Cathay Pacific 2014 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2014 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Cathay Pacific Airways Limited
18 Review of Operations Passenger Services
Europe
• Demand was strong on most European routes in 2014.
Demand for premium economy class seats was good,
particularly on the Frankfurt and London routes.
• Boeing 777-300ER aircraft replaced Airbus A340-300
aircraft on the Amsterdam route in November 2014 and
on the Paris and Rome routes in January 2015. In Europe,
Airbus A340-300 aircraft now only fly to Moscow.
• The London route performed well in 2014, with good
loads in all classes. Demand for travel to and from the
Southwest Pacific through Hong Kong was strong.
• We introduced a four-times-weekly service to
Manchester in December 2014. Initial results are
encouraging. In December 2014, Cathay Pacific entered
into codeshare arrangements with Flybe. The
arrangements cover Flybe flights between Manchester
and Aberdeen, Belfast, Edinburgh, Exeter, Inverness, the
Isle of Man and Southampton. In January 2015, the
arrangements were extended to cover Flybe flights
between Paris and Birmingham, Manchester and
Exeter, and between Amsterdam and Birmingham
and Southampton.
• Revenue on the Moscow route was affected by political
instability and economic sanctions.
• We will introduce a daily service to Zurich in March 2015
and a four-times-weekly service to Dusseldorf in
September 2015.
North Asia
• Demand for group travel from Mainland China weakened
in 2014 following the imposition of travel restrictions in
October 2013. But there were more individual travellers,
which increased yield.
• Demand for premium class travel from Mainland China
was affected by restrictions on public spending.
• Dragonair added a four-times-weekly overnight service
to Beijing in March 2014. This became a daily service in
July 2014.
• There was increased competition on our Taiwan routes.
However, demand for leisure travel to Taiwan was strong,
assisted by political unrest in some Southeast countries.
• The depreciation of the Japanese yen increased demand
for travel to Japan, but increased capacity put yield
under pressure.
• The performance of our Korean routes was very strong in
2014. Revenue was well above expectations, primarily
due to high demand from Hong Kong.
• Dragonair will introduce a daily service to Haneda in
Tokyo in March 2015.
North America
• We introduced a daily service to Newark in March 2014.
The Los Angeles service was increased to four-times-
daily in June 2014. We will introduce a four-times-weekly
service to Boston in May 2015 and will increase our San
Francisco service to 17 flights per week in June 2015.
• The increase in passenger numbers did not match the
increase in capacity on North American routes.
• Strong competition affected the performance of our
Canada routes, putting yield under pressure.