BCF converted freighters. Three of the
converted freighters have already left our fleet.
• By June we have taken delivery of nine Boeing
747-8F freighters, and the tenth in August. With
the addition of the three freighters ordered in
March, we will operate 13 of these highly fuel-
efficient aircraft by the end of 2013.
• In May we parked one of our standard Boeing
747-400 freighters in response to continued
weak demand. A Boeing 747-400BCF converted
freighter was parked in August.
• Despite the current market conditions, we
remain confident about the long-term prospects
of our airfreight business and Hong Kong’s
future as an international air cargo hub.
• This confidence is demonstrated by the
opening in February of the HK$5.9 billion
Cathay Pacific cargo terminal at Hong Kong
International Airport. The terminal began by
handling high value cargo, transit civil mail
and transshipments for Cathay Pacific and
Dragonair. In June the terminal started to
handle imports for Cathay Pacific, Dragonair
and Air Hong Kong. It is expected to be fully
operational by the last quarter of 2013.
ASIA MILES
• Asia Miles is Cathay Pacific’s and Dragonair’s
award-winning travel reward programme. It has
more than five million members.
• Asia Miles has over 500 partners in nine
categories, including airlines, hotels and
major financial institutions. There are 21
airline partners, which together fly to over
1,000destinations.
• There was a 22% increase in redemptions by
Asia Miles members in the first half of 2013.
More than 90% of Cathay Pacific flights carry
passengers who have redeemed frequent flyer
miles through the Asia Miles programme.
ANTITRUST PROCEEDINGS
Cathay Pacific remains the subject of antitrust
proceedings in various jurisdictions and continues
to defend itself vigorously. The outcomes are
subject to uncertainties. Cathay Pacific is not in a
position to assess the full potential liabilities but
makes provisions based on relevant facts and
circumstances in line with the accounting policy
20 set out on page 97 in the 2012 Annual Report.