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Cathay Pacific Company Overview - Research for CX Account

CATHAY PACIFIC
(Chinese: ; Mandarin Pinyin: Guti Hngknggngs; Jyutping: gwok3 taai3 hong4 hung1 gung1 si1, SEHK: 0293) is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place. The airline's operations include scheduled passenger and cargo services to 114 destinations in 36 countries worldwide, including codeshares and joint ventures, with a fleet of wide-body aircraft, consisting of Airbus A330, Airbus A340, Boeing 747 and Boeing 777 equipment. The airline also operates fifth freedom flights from Bangkok and Taipei, its focus cities. Its wholly owned subsidiary, Dragonair, operates to 30 destinations in the Asia-Pacific region from its Hong Kong base. In 2009, Cathay Pacific and Dragonair carried nearly 23.2 million passengers and over 1.52 million tonnes of cargo and mail. The airline was founded on September 24, 1946 by American Roy C. Farrell and Australian Sydney H. de Kantzow, with each man putting up HK$1 to register the airline. The airline made the world's first nonstop transpolar flight flying over the North Pole in July 1998, and it also operated the maiden flight to arrive at the new Hong Kong International Airport. The airline celebrated its 60th anniversary in 2006; and as of October 2009, its major shareholders are Swire Pacific and Air China. It is reciprocally one of the major shareholders of Air China. Cathay Pacific currently holds the title of the world's third largest airline, measured in terms of market capitalization, according to the International Air Transport Association.[1] In 2010, Cathay Pacific became the world's largest international cargo airline, along with main hub Hong Kong International Airport as the world's busiest airport in terms of cargo traffic.[2] Cathay Pacific is a founding member of the Oneworld alliance, with its subsidiary, Dragonair, as an affiliate member. The airline was awarded the title 2009 Airline of the Year by independent research consultancy firm Skytrax. Cathay Pacific is one of the seven airlines to be ranked as a 5-star airline by Skytrax.[3]

Cathay Pacific Company Overview - Research for CX Account Contents

1 History
o o o o o

1.1 1940s and 1950s: The early years 1.2 1960s, 1970s, and 1980s: Expansion 1.3 1990s: Rebranding, renewal, and Oneworld 1.4 2000s: Industrial troubles and acquisitions 1.5 2010s: Current developments

2 Corporate affairs and identity


o o

2.1 Branding 2.2 Livery

3 Destinations
o

3.1 Codeshare agreements

4 Fleet
o o o

4.1 Passenger 4.2 Cargo 4.3 Retired

5 Loyalty programmes
o o

5.1 Marco Polo Club 5.2 Asia Miles

6 Services
o o o o o

6.1 Ground handling 6.2 Travel classes 6.3 In-flight entertainment 6.4 Catering 6.5 Awards

7 Subsidiaries and associates 8 Incidents and accidents 9 See also 10 References

11 External links

Cathay Pacific Company Overview - Research for CX Account

History - 1940s and 1950s: The early years

Niki, one of the carrier's first aircraft, outside Cathay City

Cathay Pacific was founded in Hong Kong on September 24,1946 by American Roy Farrell and Australian Sydney de Kantzow.[4] Both men were ex-air force pilots who had flown the Hump, a route over the Himalayan mountains.[5] Each man put up HK$1 to register the airline.[6] Although initially based in Shanghai, the two men moved to Hong Kong where they formally began Cathay Pacific.[4] They named it Cathay, the ancient name given to China, derived from "Khitan", and Pacific because Farrell speculated that they would one day fly across the Pacific (which happened in the 1970s). The Chinese name for the company "" comes from a Chinese idiom meaning "Grand and Peaceful State".[7]

According to legend, the airline was conceived by Farrell and some foreign correspondents at the bar of the Manila Hotel.[4] On Cathay Pacific's maiden voyage, Farrell and de Kantzow flew from Hong Kong to Manila, and later on to Shanghai.[8] They had a single Douglas DC-3, nicknamed Betsy. The airline initially flew routes between Hong Kong, Sydney, Manila, Singapore, Shanghai, and Canton, while scheduled service was limited to Bangkok, Manila, and Singapore only.[4] In 1948 Butterfield & Swire (now known as Swire Group) bought 45% of Cathay Pacific, with Australian National Airways taking 35% and Farrell and de Kantzow taking 10% each.[6] The new company began operations on 1 July 1948 and was registered as Cathay Pacific (1948) Ltd on 18 October 1948.[9] Swire later acquired 52% of Cathay Pacific and today the airline is still 40% owned by the Swire Group through Swire Pacific Limited.[10]

1960s, 1970s, and 1980s: Expansion

Lockheed L-1011 TriStar at Osaka International Airport in the old livery

Cathay Pacific Company Overview - Research for CX Account The airline prospered in late 1950s and into the 1960s by buying its archrival, Hong Kong Airways, on 1 July 1959.[11] Between 1962 and 1967, the airline recorded double digit growth on average every year and the world's first to operate international services to Fukuoka, Nagoya and Osaka in Japan.[4] Eighteen years after the airline was founded, it carried its one millionth passenger and acquired its first jet engine aircraft Convair 880 in 1964.[5][12] In the 1970s, Cathay Pacific installed a computerised reservation system and flight simulators. In 1979, the airline acquired its first Boeing 747 and applied for traffic rights to begin flying to London in 1980. Expansion continued into the 1980s, with nonstop service to Vancouver in 1983, with continuing service on to San Francisco in 1986 when an industry-wide boom encouraged route growth to many European and North American centres.[12] On 15 May 1986, the airline went public and listed in the Main Board of the Hong Kong Stock Exchange.[13]

1990s: Rebranding, Renewal, And Oneworld In January 1990, Cathay Pacific and its parent company, Swire Pacific, acquired a significant shareholding in Dragonair, and a 75% stake in cargo airline Air Hong Kong in 1994.[14][15] During the early 1990s, the airline launched a programme to upgrade its passenger service. Also, the green and white striped livery was replaced with the current "brushwing" livery.[16] In 1994, the airline announced that it would establish its new corporate identity. It planned to implement a 23 million Hong Kong dollar (RM 7.3 million) program to update its image. The fleet was expected to have the new logo in place within four years.[17]

Cathay Pacific's Boeing 747-400 in old livery.

Later, the airline began a US$9 billion fleet replacement program during the mid-1990s that resulted with it having one of the youngest airline fleets in the world.[16] In 1996, CITIC Pacific increased its holdings in Cathay Pacific from 10% to 25%, while the Swire Group holding was reduced to 44% as two other Chinese companies, CNAC and CTS also bought substantial holdings.[5] On 1 July 1997, administration of Hong Kong was transferred from the UK to the People's Republic of China. Most of the airline's aircraft were registered in Hong Kong and bore a registration beginning with "VR". Under the terms of an agreement within the Sino-British Joint Liaison Group (JLG), all registrations were changed to the prefix "B" by December 1997, which is used by the People's Republic of China and the Republic of China (Taiwan).[18] Cathay Pacific aircraft formerly carried a painted Union Jack on the tail but these were removed several years prior to the 1997 takeover.[19][20] On 21 May 1998, Cathay Pacific became the launch carrier when it took the first delivery of the Boeing 777-300, the newest member of the Boeing 777 family, at a ceremony in Everett.[21] In February 1999, Cathay Pacific co-founded the Oneworld Alliance.[22] The airline was hurt by the Asian financial crisis of the late 1990s, but recorded a record HK$5 billion profit in 2000.[23]

Cathay Pacific Company Overview - Research for CX Account New Hong Kong airport and transpolar flights On 5 July 1998, Hong Kong Kai Tak Airport witnessed its last commercial departing flight, Cathay Pacific Flight 251 to London Heathrow Airport, after over 73 years of operation. The next day, Cathay Pacific Flight 889, from New York John F. Kennedy International Airport, piloted by Captain Mike Lowes and First Officer Kelvin Ma, was the maiden flight to arrive at the new Hong Kong International Airport, located at Chek Lap Kok, west of Hong Kong.[24] This flight was also the world's first non-stop transpolar flight from New York to Hong Kong. The flight, dubbed Polar One, takes approximately 16 hours to travel between Hong Kong and New York, saving about three to four hours on journey time, compared to the one stop service via Vancouver. It is Cathay Pacific's longest non-stop flight, as well as one of the longest non-stop flights by distance in the world at 8,055 mi (12,963 km).[25]

2000s: Industrial troubles and acquisitions

Cathay Pacific operated three A340-600s from 2002 to 2008.

The 2000s saw Cathay Pacific experience labor relations issues, and complete the acquisition of Dragonair. The airline operated the first commercial non-stop transpolar flight from Canada on 19 May 2000, with Cathay Pacific Flight 829 from Toronto to Hong Kong. The flight flew directly over Hudson Bay and passed within 50 nautical miles (93 km; 58 mi) of the North Pole, it took just 14 hours and 59 minutes and saved almost three hours from the normal route, which included a technical stop in Anchorage. It is Cathay Pacific's second longest non-stop flight with a distance of 7,809 mi (12,567 km).[26] On 28 November 2002, the airline took delivery of its first Airbus A340-600 aircraft at a ceremony at the Airbus factory in Toulouse. Cathay Pacific was the launch customer in Asia for the A340-600 and the aircraft was the first of three leased from International Lease Finance Corporation (ILFC).[27] On 1 December 2005, Cathay Pacific announced an order for 16 Boeing 777-300ER aircraft, four on lease from ILFC, to be delivered between September 2007 and July 2010, plus options on 20 more of the type, two of which were converted to orders on 1 June 2006. The airline also ordered 3 more A330-300 the same day, with the delivery of the aircraft scheduled for 2008.[28][29][30] On 7 August 2007, Cathay Pacific announced that it had placed an additional order for five more wide-body Boeing 777-300ER aircraft for a total price of about US$1.4 billion, increasing its commitment to a total of 23 of the aircraft type.[31]

The 49ers employment dispute In 2001, the Hong Kong Aircrew Officers Association (HKAOA) launched a "work to rule" campaign to further its campaign for pay improvements and changes to roster scheduling practices. The action involved pilots refusing to work flights that were not scheduled on their roster. Although this alone did not cause extensive disruption, rostered pilots began calling in sick for their flights. Combined with the work to rule campaign, the airline was unable to cover all of its scheduled flights and cancellations

Cathay Pacific Company Overview - Research for CX Account resulted. Cathay Pacific steadfastly refused to negotiate with the HKAOA under threat of industrial action.[32]
Airbus A330-300 at Taipei Taoyuan International Airport

On 9 July 2001, reportedly following a comprehensive review of the employment histories of all its pilots, the company fired 49 of its 1,500 pilots. This group became known colloquially as "the 49ers". Nearly half of the fired pilots were captains, representing five percent of the total pilot group. Of the 21 officers of the HKAOA, nine were fired, including four of the seven union negotiators.[33]

Then-HKAOA president Captain Nigel Demery took the view that "the firing was pure intimidation, a union-bust straight up, designed to be random enough to put the fear in all pilots that they might be next, no reason given".[33] The dismissals were challenged in a number of legal proceedings, but none were reinstated. The airline later offered the 49 pilots it terminated in 2001 the chance to reapply for pilot positions with its cargo division, guaranteeing such applicants first interviews, subject to passing psychometric testing. Nineteen former employees applied and twelve were offered jobs.[34] Current relations between the company and the HKAOA are cordial. The replacement of Captain Demery by Captain Murray Gardner is said to have had a lot to do with this change in relationship. Captain Gardner favoured a more diplomatic and conciliatory approach to dealing with management, and workplace relations between the two groups have been largely conciliatory since 2002.[35] On 11 November 2009, 18 of The 49ers succeeded in the Hong Kong Court of First Instance concerning their joint claims for breach of contract, breach of the Employment Ordinance and defamation. Judge Anselmo Reyes ruled the airline had contravened the Employment Ordinance by dismissing the pilots without a valid reason, adding that they had been sacked primarily because of union activities. He also held that remarks by then chief operating officer Philip Chen Nanlok and current chief executive Tony Tyler after the sackings were defamatory. The judge handed the pilots a victory in their longrunning legal battle, with individual awards of HK$3.3 million for defamation together with a month's pay and HK$150,000 for the sackings.
Boeing 747-400 takes off.

On 24 December 2010, judges Frank Stock, Susan Kwan and Johnson Lam of the Court of Appeal overturned the judgment of the lower court to the extent that the claim for wrongful termination of contract was dismissed. The finding that Cathay Pacific wrongly sacked the 18 pilots for their union activities was upheld. The court upheld the defamation claim but reduced the damages for the defamatory comments made by Cathay Pacific management. The judges also modified the judgment awarding payment of legal costs to the pilots and instead said that they should now pay some of Cathays costs.[36]

Cathay Pacific Company Overview - Research for CX Account The leader of the 49er Plaintiffs, Captain John Warham, launched a book titled "The 49ers - The True Story" on 25 March 2011.[37] The pilots were awarded leave on 26 October 2011 to take their case to the Court of Final Appeal. The matter was heard before Hon. Mr. Justices Bokhary, Chan & Ribeiro who are all Permanent Judges of the Court of Final Appeal. The matters to be decided upon by the Court will concern wrongful termination of contract and the level of damages for defamation. The case will be heard by the Court of Final Appeal on 27th August 2012.

Acquisition and downsizing of Dragonair On 9 June 2006, the airline underwent a shareholding realignment under which Dragonair became a wholly owned subsidiary but continued to operate under its own brand. By acquiring Dragonair, this meant gaining more access to the restricted, yet rapidly growing, Mainland China market and more opportunities for sharing of resources. CNAC, and its subsidiary, Air China, acquired a 17.5 percent stake in Cathay Pacific, and the airline doubled its shareholding in Air China to 17.5 percent. CITIC Pacific reduced its shareholding to 17.5 percent and Swire Group reduced its shareholding to 40 percent.[10][38][39]
A Dragonair Airbus A320-200

Dragonair had originally planned significant international expansion. It was already operating services to Bangkok and Tokyo, and was to have a dedicated cargo fleet of nine Boeing 747-400BCF aircraft by 2009 operating to New York, Los Angeles, Chicago, San Francisco and Columbus.[40] It had also acquired three Airbus A330-300 aircraft to commence services to Sydney and Seoul.[41] Following the acquisition by Cathay Pacific, Dragonair's proposed expansion plans underwent a comprehensive route compatibility analysis with the Cathay network, in an effort to reduce duplication. Dragonair services to Bangkok and Tokyo were terminated, and new services launched to Sendai, Phuket, Manila and Kathmandu. With the merging of similar departments at the two previously separate airlines, some Dragonair staff have had their employment contracts transferred to Cathay Pacific, and others made redundant due to the efficiencies gained in the merger. This has resulted in an approximately 37 percent decrease in the number of staff contractually employed by Dragonair.[42] Although there has been speculation that Dragonair will cease as a brand and be fully absorbed into Cathay Pacific, this is unlikely as Dragonair enjoys significant market awareness in regional Chinese markets.[39]

Cathay Pacific Company Overview - Research for CX Account

Economic Challenges

Boeing 777-200 at Nagoya, Japan

To celebrate the airline's 60th anniversary in 2006, a year of road shows named the "Cathay Pacific 60th Anniversary Skyshow" was held where the public could see the developments of the airline, play games, meet some of the airline's staff, and view vintage uniforms. Cathay Pacific also introduced anniversary merchandise and in-flight meals served by famous restaurants in Hong Kong in collaboration with the celebrations.[43] In June 2008, Cathay Pacific entered into a plea bargain with the United States Department of Justice in respect of antitrust investigations over air cargo price fixing agreements. It was fined US$60 million. The airline has subsequently set up an internal Competition Compliance Office, reporting to Chief Operating Officer John Slosar, to ensure that the Group complies with all relevant competition and antitrust laws in the jurisdiction in which it operates. The breaches for which Cathay Pacific Cargo were being investigated in the U.S. were not illegal under Hong Kong competition law.[44][45]

Cathay Pacific Boeing 747-400 at Singapore Changi Airport

In March 2009, the airline reported a record full-year loss of HK$8.56 billion for 2008, which was also the carrier's first since the 1997 Asian Financial Crisis. The record loss included fuelhedging losses of HK$7.6 billion and a HK$468 million charge for a price-fixing fine in the U.S. It had to scrap its final dividend. The hedging losses were a result of locking in fuel prices at higher than prevailing market price. As of the end of 2008, Cathay Pacific has hedged about half of its fuel needs until the end of 2011. The airline at the time estimated that it would face no further cash costs from the hedges if the average market price stood at US$75, enabling it recoup provisions it made in 2008.[46] The flattening out of fuel prices resulted in Cathay Pacific recording a paper fuel hedging gain for its half year reports for 2009. However, as a result of the global economic situation, the Group reported an operating loss. Given the current economic climate, and in line with the steps being taken by other major airlines around the world, the airline has undertaken a comprehensive review of all its routes and operations. This has resulted in frequencies being reduced to certain destinations, ad hoc cancellations on other routes, deferred capital expenditure, parked aircraft and introduced a Special Leave Scheme for staff to conserve money.[47] According to CEO Tony Tyler, the yield from passengers was "hugely down" and the airline had lost "a lot of premium traffic". He noted that it could take 20 passengers in economy to make up for the lost revenue of one fewer first class passenger flying to New York from Hong Kong.[48]

Cathay Pacific Company Overview - Research for CX Account 2010s: Current developments In 2010, the airline set another record high profit, amounting to HK$14.048 billion despite record losses set in the same decade. At the same time, Cathay Pacific had taken delivery of several new aircraft types, including the Airbus A330-300 and Boeing 777-300ER.[49] Tony Tyler left his position as CEO at the airline on 31 March 2010 to pursue his new job at the IATA. Chief Operating Officer John Slosar had succeeded Tony Tyler as the new CEO.[50] In addition, New Zealand's Commerce Commission had dropped charges against Cathay Pacific concerning the air cargo price fixing agreements.[51]

CORPORATE AFFAIRS AND IDENTITY

Cathay City, the head office at Hong Kong International Airport

Cathay Pacific's head office, Cathay Pacific City (Traditional: , Simplified: , Cantonese: gwok3 taai3 sing4, Mandarin: Guti Chng), is located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place.[52][53] Cathay Pacific City was scheduled to be built in increments between April and September 1998.[54] The headquarters opened in 1998.[55] Previously the airline's headquarters were at the Swire House, which was a complex in Central named after the airline's parent company.[56] Branding Branding and publicity efforts have revolved primarily around the staff and passengers of Cathay Pacific. The airline's first campaign focusing on the passenger was "It's the little things that move you". The airline's latest advertising campaign is "Great Service. Great People. Great Fares."[57] Another application, Meet the Team, introduces some of the staff through profiles, revealing many behind-thescenes stories many of which contain inspiring facts about their career life.[58]

Livery
Boeing 747-400 at London Heathrow Airport

All Cathay Pacific aircraft carry the following livery, logos and trademarks: the "brushwing" livery on the body and on the vertical stabilizer, introduced in the early 1990s; the "Asia's world city" brandline, the Brand Hong Kong logotype and the dragon symbol; the Oneworld logo and the Swire Group logo.[59][60][61]

Cathay Pacific Company Overview - Research for CX Account The brushwing logo consists of a calligraphic stroke against a green background; the stroke is intended to appear like the wing of a bird. The previous logo, consisting of green and white stripes, was in place from the early 1970s until 1994.[17] Prior to 1997, all Cathay Pacific aircraft carried they British flag on the empennage. After the handover, aircraft carry the Brand Hong Kong logo and with HONG KONG or in Chinese under or beside the Brand Hong Kong logo instead of using the Hong Kong Special Administrative Region (HKSAR) flag. In fact, the HKSAR flag has never appeared on any aircraft.

DESTINATIONS
Further information: Cathay Pacific destinations

Cathay Pacific destinations. China Cathay Pacific destinations Cathay Pacific serves 115 destinations in 36 countries and territories on five continents, with a welldeveloped Asian network. The airline serves a number of gateway cities in North America and Europe, with easy connections with its Oneworld and codeshare partners, American Airlines and British Airways via Los Angeles and London, respectively. In addition, the airline serves 10 French cities via a codeshare partnership with French national rail operator, SNCF, from Paris. The airline also has access to over 17 destinations in China through its subsidiary, Dragonair.[62] Cathay Pacific suspended its flight operations to and from Colombo on 26 March 2007 due to security concerns, following the closure of the Bandaranaike International Airport. The services between Hong Kong and Colombo via Bangkok and Singapore have subsequently resumed on 30 March 2008.[63][64] In 2008, the airline increased services to Auckland, Brisbane, Chennai, Delhi, Dubai, Mumbai, Perth, Singapore and Sydney, while reduced services to Toronto and Vancouver.[65] In 2009, the airline increased services to Jakarta and Shanghai, while services to Paris were increased from 29 March 2009 to 31 August 2009 and from 18 December 2009 to 6 January 2010. In addition, Jeddah will be Cathay Pacific's second destination in Saudi Arabia from 25 October, while services to Brisbane and San Francisco are temporarily reduced from September to 17 November and October, respectively. In late 2009, services increased back to Toronto and Vancouver at a frequency of twice daily.[66][67] Cathay Pacific announced it will launch daily passenger service to Chicago operated by Boeing 777-300ER on 1 September 2011 and increase service to New York with a fourth daily flight beginning 27 March 2011.[68] The airline also launched its four weekly service to Abu Dhabi by Airbus 330-300 on 2 June 2011; the airline's second destination in the United Arab Emirates complimenting existing service to Dubai[69]

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Hub Future Cargo only Passenger + Cargo Terminated destinations *

* indicates terminated passenger destinations that are now served with cargo flights only.

City Abu Dhabi Adelaide Amsterdam Anchorage Atlanta Auckland Bahrain Bandar Seri Begawan Bangalore Bangkok Beijing Brisbane Brussels

Country United Arab Emirates Australia Netherlands United States United States New Zealand Bahrain Brunei India Thailand China Australia Belgium

IATA AUH ADL AMS ANC ATL AKL BAH BWN BLR BKK PEK BNE BRU

ICAO

Airport

Ref

OMAA Abu Dhabi International Airport YPAD Adelaide Airport

EHAM Amsterdam Schiphol Airport PANC KATL NZAA OBBI Ted Stevens Anchorage International Airport Hartsfield-Jackson Atlanta International Airport Auckland Airport Bahrain International Airport

WBSB Brunei International Airport VOBL VTBS ZBAA YBBN EBBR Bengaluru International Airport Suvarnabhumi Airport Beijing Capital International Airport Brisbane Airport Brussels Airport

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Cathay Pacific Company Overview - Research for CX Account

City Cairns Cebu Chengdu Chennai Chicago Colombo Dallas Delhi Denpasar Dhahran Dhaka Dubai Frankfurt Fukuoka Hanoi * Ho Chi Minh City Hong Kong Honolulu Houston Istanbul Jakarta

Country Australia Philippines China India United States Sri Lanka United States India Indonesia Saudi Arabia Bangladesh United Arab Emirates Germany Japan Vietnam Vietnam Hong Kong United States United States Turkey Indonesia

IATA CNS CEB CTU MAA ORD CMB DFW DEL DPS DHA DAC DXB FRA FUK HAN SGN HKG HNL IAH IST CGK

ICAO YBCS Cairns Airport

Airport

Ref

RPVM Mactan-Cebu International Airport ZUUU Chengdu Shuangliu International Airport VOMM Chennai International Airport KORD VCBI O'Hare International Airport Bandaranaike International Airport

KDFW Dallas/Fort Worth International Airport VIDP Indira Gandhi International Airport

WADD Ngurah Rai International Airport OEDR VGZR Dhahran International Airport Shah Jalal International Airport

OMDB Dubai International Airport EDDF RJFF VVNB VVTS Frankfurt Airport Fukuoka Airport Noi Bai International Airport Tan Son Nhat International Airport
[3]

VHHH Hong Kong International Airport PHNL KIAH LTBA WIII Honolulu International Airport George Bush Intercontinental Airport Ataturk International Airport SoekarnoHatta International Airport

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City Jeddah Johannesburg Kaohsiung Karachi

Country Saudi Arabia South Africa Taiwan Pakistan

IATA JED JNB KHH KHI

ICAO OEJN FAJS RCKH OPKC

Airport King Abdul Aziz International Airport OR Tambo International Airport Kaohsiung International Airport Jinnah International Airport Netaji Subhash Chandra Bose International Airport

Ref

Kolkata

India

CCU

VECC

Kota Kinabalu Kuala Lumpur Labuan London Los Angeles Macau Manchester * Manila

Malaysia Malaysia Malaysia United Kingdom United States Macau United Kingdom Philippines

BKI KUL LBU LHR LAX MFM MAN MNL

WBKK Kota Kinabalu International Airport WMKK Kuala Lumpur International Airport WBKL EGLL KLAX Labuan Airport London Heathrow Airport Los Angeles International Airport

VMMC Macau International Airport EGCC RPLL Manchester Airport Ninoy Aquino International Airport Sir Seewoosagur Ramgoolam International Airport

Mauritius

Mauritius

MRU

FIMP

Melbourne Miami Milan Moscow Mumbai Nagoya

Australia United States Italy Russia India Japan

MEL MIA MXP DME BOM NGO

YMML Melbourne Airport KMIA LIMC Miami International Airport Malpensa Airport

UUDD Domodedovo International Airport VABB RJGG Chatrapati Shivaji International Chbu Centrair International Airport

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City New York City Osaka Paris Phnom Penh Penang Perth Port Moresby Riyadh Rome San Francisco Sapporo Seoul Shanghai Singapore Stockholm * Surabaya Sydney Taipei Tokyo Tokyo Toronto

Country United States Japan France Cambodia Malaysia Australia Papua New Guinea Saudi Arabia Italy United States Japan South Korea China Singapore Sweden Indonesia Australia Taiwan Japan Japan Canada

IATA JFK KIX CDG PNH PEN PER POM RUH FCO SFO CTS ICN PVG SIN ARN SUB SYD TPE HND NRT YYZ

ICAO KJFK RJBB LFPG VDPP

Airport John F. Kennedy International Airport Kansai International Airport Charles de Gaulle Airport Phnom Penh International Airport

Ref

WMKP Penang International Airport YPPH AYPY OERK LIRF KSFO RJCC RKSI ZSPD WSSS ULLI Perth Airport Jacksons International Airport King Khalid International Airport Leonardo da Vinci-Fiumicino Airport San Francisco International Airport New Chitose Airport Incheon International Airport Pudong International Airport Singapore Changi Airport Stockholm-Arlanda Airport

WARR Juanda International Airport YSSY RCTP RJTT RJAA CYYZ Sydney Airport Taiwan Taoyuan International Airport Haneda Airport Narita International Airport Pearson International Airport

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City Townsville Vancouver Vientiane Xiamen * Yangon Zaragoza

Country Australia Canada Laos China Myanmar Spain

IATA TSV YVR VTE XMN RGN ZAZ

ICAO YBTL CYVR VLVT ZSAM YBTL LEZG Townsville Airport

Airport

Ref

Vancouver International Airport Wattay International Airport Xiamen Gaoqi International Airport Yangon International Airport Zaragoza Airport
[4]

Zurich

Switzerland

ZRH

LSZH

Zurich Airport

[5]

Codeshare agreements Cathay Pacific has codeshare agreement with the following airlines.[70][71][72] indicates as Oneworld alliance partner

Air China Air Pacific Alaska Airlines American Airlines British Airways Comair

Dragonair Finnair Iberia Japan Airlines LAN Malaysia Airlines

Philippine Airlines Qantas Vietnam Airlines Virgin America[73] WestJet[74]

The airline also has a codeshare agreement with French high speed trains (SNCF) from TGV station at Paris-Charles de Gaulle Airport to ten French cities.[62][75]

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FLEET
Main article: Cathay Pacific fleet

Cathay Pacific total fleet summary Aircraft type In service (by type) Airbus A330 Airbus A340 Airbus A350 Boeing 747 34 11 46 Model 300 300 900 400 400BCF 400F 400ERF 8F Boeing 777 42 200 300 300ER F Total 134 In service (by model) Orders 34 11 21 9 6 6 5 5 12 25 134 18 36 5 25 8 92

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Cathay Pacific Company Overview - Research for CX Account Passenger Cathay Pacific operates three-class configurations on its Boeing 747 and Boeing 777-300ER fleet, and two-class configurations on all other aircraft. Cathay Pacific is one of the few airlines to solely operate wide-bodied jets. The Boeing customer code for Cathay Pacific is 67 (I.e. 747-467).
Cathay Pacific passenger fleet Aircraft Total in service By Aircraft Airbus A330-300 34 By Variation 17 13 3 18 Orders F J Passengers Y+ Y Total Variation Notes

44 40 38

267 223 223

311 263 261

330 33B 33E

Fitted with Regional Product Will be converted to 33G Fitted with new long-haul Business Class, will be converted to 33G Fitted with new long-haul Business and Economy Class Replacement aircraft: Airbus A350-900 Replacing: Airbus A340-300 and Boeing 747-400

38

28

175

241

33G

Airbus A340-300 Airbus A350-900 Boeing 747-400

11

11

26

257

283

34B

36

TBA

21

21

46

324

379

74A

Replacement aircraft: Boeing 777-300ER and Airbus A350900; 8 of which will be converted to 74K Replacement aircraft: Boeing 777-300ER and Airbus A350900; Fitted with new Economy class Fitted with Regional Product

46

26

278

359

74K

Boeing 777-200 Boeing 777-300 Boeing 777-300ER

45

291

336

777

12

12

45

353

398

773

Fitted with Regional Product

25

25

57

238

301

77A

Will be converted to 77G or 77H

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6 6 53 238 297 77D (New from manufacturer) 77D (Converted from 77A) 77G Fitted with new long-haul Business Class, will be converted to 77H Fitted with new long-haul Business Class, will be converted to 77H Fitted with new long-haul Business and Economy Class Fitted with new long-haul Business and Economy Class

10

53

229

288

40

32

268

340

53

34

182

273

77H

Total

108

79

Cathay Pacific's average fleet age is 11.1 years at January 2011.

Passenger Fleet Plans


Cleaning a Boeing 747-400 at London Heathrow Airport

On 8 November 2007, Cathay Pacific announced that it had placed an order for seven additional Boeing 777-300ERs and 10 747-8F freighters with a list price of US$5.2 billion.[76] In addition, it also took 14 options for the new freighter at that time. This order, if all options are exercised, would make Cathay Pacific the largest operator of 777-300ERs in Asia and largest operator of 747-8Fs in the world.[77] On 6 December 2007, the airline, already the biggest operator of the Airbus A330, placed a firm order for eight more Airbus A330-300 aircraft valued at approximately US$1.7 billion at list prices. Together with the commitment for 17 long-haul passenger aircraft and freighters announced the previous month, the new aircraft will take the Cathay Pacific Group's fleet size to 200 by 2012. From that 200 aircraft, the airline will operate 155 itself, and the rest will be used by its subsidiaries.[78] The airline's CEO, Tony Tyler, stated on 30 October 2007 that the carrier had no plans regarding the purchase of either the Boeing 787 Dreamliner or the Airbus A380 for the time being.[79] On 8 June 2010, the carrier entered talks with both Boeing and Airbus about adding the 787 Dreamliner and/or the Airbus A350 to their fleet, with Tyler reported to have said that the airline was more interested in acquiring smaller, long-range jets that are better suited for carrying cargo, than it is in acquiring either the Boeing 747-8I or the Airbus A380. The twinjet aircraft would allow Cathay Pacific to both add new destinations to its network, and to replace those 747-400s and A340-300s that currently operate on its long-haul routes alongside 777-300ERs.[80] On 11 March 2009, it was reported that the delivery of two aircraft due in 2008 was delayed after a strike at Boeing. Additionally, the delivery of two 747-8 freighters was pushed back to 2010 amid delays at the planemaker.[46] The delivery positions on new A330-300 and 777-300ER aircraft were deferred

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Cathay Pacific Company Overview - Research for CX Account due to the economic recession. Cathay Pacific also sent four A340-300 and two 747-400 aircraft to Victorville Airport for storage.[81]

Cathay Pacific Boeing 777-300ER in Oneworld livery

On 4 August 2010, it was confirmed that Cathay Pacific would buy 30 A350-900s and 6 more 777-300ERs.[82] The carrier remained open on a potential purchase of the A380 for long-haul and ultra long-haul routes to Australia, the US and Europe, with outgoing CEO Tyler saying "I wouldn't rule out the airline becoming a customer (for the A380) at some point."[83]

On 8 March 2011, it was reported that the airline had ordered another 15 A330-300s and 10 777300ERs. The deal also included 2 more A350-900s which will be leased from ILFC.[84] On 10 August 2011, Cathay Pacific entered into an agreement with Boeing to purchase four 777-300ER passenger aircraft and eight Boeing 777F Freighters.[85] On 20 January 2012, it was confirmed that Cathay Pacific would buy another 6 A350-900s.[86] On 20 August 2011, it was identified that Cathay Pacific would be launching a Premium Economy Class on its new 777-300ERs from March 2012. The aircraft will feature 40 Business Class, 32 Premium Economy Class and 268 Economy Class with the absence of a First Class cabin.[87] On 22 August 2011, it is expanded the Premium Economy Class offering to its new A330-300s from March 2012. The aircraft will feature 38 Business Class, 28 Premium Economy Class and 175 Economy Class.[88] Premium Economy Class will also be offered on 4-class 777-300ERs and 747-400s from summer 2012.[89][90][91]

Cargo Cathay Pacific Cargo operates a fleet of over 20 freighters to more than 40 destinations around the world, in addition to utilising the cargo space on its passenger aircraft. The cargo subsidiary was established in 1981 with a twice-a-week Hong KongFrankfurtLondon service operated jointly with Lufthansa.[92] The cargo division ranked fifth in the freight category of the 2008 The World's Top 25 Airlines by Air Transport World.[93]

Cathay Pacific Cargo fleet (as of November 2011) Aircraft Boeing 747-400BCF Boeing 747-400ERF Total 9 6 Orders

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Cathay Pacific Company Overview - Research for CX Account Boeing 747-400F Boeing 747-8F Boeing 777F Total 6 5 26 5 8 13

Cargo fleet notes Boeing 747-200F at Melbourne Airport (2007). On 5 October 2005, the airline took delivery of its first Boeing 747-400 Boeing Converted Freighter (Boeing 747-400BCF) aircraft that was converted from a passenger plane to a freighter in Xiamen, China. Cathay Pacific Cargo is the launch customer for this aircraft type and it was also the first time Boeing had conducted a major flight test programme outside the United States.[94] On 22 June 2006, the airline announced an order of six Boeing 747-400ERF freighters, delivered in 2008 and 2009.[95] On 31 October 2011, Cathay Pacific took delivery of its first Boeing 747-8F.[96] On 18 March 2008, Airport Authority Hong Kong (HKAA) awarded Cathay Pacific Services Ltd (CPSL), a wholly owned subsidiary, a non-exclusive 20-year franchise to invest in, design, construct and operate a new air cargo terminal at Hong Kong International Airport (HKIA). The new cargo terminal will be built in the cargo area at the airport, close to the existing cargo servicing facilities, with a site area of approximately 10 hectares. The new cargo terminal will be operated by a separate management team in CPSL.[97] On 15 January 2009, CPSL signed a supplementary agreement with the HKAA to defer the completion of its new cargo terminal by a maximum of 24 months to mid-2013, in response to the current market conditions. A non disclosed compensation amount for the deferral is included in the supplementary agreement.[98]

Special liveries In 1997, a Boeing 747-200 (B-HIB) named Spirit of Hong Kong, with a special livery, a big traditional Chinese brushstroke character "" (means family/home), a traditional Chinese wording " " painted on the left side of the aircraft and a wording "The Spirit of Hong Kong 97" painted on the right side of the aircraft, to commemorate the handover of Hong Kong back to China.[99] On 17 January 2000, Spirit of Hong Kong made a return on a Boeing 747-400 (B-HOX) to celebrate the legendary resilience of Hong Kong with a new special livery depicts a young athlete overcoming a series of challenges to reach his goal. A special wording "Same Team. Same Dream." was painted on the left side of the aircraft and a traditional Chinese wording " " was painted on the right side of the aircraft.[100][101][102]

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Cathay Pacific Company Overview - Research for CX Account

Airbus A330-300 fuselage livery. This aircraft was named Progress Hong Kong.

On 5 July 2002, a Boeing 747-400 (B-HOY), named Asia's world city, carried a special livery, the "Asia's world city" brandline, the Brand Hong Kong logotype and the dragon symbol, to promote Hong Kong around the world.[103] In January 2008, a new Boeing 777-300ER (B-KPF) was painted in the Asia's world city livery.[104] On 29 August 2006, the airline took delivery of its 100th aircraft, an Airbus A330-300 with the registration B-LAD. For the aircraft acceptance ceremony in Toulouse, the aircraft was painted in a 100th aircraft livery with a 60th anniversary sticker behind the second doors (2L and 2R), the wording "100th aircraft", and the traditional Chinese wording "" painted on the rear of the aircraft.[105]. The aircraft was named Progress Hong Kong, a name that was chosen from a competition by the staff.[105][106] In November 2011, Cathay received its second 747-8 Freighter (B-LJA) which was painted in the Hong Kong Trader livery. The livery was designed to commemorate the topping out of the new Cathay Pacific Cargo Terminal. The name of the livery is taken from Cathay Pacifics very first 747 freighter which entered the fleet in 1982. Currently, a total of three Cathay Pacific aircraft are painted in the Oneworld livery to commemorate the alliance's 10th anniversary. On 12 March 2009, Cathay Pacific's first Oneworld aircraft, an Airbus A340300 (B-HXG), was painted in the new, standard Oneworld livery. An additional aircraft, an Airbus A330300 (B-HLU), has also been painted in the Oneworld livery while a brand-new Boeing 777-300ER (B-KPL) was painted and delivered on 17 October 2009.[107][108][109]

Retired Since its conception in 1946, the airline had operated many types of aircraft. The first two aircraft were two World War II surplus Douglas DC-3s named Betsy and Niki. Betsy (VR-HDB), the first aircraft for Cathay Pacific, is now a permanent exhibit in the Hong Kong Science Museum. Niki (VR-HDA) was lost, but a similar DC-3 was purchased as a replacement. It was refurbished and repainted by the airline's Engineering Department and maintenance provider, Hong Kong Aircraft Engineering Company, and it now wears the second Cathay Pacific livery from the late 1940s. This aircraft received Niki's old VR-HDA aircraft registration and is now on public view in the car park outside the Flight Training Centre of Cathay City.[110]

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Cathay Pacific Company Overview - Research for CX Account

Betsy

Other aircraft that have been in service with Cathay Pacific are (in alphabetical order):

Airbus A340-200[111] (leased from Philippine Airlines for three years before delivery of A340-300) Airbus A340-600 (leased from ILFC) Avro Anson Boeing 707320 Boeing 747-200B[111] (all retired in 2009) Boeing 747-300 (leased from Pakistan International Airlines since July 2002, 5 were on lease by PIA)[111] Bristol Britannia (leased from BOAC for a few months whilst the Electras were taken out of service due to defects) Consolidated PBY Catalina[112] Convair 880[113] Douglas DC-3[110] Douglas DC-4[114] Douglas DC-6 Lockheed L-1011-100 TriStar[115] Lockheed L-188 Electra

During the late 1980s and early 1990s, Cathay Pacific was the largest operator of the Lockheed TriStar outside the United States.[115]

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Cathay Pacific Company Overview - Research for CX Account

LOYALTY PROGRAMMES
Cathay Pacific has two loyalty programmes: The Marco Polo Club (The Club), the loyalty programme, and Asia Miles, the travel reward programme. Members of The Club are automatically enrolled as Asia Miles members.[116] Asia Miles has been named the "Best Frequent Flyer Programme" in the 2009 Business Traveller Asia-Pacific Travel Awards and is the fifth consecutive year it has won the award.[117] As of April 2010, there were roughly 3.6 million Asia Miles members and 500,000 Marco Polo members.[118]

Marco Polo Club

The Marco Polo Club logo The Marco Polo Club is divided into four tiers, Green (entry level), Silver, Gold and Diamond, based on the member's past travel. A joining fee of US$50 or 35 is applicable for a Marco Polo Club membership. Members earn Club Miles and Club Sectors on eligible fare classes with Cathay Pacific, Dragonair and Oneworld member airlines. These are used to calculate the member's eligibility for membership renewal, upgrade or downgrade during the membership year. Higher-tiered members are provided with increased travel benefits such as guaranteed Economy Class seat, additional baggage allowance, priority flight booking and airport lounge access. The Marco Polo Club membership is terminated after 12 months of inactivity or failure to meet minimum travel criteria as outlined in the membership guide.[116][119] Green The Green tier is the entry level to the Marco Polo Club. Benefits include dedicated 24-hour club service line for flight reservations, designated Marco Polo check-in counters, excess baggage allowance and lounge access redemptions, and priority boarding. Members are required to earn four Club Sectors for membership renewal.[120] Silver Silver tier level is achieved or retained when the member earns 30,000 Club Miles or 20 Club Sectors during the membership year. Additional benefits for Silver Card members include advance seat reservations, priority waitlisting, Business Class check-in counters, 10 kg (22 lb) extra baggage allowance, priority baggage handling and Business Class lounge access when flying Cathay Pacific or Dragonair operated flights. Additionally, members are eligible to use the Frequent Visitor e-Channels, for seamless self-service immigration clearance at Hong Kong International Airport. Marco Polo Club Silver tier status is equivalent to Oneworld Ruby tier status, which entitles members to Oneworld Ruby benefits when travelling on a Oneworld member airline.[120][121]

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Cathay Pacific Company Overview - Research for CX Account

The Wing, Cathay Pacific's flagship airline lounge at Hong Kong International Airport

Gold Gold tier level is achieved or retained when the member earns 60,000 Club Miles or 40 Club Sectors during the membership year. Additional benefits for Gold Card members include guaranteed Economy Class seat on Cathay Pacific or Dragonair flights booked 72 hours before departure, 15 kg (33 lb) or one piece of extra baggage allowance, Business Class lounge access with one guest when flying Cathay Pacific or Dragonair operated flights and arrival lounge access when flying Cathay Pacific or Dragonair operated and marketed flights. Marco Polo Club Gold tier status is equivalent to Oneworld Sapphire tier status, which entitles members to Oneworld Sapphire benefits when travelling on a Oneworld member airline.[120] Diamond The second highest tier in the Marco Polo Club. Diamond tier level is achieved or retained when the member earns 120,000 Club Miles or 80 Club Sectors during the membership year. Additional benefits for Diamond Card members include top priority waitlisting, guaranteed Economy Class or Business Class seat on Cathay Pacific or Dragonair flights booked 24 hours before departure, First Class check-in counters, 20 kg (44 lb) or one piece of extra baggage allowance, First Priority baggage handling, First Class lounge access with two guests when flying Cathay Pacific or Dragonair operated flights and Business Class lounge access with two guests when flying on any airline. Marco Polo Club Diamond tier status is equivalent to Oneworld Emerald tier status, which entitles members to Oneworld Emerald benefits when travelling on a Oneworld member airline.[120] Diamond Plus The highest tier in the Marco Polo Club. Diamond Plus tier level offered annually to the top one percent of Diamond members worldwide in recognition of their exceptional and consistent travel performance and their contribution to Cathay Pacific and Dragonair. Diamond Plus and Diamond members are considered in the same tier in every aspect. However, Diamond Plus get extra perks consisting of "Nomination of one companion to the Diamond tier", "Access to CX First Class lounges regardless which airline they are flying". Marco Polo Club Diamond Plus tier status is equivalent to Oneworld Emerald tier status, which entitles members to Oneworld Emerald benefits when travelling on a Oneworld member airline.[122]

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Cathay Pacific Company Overview - Research for CX Account

Asia Miles

Asia Miles logo

Asia Miles is a more traditional travel rewards programme in which Mileage Credits are accumulated by flying on Cathay Pacific, Dragonair or a partner airline. Mileage Credits can also be earned by spending through a number of hotels, credit card companies, car rental agencies, telecommunication companies and other non-airline channels. These miles can then be redeemed for flights or other products and services. Asia Miles membership is free; however, membership will be suspended after 36 months of inactivity, and can be closed without notice, once all remaining mileage credits have expired.[123][124]

SERVICES

Ground handling

Self-check in kiosks at Hong Kong International Airport

On 22 January 2007 and 18 December 2008 respectively, Cathay Pacific launched more methods to check-in for flights. Among them were self-check in utilizing a kiosk at Hong Kong International Airport and select destinations globally. Another checking in via a mobile phone. Worldwide, only a limited number of other airlines offer these options. Cathay Pacific later announced, on April 17, 2009, the airline's first ever Mobile Boarding Pass application, dubbed CX Mobile, was launched. Passengers can use the application to check flight arrivals and departures, check-in for their flights, read about the destination they are flying to using City Guides. CX Mobile has become a hit with passengers, making

25

Cathay Pacific Company Overview - Research for CX Account Cathay Pacific into one of the industry leaders in offering mobile services to users of smart phones.[125][126][127] Cathay Pacific is also now following a trend among many airlines to improve its brand image to customers and shareholders with social media, and is ranked fourth worldwide.[128] The airline now utilizes range of social media tools including Facebook, Flickr, Twitter, YouTube and blogging to share ideas with customers.[129] In addition, it has launched a virtual tour to enable passengers to experience Cathay Pacific's new cabins and services without even having to step aboard the aircraft.[130] As of 4 January 2011, the cargo division of the airline, Cathay Pacific Cargo, has become the first airline operating out of Hong Kong to fully switch to e-air waybill. This eliminates the need for all paper documents when issuing air waybills. The International Air Transport Association (IATA) selected nine countries/territories and airlines in which to run the e-AWB pilot programme, including Hong Kong and Cathay Pacific.[131]

TRAVEL CLASSES
Cathay Pacific has been phasing in new cabin interiors and inflight entertainment since May 2007. The first aircraft with the new seats is a Boeing 747-400, which flew its first commercial flight as Cathay Pacific Flight 460 between Hong Kong and Taipei on 11 May 2007. At that time only the new First and Business Classes were installed; however this aircraft now has the new Economy seats, installed during June 2008. The rollout of the new cabins has been completed since November 2009 with the retrofit of the A340-300 fleet.[132][133]

First class

Cathay Pacific New First Class on the Boeing 747-400

The New First Class seats can be converted into a fully lie-flat bed measuring 36 81 in (91 210 cm). The new seats include a massage function, a personal closet, an ottoman for stowage or guest seating, and an adjustable 17 in (43 cm), 16:9 PTV.[134][135][136]

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Cathay Pacific Company Overview - Research for CX Account Business class After receiving extensive criticism for its high-walled herring-bone configuration business class seating on long-haul flights, which many passengers felt was too narrow and confined, Cathay Pacific embarked on a total redesign of business class seating. The new design is more conventional, emphasising the passenger's sense of personal space while also retaining privacy. The new business class seats will be fitted into all new Airbus A330-300 and Boeing 777-300ER deliveries, with existing A330-300 and 777-300ER aircraft to be upgraded to the new seating and cabin by February 2013,[137] However,the current Boeing 747-400 and Airbus A340 aircraft will not be upgraded to the new seating and cabin due to the impending retirement of those planes. The new business class seats emphasis on personal space and are equipped with a 15.4 in (39 cm) PTV with AVOD. The existing Regional Business Class is provided on Cathay Pacific's Boeing 777s (excluding the 777300ER) and selected Airbus A330-300s. Regional Business Class seats have 20 in (51 cm) width and recline to 45 in (110 cm) of pitch and feature electrical recline and leg rest. A 9 in (23 cm) PTV is located in the armrest provides 20 video and 22 audio channels but does not offer AVOD.[138][139][140]

Premium Economy class Cathay Pacific will be introducing a Premium Economy Class from March 2012.[87] The seat pitch will be 38 inches six inches more than Economy Class and the seat itself will be wider and have a bigger recline. It will have a large meal table, cocktail table, footrest, a 10.6-inch personal television, an in-seat power outlet, a multi-port connector for personal devices, and extra personal stowage space.The Premium Economy Class seat offers a higher level of comfort with more living space in a separate cabin before the Economy Class zone. Passengers will also receive an environmentally friendly amenity kit with dental kit, socks and eyeshade for use during the journey. Larger pillows and noise-cancelling headsets will be provided.The new Premium Economy cabin will be installed on all Cathay Pacific longhaul aircraft including Boeing 777-300ERs, Boeing 747-400s, Airbus A330-300s and Airbus A340-300s. The first 777-300ER and Airbus A330-300 featuring Premium Economy Class will enter into service in March, and will be available for sale in the first quarter of 2012 for flights departing from April 2012 onwards. Economy class

New Economy Class seats with fixed shell design and StudioCX screens

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Cathay Pacific Company Overview - Research for CX Account

The new Economy Class seats, offered on aircraft outfitted with the refurbished long-haul interiors, were designed by B/E Aerospace. New features of these seats include a fixed back design (shell) that allows passengers to recline without intruding on those seated behind, a 9 in (23 cm) PTV providing AVOD, AC power located behind a larger tray table, a coat hook and a literature pocket that has been relocated to below the seat cushion to create more leg room. The fixed shell of these seats has been criticised[141], and from mid 2012 Cathay Pacific will replace them with new economy seats that are much more conventional, and do not have a shell back. They will have a six inch recline (two inches over the current long-haul economy seat). These seats are 17.5 in (44 cm) in width and have 32 in (81 cm) of pitch.[142] [143] The previous Economy Class seats each feature personal 6 in (15 cm) PTVs with a choice of 25 channels. These seats are 17 in (43 cm) in width and have 32 in (81 cm) of pitch. These seats are being replaced with the New Economy Class seats on aircraft receiving the Cathay Pacific's new longhaul interior configuration.[144]

In-flight entertainment StudioCX, Cathay Pacific's in-flight entertainment system, equipped with personal TVs (PTVs) in every seat, offers the latest Hollywood blockbuster movies, popular Asian and Western TV programmes, music and games. In addition, the airline provides a range different newspapers and magazines from around the world, including the airline's award-winning in-flight magazine Discovery. Passengers with visual impairment can request for Hong Kong's South China Morning Post in Braille to be available on board.[145] On medium- and long-haul aircraft featuring the new cabin designs, StudioCX provides Audio/Video On Demand (AVOD) for every passenger and offers up to 100 movies, 350 TV programmes, 888 CD albums in 24 different genres, 22 radio channels and more than 70 interactive games. [146] Panasonic's eX2 system is installed on aircraft with the new seat configuration, and is available on all Boeing 747-400s, 777-300ERs and A340-300s, and selected Airbus A330-300s[147]. All passengers on regional aircraft are offered up to 26 video channels, 22 audio channels and 15 games on a cycle basis.[148]

CATERING
Cathay Pacific First Class fruit and cheese course

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Cathay Pacific Company Overview - Research for CX Account Food and beverages are complimentary for all long haul passengers, with two hot meals generally served on each flight even in economy, and with free alcoholic beverages.[149]. Food served on flights from Hong Kong are provided by Cathay Pacific Catering Services (CPCS) facilities in Hong Kong.[150] CLS Catering Services Limited, a joint venture with LSG Sky Chefs, provides the inflight catering from Toronto and Vancouver airports;[151][152] while Vietnam Air Caterers, a joint venture between CPCS and Vietnam Airlines, provides the inflight catering for flights from Ho Chi Minh City.[153]

AWARDS

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Cathay Pacific Company Overview - Research for CX Account

Awards Link: http://en.wikipedia.org/wiki/Cathay_Pacific#Awards

SUBSIDIARIES AND ASSOCIATES


Cathay Pacific has diversified into related industries and sectors, including ground handling, aviation engineering, inflight catering.[162] Companies with major Cathay Pacific Group stake include: Company Type Principal activities Incorporated in Group's Equity Shareholding (10 March 2010) 18.77% 49%

Air China Air China Cargo

Cooperate Joint Venture Joint Venture Subsidiary Subsidiary Subsidiary

Airline Cargo airline

China China

Air Hong Kong

Cargo airline

Hong Kong

60%

Dragonair Cathay Pacific Cargo Cathay Pacific Catering Services (HK) Limited Cathay Pacific Services Limited

Airline Cargo airline Catering services Construction

Hong Kong Hong Kong Hong Kong

100% 100% 100%

Subsidiary

Hong Kong

100%

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Cathay Pacific Company Overview - Research for CX Account Cathay Holidays Dragonair Holidays Hong Kong Airport Services Vogue Laundry Service Limited China Pacific Laundry Services VN/CX Catering Services Limited CLS Catering Services Limited Subsidiary Subsidiary Subsidiary Travel agency Travel agency Ground handling Laundry Hong Kong Hong Kong Hong Kong 100% 100% 100%

Subsidiary

Hong Kong

100%

Joint Venture Joint Venture Joint Venture

Laundry

Taiwan

45%

Catering services Catering services

Vietnam

40%

Canada

30%

Incidents and accidents

On 16 July 1948, Miss Macao, a Cathay Pacific-subsidiary-operated Consolidated PBY-5A Catalina (VR-HDT) from Macau to Hong Kong was hijacked by four men, who killed the pilot after take-off. The plane crashed in the Pearl River Delta near Zhuhai. Twenty-six people died, leaving only one survivor, a hijacker. This was the first hijacking of a commercial airliner in the world.[112] On 24 February 1949, a Cathay Pacific Douglas DC-3 (VR-HDG) from Manila to Hong Kong, crashed near Braemar Reservoir after a go-around in poor weather. All 23 people on board died.[163] On 13 September 1949, a Cathay Pacific Douglas DC-3 (VR-HDW) departed from Anisakan, Myanmar, crashed on take-off when the right hand main gear leg collapsed. There were no reported fatalities.[164] On 23 July 1954, Cathay Pacific VR-HEU, a Cathay Pacific Douglas DC-4 (VR-HEU) from Bangkok to Hong Kong was shot down by the People's Liberation Army Air Force in the South China Sea near Hainan Island. Ten people died, leaving eight survivors. After the incident, Cathay Pacific received an apology and compensation from the People's Liberation Army Air Force. It was apparently mistaken for a Nationalist plane.[114] On 5 November 1967, Cathay Pacific Flight 33, operated by a Convair 880 (VR-HFX) from Hong Kong to Saigon, over-ran the runway at Kai Tak Airport. One person was killed and the aircraft was written-off. On 15 June 1972, Cathay Pacific Flight 700Z, operated by a Convair 880 (VR-HFZ) from Bangkok to Hong Kong, disintegrated and crashed while the aircraft was flying at 29,000 feet (8,800 m)

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Cathay Pacific Company Overview - Research for CX Account over Pleiku, Vietnam after a bomb exploded in a suitcase placed under a seat in the cabin, killing all 81 people on board.[165]

On 13 April 2010, Cathay Pacific Flight 780, operated by an Airbus A330-300 registered as B-HLL, experienced engine failure due to contaminated fuel, forcing the plane to land at almost twice the speed of a normal landing at Hong Kong, suffering minor damage. 57 passengers were injured, and 10 were taken to the hospital with 1 passenger suffered from serious injury.[166][167]

See also Hong Kong portal Companies portal Aviation portal


List of airlines of Hong Kong List of airports in Hong Kong List of companies of Hong Kong Transport in Hong Kong Dragonair

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Cathay Pacific Company Overview - Research for CX Account 39. 40. 41. 42. 43. 44. ^ a b "Cathay, Air China Deal Enables Dragonair Purchase". Business Travel News. Retrieved 28 July 2009.[dead link] ^ "Dragonair to more than double size of cargo fleet by end-2008" (Press release). Dragonair. 6 May 2004. Retrieved 4 July 2009. ^ "Dragonair gets green light for Sydney/Hong Kong services". Travel Weekly (Reed Business Information). 19 April 2004. Retrieved 4 July 2009.[dead link] ^ "Fast Facts Number of Staff". Dragonair. Retrieved 4 July 2009. ^ "Cathay Pacific takes 60th Anniversary Skyshow On the road" (Press release). Cathay Pacific. 20 May 2006. Retrieved 4 July 2009. ^ "Major International Airlines Agree to Plead Guilty and Pay Criminal Fines Totaling More Than $500 Million for Fixing Prices on Air Cargo Rates" (Press release). United States Department of Justice. 26 June 2008. Retrieved 4 July 2009. ^ "Announcement Plea Agreement with United States Department of Justice" (PDF) (Press release). Cathay Pacific. 26 June 2008. Retrieved 4 September 2009. ^ a b Leung, Wendy (11 March 2009). "Cathay Pacific to delay planes, review routes on loss". Bloomberg L.P.. Retrieved 19 August 2009. ^ Chan, Sue Ling (15 April 2009). "Cathay, Singapore Face Tough Decisions". Bloomberg L. P.. Retrieved 20 August 2009. ^ Akkermans, Joost; Leung, Wendy (17 March 2009). "Cathay Pacific's Tyler doesn't expect recovery soon". Bloomberg L. P.. Retrieved 19 August 2009. ^ "Cathay Pacific last year, a record profit of 14 billion Hong Kong dollars". Chinahourly. Retrieved 23 October 2011. ^ "Cathay Pacific announces senior management changes". Cathaypacific.com. Retrieved 23 October 2011. ^ Rutherford, Hamish (28 April 2011). "Commission drops some airline charges". Stuff. New Zealand. Retrieved 23 September 2011. ^ "Hong Kong". Cathay Pacific. Retrieved 8 September 2010. "Address Head Office: Cathay Pacific City, 8 Scenic Road, Hong Kong International Airport, Lantau, Hong Kong Registered office: 33rd Floor, One Pacific Place, 88 Queensway, Hong Kong" ^ " > > > ." Cathay Pacific. Retrieved on 7 November 2011. " 8 8833" ^ Walker, Karen. "Hangover cure." Airline Business at Flight International. 1 December 1997. Retrieved on 7 November 2011. ^ "Cathay Pacific wins award for providing a smoke-free workplace at its Hong Kong Headquarters" (Press release). Cathay Pacific. 6 January 2005. Retrieved 2 July 2009. ^ "World Airline Directory" (PDF). Flight International. 30 March 1985. p. 68. Retrieved 17 June 2009. "Head Office: Swire House, 9 Connaught Road, C, Hong Kong" ^ "MARKETING Rx : Right corporate brand equity for service firm". Inquirer. Retrieved 13 September 2009. ^ "Meet Our Team". Cathay Pacific. Retrieved 22 August 2009. ^ "History A Change of Image". Cathay Pacific. Retrieved 4 July 2009. ^ "Brand Overview Background to Brand Hong Kong". Brand Hong Kong. Government of Hong Kong. August 2007. Retrieved 4 July 2009.[dead link] ^ "Primary Signature" (PDF). Brand Hong Kong. Government of Hong Kong. February 2003. Archived from the original on 29 January 2007. Retrieved 4 July 2009. ^ a b "Fact Sheet Routes and Destinations". Cathay Pacific. Retrieved 16 June 2009.

45. 46. 47. 48. 49. 50. 51. 52.

53.

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Cathay Pacific Company Overview - Research for CX Account 63. 64. 65. 66. ^ "Cathay Pacific to resume Colombo services on 22 April" (Press release). Cathay Pacific Cargo. 4 April 2007. Retrieved 23 July 2009. ^ "Cathay Pacific to resume flights to Colombo" (Press release). Cathay Pacific Cargo. 12 February 2008. Retrieved 23 July 2009. ^ "Cathay Pacific Airways Limited Annual Report 2008" (PDF). Cathay Pacific. 6 April 2009. p. 6. Retrieved 23 July 2009. ^ "Cathay Pacific boosts services to Paris, Shanghai and Jakarta. In 2009, services increased once again to Toronto and Vancouver./www.cathaypacific.com/cpa/en_HK/aboutus/pressroomdetails?refID=98f863 350920f110VgnVCM62000007d21c39____" (Press release). Cathay Pacific. 23 January 2009. ^ "Cathay Pacific to launch new service to Jeddah, its second destination in Saudi Arabia" (Press release). Cathay Pacific. 22 July 2009. Retrieved 23 July 2009. ^ [1][dead link] ^ Cathay Pacific launches new services to Chicago and Abu Dhabi, boosts frequencies to New York and Toronto ^ "Destinations". Cathay Pacific. Retrieved 2 July 2009. ^ "Alliances and Partnerships". Cathay Pacific. Retrieved 4 September 2009. ^ Cathay Pacific expands its network in North America with Alaska Airlines code-share ^ "Airline Partners". Virgin America. Retrieved 23 October 2011. ^ "Our airline partners". Westjet.com. Retrieved 23 October 2011. ^ "New HKSAR/France air services arrangement provides new code-share opportunities" (Press release). Government of the Hong Kong Special Administrative Region. 17 June 2004. Retrieved 2 July 2009. ^ "Boeing and Cathay Pacific Announce Order for 10 747-8Fs and Seven 777-300ERs" (Press release). Boeing. 8 November 2007. Retrieved 4 July 2009. ^ Cheung, Clare; Shen, Irene (8 November 2007). NJawQ&refer=china "Cathay Pacific Orders 17 Boeing Jets on China Growth (Update3)". Bloomberg L.P.. Retrieved 11 July 2009. ^ "Cathay Pacific Group fleet to number 200 in five years with latest aircraft order" (Press release). Cathay Pacific. 6 December 2007. Retrieved 4 July 2009. ^ "Cathay Pacific: no plans for 787 or A380". ABCmoney. co. uk. 30 October 2007. Retrieved 4 July 2009. ^ Rothwell, Steve (8 June 2010). "Cathay, Air France-KLM Embrace Airbags as Safety Rules Tighten". Bloomberg. ^ Cathay Pacific Fleet of A340 (Stored) | Airfleets aviation ^ Cheng, Wing-Gar (4/8/10). "Cathay Pacific Orders 36 Planes After Profit Beats Expectations". Bloomberg. Retrieved 4 August 2010. ^ Cheng, Wing-Gar (25 November 2010). "Cathay Pacific to Boost Capacity 11% Next Year on Global Travel Pickup". Bloomberg. ^ "AFP: Cathay Pacific orders 27 Airbus and Boeing planes". Google. 8 March 2011. Retrieved 23 October 2011. ^ http://www.cathaypacific.com/cpa/en_INTL/aboutus/pressroomdetails?refID=cb27041f9c 1b1310VgnVCM1000000ad21c39____ ^ "Cathay Pacific inks deal for six more A350-900s". Flightglobal. Retrieved 20 January 2012.

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Cathay Pacific Company Overview - Research for CX Account 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. ^ a b "Cathay Pacific to launch Premium Economy on 777-300ER from Mar 2012". Airline Route. Retrieved 20 August 2011. ^ "Cathay Pacific to launch Premium Economy on A330-300 from Mar 2012". Airline Route. Retrieved 22 August 2011. ^ "Cathay Pacific to Launch 4-class Boeing 777-300ER from Sep 2012". Airline Route. Retrieved 01 March 2012. ^ "Cathay Pacific to Launch Premium Economy on Boeing 747 from June 2012". Airline Route. Retrieved 01 March 2012. ^ "Cathay Pacific S12 Planned New Inflight Product Operation as of 09JAN12". Airline Route. Retrieved 01 March 2012. ^ "Cathay Pacific Cargo". Cathay Pacific Cargo. Retrieved 2 September 2009. ^ "World Airline Report The World's Top 25 Airlines 2008". Air Transport World (Penton Media). July 2009. ^ Boeing: First 747-400 Boeing Converted Freighter Takes Flight ^ "Major Transaction Purchase of 6 Boeing 747-400ERF Freighters" (PDF) (Press release). Cathay Pacific. 29 June 2006. Retrieved 5 July 2009. ^ [2] ^ "Airport Authority Awards New Cargo Terminal Franchise to Cathay Pacific Services Limited" (Press release). Airport Authority Hong Kong. 18 March 2008. Retrieved 4 July 2009. ^ "Agreement on deferral of completion of third cargo terminal" (Press release). Cathay Pacific. 15 January 2009. Retrieved 4 July 2009. ^ "Cathay Pacific B-HIB Photo Search Result". Airliners.net. Retrieved 4 July 2009. ^ "Cathay Pacific Welcomes Arrival Of New "Spirit Of Hong Kong"" (Press release). Cathay Pacific. 17 January 2000. Retrieved 4 July 2009. ^ "Cathay Pacific Picture of the Boeing 747467 aircraft Right". Airliners.net. Retrieved 4 July 2009. ^ "Cathay Pacific Picture of the Boeing 747467 aircraft Left". Airliners.net. Retrieved 4 July 2009. ^ "Cathay Pacific holds Open Day for "Asia's World City" Aircraft" (Press release). Cathay Pacific. 5 July 2002. Retrieved 4 July 2009. ^ "Cathay Pacific B-KPF Photo Search Results". Airliners.net. Retrieved 4 July 2009. ^ a b "Cathay Pacific's 100th Aircraft Greets the Past" (Press release). Cathay Pacific. 1 September 2006. Retrieved 4 July 2009. ^ "Cathay Pacific B-LAD Picture of the Airbus A330-343X aircraft". Airliners.net. Retrieved 4 July 2009. ^ "Cathay Pacific celebrates Oneworld 10th anniversary with first aircraft in alliance livery" (Press release). Cathay Pacific. 12 March 2009. Retrieved 23 June 2009. ^ "Oneworld (Cathay Pacific Airways) Pictures & Photos". Airliners.net. Retrieved 23 June 2009. ^ "Cathay Pacific Airways 's Photos Wall Photos". Cathay Pacific. Retrieved 19 October 2009. ^ a b "Vintage Aircraft Brings the Past Alive at Cathay Pacific Headquarter's in Airlines 60th Anniversary Year" (Press release). Cathay Pacific. 5 September 2006. Retrieved 4 July 2009. ^ a b c "The Cathay Pacific Fleet". Cathay Pacific. October 1996. Archived from the original on 4 February 1997. Retrieved 23 July 2009.

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111.

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Cathay Pacific Company Overview - Research for CX Account 112. 113. 114. 115. 116. 117. 118. 119. 120. 121. ^ a b "Hijacking description Consolidated PBY-5A Catalina VR-HDT". Aviation Safety Network. Retrieved 2 July 2009. ^ Kebabjian, Richard. "Accident details Convair CV-880-22M-3 VR-HFX". planecrashinfo.com. Retrieved 2 July 2009. ^ a b Kebabjian, Richard. "Accident details Douglas DC-4 VR-HEU". planecrashinfo.com. Retrieved 2 July 2009. ^ a b "FS2004 Lockheed L-1011 TriStar Cathay Pacific Update Package". fsplanet.com. Retrieved 25 July 2009. ^ a b "The Marco Polo Club". Cathay Pacific. Retrieved 3 July 2009. ^ http://downloads.cathaypacific.com/cx/press/SDreport_en2009.pdf ^ "CX World April 2010". Cathay Pacific. Retrieved 20 April 2010. ^ "The Marco Polo Club Terms and Conditions". Cathay Pacific. Retrieved 3 July 2009. ^ a b c d "Club Benefits". Cathay Pacific. Retrieved 3 July 2009. ^ "Cathay Pacific and Dragonairs frequent flyers enjoy faster immigration clearance through Frequent Visitor e-Channels" (Press release). Cathay Pacific. 14 September 2009. Retrieved 14 September 2009. ^ "Diamond Plus Tier" (Press release). 12 August 2010. Retrieved 23 October 2011. ^ "Asia Miles". Cathay Pacific. Retrieved 3 July 2009. ^ "Asia Miles Terms and Conditions". Asia Miles. Cathay Pacific Loyalty Programmes Ltd. Retrieved 3 July 2009. ^ "About Mobile Check-In". Cathay Pacific. Retrieved 2 September 2009. ^ Ko, Carol (22 January 2009). "Check-in on Cathay Pacific with mobile phones". MIS Asia. Retrieved 2 September 2009.[dead link] ^ "Cathay Pacific emerges as industry leader with new mobile application" (Press release). Cathay Pacific. 1 September 2009. Retrieved 2 September 2009. ^ "Clickable Data: Airline Social Media All-Stars". Stephen Michaelson. Retrieved 17 September 2009.[dead link] ^ "Cathay Pacific Blog". Cathay Pacific. Retrieved 22 August 2009. ^ "Experience Cathay Pacific without stepping on the plane". Shashank Nigam. Retrieved 22 August 2009. ^ Cathay Pacific rolls out electronic air waybills in Hong Kong,marking important step in transition to e-freight ^ "Cathay Pacific Airways Limited 2009 Interim Report" (PDF). Cathay Pacific. 2009. p. 5. Retrieved 4 September 2009. ^ "CX New Business Class had 3 different styles...?". Wings900.com. 11 March 2007. Retrieved 25 July 2009. ^ "New First Class". Cathay Pacific. Retrieved 4 July 2009. ^ "Your Guide to the First Class Suite" (PDF). Cathay Pacific. Retrieved 4 July 2009. ^ "Cathay Pacific B747-400 (new product)". seatplan.com. Panacea Publishing International Ltd. Retrieved 23 October 2011. ^ http://downloads.cathaypacific.com/cx/press/cxw/pdf/New%20Business%20Class%20bac kgrounder.pdf ^ "Regional Business Class". Cathay Pacific. Retrieved 4 July 2009. ^ "Regional Business Class Entertainment and Cuisine". Cathay Pacific. Retrieved 4 July 2009. ^ "Business Class Comparison Chart". seatguru.com. TripAdvisor LLC. Archived from the original on 15 June 2008. Retrieved 4 July 2009.

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138. 139. 140.

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Cathay Pacific Company Overview - Research for CX Account 141. 142. 143. 144. 145. 146. 147. 148. 149. 150. 151. 152. 153. 154. 155. 156. 157. 158. 159. 160. 161. 162. 163. 164. 165. 166. 167. ^ . http://www.airreview.com/Cathay/Fleet.htm. ^ "New Economy Class". Cathay Pacific. Retrieved 4 July 2009. ^ "Cathay Pacific A330 International Economy Seat Chart". Airreview. Retrieved 13 Jan 2012. ^ "Cathay Pacific Airways Limited 2007 Interim Report" (PDF). Cathay Pacific. 2007. p. 5. Retrieved 11 July 2009. ^ "Reading Materials". Cathay Pacific. Retrieved 4 July 2009. ^ "Cathay Pacific IFE". Airreview. Retrieved 13 Jan 2012. ^ "Cathay Pacific A340". Airreview. Retrieved 13 Jan 2012. ^ "Entertainment". Cathay Pacific. Retrieved 4 July 2009. ^ "Cathay Pacific Inflight service". Airreview. Retrieved 13 Jan 2012. ^ "Cathay Pacific Catering Services Customers". Cathay Pacific Catering Services. Retrieved 3 July 2009. ^ "LSG Sky Chefs Toronto (YYZ)". LSG Sky Chefs. LSG Lufthansa Service Holding AG. Retrieved 3 July 2009. ^ "LSG Sky Chefs Vancouver (YVR)". LSG Sky Chefs. LSG Lufthansa Service Holding AG. Retrieved 3 July 2009. ^ "Our Airline Customers Customer List". VN/CX Catering Services Ltd. Archived from the original on 22 February 2008. Retrieved 3 July 2009. ^ a b c d e "ATW Industry Achievement Awards Description & History". Air Transport World. Archived from the original on 11 June 2008. Retrieved 5 July 2009. ^ a b c d e f g h i "World Travel Awards". World Travel Awards. Retrieved 5 July 2009. ^ a b "British Airways was the big winner at the 25th Anniversary OAG Airline of the Year Awards". Official Airline Guide. 17 April 2007. Retrieved 25 July 2009.[dead link] ^ a b c "The World's Official 5-Star Airlines". Skytrax. Retrieved 5 July 2009. ^ a b c "A-Z Index of World Airline Award Winners". Skytrax. Retrieved 5 July 2009. ^ Cheng, Jonathan (4 September 2009). "Cathay Pacific, Braving Tests, Tops Hong Kong List". Wall Street Journal. Retrieved 4 September 2009. ^ http://downloads.cathaypacific.com/cx/press/cxw/pdf/CXW165.pdf ^ "Cathay Pacific Airways wins the Best Transpacific Airline award at 2010 World Airline Awards" (Press release). Skytrax. Retrieved 10 October 2010. ^ "Aviation Hong Kong". Swire Pacific. Archived from the original on 25 June 2008. Retrieved 3 April 2010. ^ "Accident description Douglas C-47A-90-DL VR-HDG". Aviation Safety Network. Retrieved 2 July 2009. ^ "Accident description Douglas C-47A-30-DK VR-HDW". Aviation Safety Network. Retrieved 11 October 2011. ^ "Criminal Occurrence description Convair CV-880-22M-21 VR-HFZ". Aviation Safety Network. Retrieved 2 July 2009. ^ Hong Kong Civil Aviation Department Accident Bulletin Number 3/2010 retrieved 31 August 2010 ^ Hong Kong Civil Aviation Department Accident Bulletin Number 1/2010

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Cathay Pacific Company Overview - Research for CX Account Cathay Pacific Airways Limited Source: http://www.fundinguniverse.com/company-histories/Cathay-Pacific-Airways-Limited-companyHistory.html Address: 35th Floor, Two Pacific Place 88 Queensway Hong Kong Telephone: +852-2747-5210 Toll Free: 800-233-2742 Fax: +852-2810-6563 http://www.cathaypacific.com Statistics: Public Company Incorporated: 1946 as Cathay Pacific Airways Employees: 14,000 Sales: HK$28.70 billion (1999) Stock Exchanges: Hong Kong Singapore NAIC: 481111 Scheduled Passenger Air Transportation; 481112 Scheduled Freight Air Transportation

Company Perspectives:

To Cathay Pacific, a great flight is not just about providing a smooth check-in, good food and comfortable seats, it is about anticipating what a customer wants before they need to ask. Cathay Pacific believes that the true long-term differentiation between ourselves and our competitors is the unique service style provided by our staff. Our research has shown that service has an even greater impact on passengers' perceptions than the product we offer. To Cathay Pacific, this shows that training and investing in our staff has just as significant a return as our investment in high technology. For this reason, we have been focusing on developing a culture of service excellence. We call this new culture 'Service Straight From the Heart.'

Key Dates:

1946: American and Australian pilots establish Cathay Pacific in Shanghai. 1948: Swire trading house buys into Cathay Pacific. 1959: Cathay Pacific merges with BOAC's Hong Kong Airways. 1987: China invests in Cathay Pacific through CITIC. 1996: Swire reduces its holdings to 44 percent. 1997: Great Britain returns Hong Kong to China. 1998: Cathay Pacific posts its first loss in 36 years.

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Cathay Pacific Company Overview - Research for CX Account

Company History: After World War II, Cathay Pacific Airways Limited grew from a small regional airline to a prosperous international carrier fueled by trade and tourism. After the 1997 transition to Chinese rule in Hong Kong, the carrier has had to redefine its role at the gateway of southern China. In spite of a traditional determination to go it alone, Cathay Pacific joined the one-world alliance, spearheaded by American Airlines and British Airways, to economically maintain a global presence. Origins Cathay Pacific's roots date back to 1946 when 34-year-old American businessman and pilot Roy Farrell teamed up with an adventurous 32-year-old Australian pilot, Sydney de Kantzow, who had been flying the 'Hump' (the route from Calcutta over Burma to Chungking) during World War II. Originally operating out of Shanghai with a lone DC-3, the two entrepreneurs soon moved their operations to Hong Kong, where they were required to officially register their company with the British colonial government. Together they registered Cathay Pacific Airways' corporate papers on September 24 of that year, also forming the Roy Farrell Import-Export Company which, for tax purposes, would lease aircraft from Cathay Pacific. By the end of 1946 the airline had acquired a second DC-3 and had carried 3,000 passengers and 15,000 kilos of cargo between Australia and Asia. In 1947 Cathay Pacific added five more DC-3s and two smaller aircraft known as Catalina 'flying boats,' which allowed the airline to begin service to Macao, a nearby Portuguese colony on the coast of China. In these years immediately following World War II, Farrell and de Kantzow had to contend with Asia's shifting political boundaries, and their passengers enjoyed few of the comforts that today's transcontinental passengers have come to expect. The Roy Farrell Import-Export Company proved to be a profitable enterprise, operating out of an office on Ice House Street in Hong Kong; at this time it was advertising Australian oysters (considered a delicacy in the British Crown Colony) available by air within 32 hours of their harvesting. By 1948 Cathay Pacific had a passenger ticket office in the lobby of the Peninsula Hotel, among the colony's most prestigious establishments. While flight crews were recruited mostly from Australia and the United States, de Kantzow began staffing passenger flights with Portuguese stewardesses from Macao and Hong Kong. Swire Invests in 1948 Early in 1948, Farrell and de Kantzow were informed by the British governor of Hong Kong that, as foreigners, they were barred from owning more than 20 percent of the airline; a British partner would have to be recruited. After negotiations with the British air transport company Skyways ended unsuccessfully, Cathay Pacific's founders turned to John Kidston 'Jock' Swire, head of Butterfield & Swire, a leading trading company in Hong Kong. Farrell and de Kantzow believed that a British partner would be willing to pay a great deal to join their profitable business. The airline industry was at a crossroads, as 'tramp' airlines running charter flights were giving way to increasingly competitive scheduled airline operations. Since 1946, the Bermuda agreement between the United States and the United Kingdom had regulated the routes airlines could service and the fares they could charge, marking a new era of government restrictions. Swire's influence

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Cathay Pacific Company Overview - Research for CX Account with the British government made him an advantageous partner. From Swire's point of view, Cathay Pacific had a convenient competitor: Hong Kong Airways, run by Swire's longtime business rival, Jardine Matheson. Negotiations with Swire were fruitful, and in July 1948 the new Cathay Pacific Airways was officially registered. The first known incident of air piracy occurred that same month when a Cathay Pacific flight, ten miles from Macao and carrying 23 passengers, was hijacked by a Chinese gunman who apparently believed the plane was carrying a cargo of gold bullion. The flight's captain, Dale Cramer, was shot in the head, and the plane crashed into the Pearl River estuary; there was only one survivor. De Kantzow and Farrell decided to use metal detectors on all passengers and baggage on subsequent flights. The same year, Farrell's wife became ill and he decided to sell his stake in the airline and return to Texas, leaving Cathay Pacific a 90 percent British-owned company. The airline faced increasing competition from Hong Kong Airways, which had been purchased by the British Overseas Airways Corporation (BOAC--now British Airways). While the British government in London tended to give favorable treatment to BOAC, Hong Kong's local government had grown more independent as the colony gained economic power, and gave its support to Cathay Pacific. Cathay Pacific had an additional advantage. Hong Kong Airways was obliged to offer its European passengers all the luxury and personal service they had come to expect from BOAC. Cathay Pacific, on the other hand, as a regional airline increasingly catering to the small Chinese traders accustomed to traveling on Swire's ships, did not have to offer expensive frills and consequently saved on overhead costs. Under Swire's tutelage, de Kantzow instituted a number of changes. Swire's right-hand man Ian Grabowsky revamped Cathay Pacific's lax accounting procedures. More pilots were hired and each flew fewer hours, to stave off fatigue and possible mishaps. Eventually de Kantzow tired of Swire's control and announced his resignation from Cathay Pacific in April 1951. The parting appeared to be an amicable one. Cathay Pacific suffered losses in 1951 approaching HK$1.5 million, a figure which increased over the next few years. Swire recognized the need to replace the airline's aging fleet with new aircraft, and began to look for a new partner for the company. In 1953 the London-based P & O shipping company paid HK$2.5 million for a 31.2 percent stake in the airline. At this time, two important executives joined Cathay Pacific's management team: Captain Kenneth Steele became flight superintendent in charge of training flight crews, and senior engineer Jack Gething took over the Hong Kong Aviation Engineering Company, a division of Cathay Pacific responsible for airplane maintenance. In September 1958, a new 8,350-foot runway was opened at Hong Kong's Kai Tak airport, in time for the arrival of Cathay Pacific's new DC-6 aircraft. That same year, Captain Bob Howell took the first DC-6 from Hong Kong to London. The larger, more modern airplane also pioneered the Hong Kong-Taipei-Tokyo route. Merging into the 1960s In 1959 BOAC, having endured heavy losses throughout the decade, agreed to merge Hong Kong Airways with Cathay Pacific. Swire's organization gained control of the airline, while BOAC received a

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Cathay Pacific Company Overview - Research for CX Account seat on its board of directors. By the following year, Cathay Pacific's fleet of new aircraft included a DC3, a DC-4, a DC-6, a DC-6B, and, notably, two Electra jets. At this time, Bill Knowles became the airline's chairman and Duncan Bluck its commercial manager. Hong Kong's growing importance as an economic power resulted in an increasing number of routes serviced by Cathay Pacific. Late in 1959 the airline began flights to Sydney, prompting Qantas, Australia's national airline, to retaliate by announcing its own Sydney-Hong Kong jet service. The British government urged Swire to aggressively compete with Qantas to prevent an Australian concern from gaining an economic foothold in Hong Kong. This scenario proved typical in years to come: Swire saw his company simply as a regional airline flying to regional destinations such as Manila and Singapore, but to the British government Cathay Pacific was a British-owned company playing a major role in advancing Hong Kong to a position of economic prosperity and leadership in the region. In this instance, the matter was settled in August 1961 when Qantas, with the help of government subsidies, began flying newer, more expensive Boeing 707s to Hong Kong, forcing Cathay Pacific out of that particular market. The loss of the Sydney-Hong Kong route to Qantas convinced Swire not to attempt to compete with government-backed intercontinental carriers; to his thinking, the objective was to offer the best service in the Asian market, not necessarily the best in the world. But Swire's regional view was opposed by commercial manager Bluck. Throughout the early 1960s, Bluck argued for more flights to Japan, which had experienced tremendous economic growth in the postwar years, and for flights to Canada and the United States, which were doing an increasing amount of business with Asian nations. Bluck also urged the purchase of better, more expensive planes for Cathay Pacific's fleet. Bluck's boardroom arguments succeeded. In January 1962, Cathay Pacific announced that it would purchase new Convair 880 jets manufactured by General Dynamics in the United States. The first Convair 880 arrived in Hong Kong in November 1964. By 1968, Cathay Pacific had five of the jets in its fleet, having retired or sold its other aircraft. During this time there had been changes in management as well: in 1963 Gething and Steele retired and were succeeded by Don Delaney as engineering director and Dave Smith as flight superintendent. A year later, Bill Knowles retired from his position as chairman and was replaced by H.J.C. (John) Browne. Early in 1965 Browne informed Cathay Pacific's board that the expansion into the Japanese market was a success, with passenger traffic for the airline up 26 percent over the previous year and well over half a million passengers carried into and out of Kai Tak airport in 1964. Three ticket offices had opened in Japan, which, along with Taiwan, now accounted for 90 percent of the airline's passenger capacity. In 1965, Jock Swire retired, leaving Cathay Pacific in the hands of his two sons, John and Adrian. On June 15, 1972, one of Cathay Pacific's Convair jets was involved in what seemed at first to have been a midair collision over Vietnam. After initial speculation regarding the identity of the other aircraft, investigators turned to the possibility of a bomb having been placed on board. British and Hong Kong police identified their prime suspect: a Thai policeman whose recently insured wife and child had been on board the flight. Charged with sabotage and murder, in May 1974 the policeman was found not guilty; no further suspects were ever brought to trial. Global Expansion in the 1970s and 1980s The tragedy did not dissuade Cathay's directors from expansion. By 1974, eleven 707s had been added to the airline's fleet. That same year, Cathay renewed its Hong Kong-Sydney service with 707s, putting

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Cathay Pacific Company Overview - Research for CX Account its earlier defeat by Qantas behind it. The success of the Australian run was followed in 1976 by thriceweekly flights to the Arabian Gulf, first to Bahrain, and later to Dubai in the United Arab Emirates. Asian laborers were increasingly in demand throughout the Gulf following the 1973 oil crisis and newly wealthy Arab sheiks were eager to purchase the high-tech electronic products then available in Hong Kong. But getting acceptance from London for Cathay Pacific, sporting a union jack on its tail, to fly the 'Golden Route' from Hong Kong to London proved a surprisingly drawn-out process. In December 1979, the Hong Kong airline applied to the United Kingdom's Civil Aviation Authority for a license to land in London. But British Airways, enjoying a monopoly on the Hong Kong-London route, fought Cathay Pacific's application at Civil Aviation Authority hearings. To complicate matters still further, British Airways' rival British Caledonian joined with Laker Airways to compete with Cathay Pacific for the run to Hong Kong. Finally, in March 1980, London authorities ruled against Cathay's application, choosing British Caledonian instead. The news was difficult to accept in the Cathay boardroom. The Hong Kong airline appealed, and was finally granted a license in June of that year to land in London. Cathay Pacific joined other deluxe international carriers by taking two jumbo 747s into its fleet. In 1981, Cathay Pacific carried over three million passengers and 97 million kilos of cargo to 23 destinations. A year later, six 747s were employed on its routes, some flying to London nonstop in 14 hours. Another international destination added in 1983 was Vancouver, which had one of the largest Chinese communities abroad. In 1984 Bluck, who had become chairman of Cathay Pacific, answered charges that Asian airlines were prospering because of the low wages paid to their workers and lower overheads than faced by Western airline carriers. Bluck, quoted in Gavin Young's Beyond Lion Rock, responded, 'Japanese cars, VTRs and TV sets have been able to penetrate western markets because of quality, reliability, the application of modern technology and price. So too will Asia-Pacific airlines continue to win customer support, not by low prices but by quality of service.' In 1986 Cathay Pacific carried nearly 4.2 million passengers and 182 million kilos of cargo on its way to becoming a beneficiary of the economic boom then developing in the Asian Pacific region. Hong Kong's proximity to burgeoning centers of growth in southern China were expected to further benefit Cathay Pacific. The impending takeover of the colony in 1997 by the Chinese government, however, was seen as a potential liability. The political change was expected to hinder the airline's attempts to win crucial air service rights through bilateral agreements with other countries. In anticipation of the change in government, the Swire Group announced in January 1987 that it was reducing its share of ownership in Cathay Pacific. This was followed by an announcement that the China International Trade and Investment Corporation (CITIC), China's principal commercial arm in Hong Kong, was taking a 12.5 percent shareholding in the airline. The Chinese government stake, coupled with the airline's welcoming a new director onto its board--Larry Yung, son of the CITIC's chairman--was seen by observers as proof that China was sincerely interested in the future prosperity of Cathay Pacific and Hong Kong in general. New Rules in the 1990s In 1991, the airline posted profits of HK$2.95 billion, just slightly below 1990 profits of HK$2.99 billion. Maintaining its profitability was an impressive achievement at a time when many U.S. and European airlines were floundering amid recessionary and Gulf War woes. Also at that time, drawn-out

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Cathay Pacific Company Overview - Research for CX Account negotiations between London and Peking appeared close to ending, suggesting agreement on a new international airport to be built on Hong Kong's Chek Lap Kok Island at an estimated cost of HK$13 billion. Scheduled to open in 1997, the new airport was expected to face increasing competition from low-cost airports in neighboring Macao and Shenzen, China. Cathay's forecasts predicted its cargo business growing by eight percent per year throughout the 1990s. Transporting freight had contributed approximately 20 percent of overall airline revenue in the first six months of 1991. Richard Cater, Cathay Pacific's cargo marketing manager, stated in the February 24, 1992 issue of Aviation Week & Space Technology, 'We see ourselves as a passenger airline with a very important cargo element.' The growing cargo business was welcome at a time of recessionary gloom in much of the Western world, and falling airline passenger traffic due to the Persian Gulf War. Although Cathay Pacific remained profitable under the Swire Group's control, lingering uncertainties over the outlook for Hong Kong under Chinese rule clouded the company's business strategy. Despite the instability of the world economy, Cathay Pacific counted on its reputation as a premier Asian carrier and on a continuation of the Asian-Pacific economic boom to maintain its place in the global airline trade. Peter Sutch led Cathay Pacific as managing director beginning in 1992. He subsequently became chairman of the company as well as its parent, John Swire & Sons (HK) Ltd. David M. Turnbull took over as managing director in December 1996, replacing Rod Eddington, who returned to Australia to lead Ansett Airlines. In 1996, Swire Pacific sold a major portion of its airline holdings to Chinese interests. It reduced its stake in Cathay Pacific from 53 to 44 percent and its stake in Hong Kong Dragon Airlines (Dragonair) from 43 to 26 percent. CITIC upped its holdings in CX (Cathay's IATA designation) from ten to 25 percent while selling some of its shares in Dragonair to the China National Aviation Corporation (CNAC), which also held about five percent of Cathay Pacific. The Chinese reportedly had threatened to set up their own airline in Hong Kong, pressuring Swire into diluting its holdings (it issued new shares rather than selling the ones it owned). Cathay Pacific eventually acquired three-quarters of another small competitor, Air Hong Kong. Because of its strong position in Asia, Cathay Pacific was being courted by many global airline alliances, but the carrier felt inclined to go it alone, remaining true to its regional focus. The company did set up a new direct route to New York. It also teamed up on the ground, setting up a maintenance company in Xiamen, China, with Singapore Airlines and Japan Airlines. Before the change of government in Hong Kong, CX had begun to build its first proper headquarters (the HK$448 million Cathay Pacific City) and had reworked its corporate image (it had until then painted Union Jacks on its planes). Thanks in part to the sale of Dragonair shares, the company posted a profit of HK$3.8 billion (US$488 million) for 1996, up 28 percent. However, tourism after the handover of Hong Kong on July 1, 1997 was less than expected. The number of Japanese visitors fell 62 percent in the second half of 1997 compared to the same period in 1996-from 1.4 million to just over 500,000. CZ upped its flight frequencies to Europe, Australia, and the United States, following tourist dollars.

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Cathay Pacific Company Overview - Research for CX Account The Asian financial crisis cut business traffic. Further, since Hong Kong tied its currency to the U.S. dollar, Cathay's costs rose in comparison to those of its neighbors. Significant gains in cargo operations were temporarily threatened by computer problems at the new airport's shipping center. Steep landing fees at the new Hong Kong International Airport at Chek Lap Kok added to Cathay's burden. Billed as 'the world's largest construction project,' the new airport did give CZ the impressive setting it lacked to showcase its sterling service. However, it was expensive. Cathay Pacific provided half the total commercial investment-HK$1 billion, including the cost of its new headquarters. The company laid off 760 employees in January 1997. The cost-cutting was not sufficient to avoid a loss of HK$542 million (US$70 million) for 1998, its first in 36 years. (Most of this came from write-offs of older aircraft.) A falling share price prompted Hong Kong to invest in both Cathay and Swire. For its part, Cathay attempted to take over struggling Philippine Airlines Inc. in late 1998. As cockpit crew accounted for 40 percent of labor costs, company executives asked this well-paid bunch for concessions in 1999. The pilots reluctantly agreed, after two weeks of 'too stressed to fly' sick-outs that cost the company an estimated HK$500 million. (Flight attendants had held a three-week strike in 1993 that cost Cathay Pacific HK$200 million.) The Wall Street Journal reported that most of Cathay's pilots were British, and not one of them was an ethnic Chinese from Hong Kong. Cathay Pacific adopted a new corporate identity in 1999. During the year, passenger levels rose on nearly all routes, particularly U.S. ones, and e-commerce helped push up cargo revenues 20 percent to HK$8.4 billion. The company posted a profit of HK$2.2 billion in 1999 on sales of HK$28.7 billion. The optimistic figures prompted the conservative management to begin to expand its fleet again with Airbus planes and two Boeing 747 freighters. After years of courtship, Cathay Pacific finally succumbed to the economic appeal of code sharing and joined the oneworld alliance led by American Airlines and British Airways. The airline saw Hong Kong as more of a hub than a destination by then. The opening of China's airways raised the prospect of CX flying passengers directly to the mainland again, rights the carrier had lost after it acquired a portion of Dragonair in 1990. Principal Subsidiaries: Cathay Pacific Catering Services; Hong Kong Aircraft Engineering Co. (HAECO); Hong Kong Dragon Airlines (18%). Principal Competitors: British Airways plc; China Airlines; Singapore Airlines Ltd.

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