Cathay Pacific Airways auctions a Boeing 747-400 worth of seats in third Cybertraveler Auction; "Bid Now, Fly Later" In Online Ticket Auction.

LOS ANGELES--(BUSINESS WIRE)--April 29, 1996--Leading the aviation industry in targeting the emerging Internet audience, Cathay Pacific Airways has announced the latest in a series of online offerings: an auction of 387 seats (the equivalent of a Boeing 747-400's capacity) for Hong Kong getaways from either New York or Los Angeles.

Industry analysts believe that such online auctions as this will figure highly in the next wave of distribution cost-cutting. Leading Aviation Analyst Julian Maldutis of Salomon Brothers recently cited Cathay Pacific as a leader in this area, as he predicted that online auctions can be expected to revolutionize the pricing strategy among airlines.

As recently quoted in travel industry publications Travel Weekly and Travel Management Daily, Maldutis stated that online auctions could have tripled the earning of U.S. airlines last year -- from net earnings of $2.6 billion to $8.3 billion -- citing a single auction of 50 slow-season Business Class round-trips that increased Cathay Pacific's bottom line by $75,000. Maldutis noted that bids garnered an average of $1,500 per ticket among seats that normally sell for $2,886.

"This program will enable travelers to obtain some of the best values in air travel today. In addition, we are providing a new vehicle to stimulate trial. The Cathay Pacific product lends itself to brand loyalty; we know from experience that once consumers fly with us, they will choose us again and recommend us to others," said Mark Weinberger, the carrier's marketing communications manager, USA & Latin America."

"As the first carrier to introduce online air travel auctions, Cathay Pacific will continue to pioneer such programs to extend value pricing options," he continued. "This auction is especially timely as it helps build awareness of our new service from New York's JFK to Hong Kong which begins July 1."

In the airline's upcoming auction of a B747's worth of seats, Internet users may bid on 313 Economy; 56 Business; and 18 First Class round-trip tickets. Minimum bids for round-trip tickets to Hong Kong begin at only $300 for Economy, while Business and First Class seats start at $600 and $1,200 respectively, available exclusively to registered Cathay Pacific CyberTravelers in increments of $100.

Bidders are invited to involve their travel agent in the process who will be entitled to a commission on the bid amount should their client submit a successful bid. Cathay Pacific views this online marketing as supplementing, not replacing, existing distribution channels such as travel agencies.

Successful bidders may travel anytime in 1997 as follows:

First or Business Class: Mondays, Tuesdays and Wednesdays; no travel April 15-June 15; June 26-July 7; or September 15-November 15, 1997;

Economy Class: Mondays, Tuesdays, Wednesdays and Thursdays; no travel January 1-20, May 15-July 7, or December 15-30, 1997.

Bids will be accepted between May 15 and July 31, 1996. After a bid is submitted, bidders must remit a bid registration fee of $1 within ten days, referencing the bid number assigned at the time the bid is made. Bids not registered within the ten day window will be deleted. Individuals can bid on as many seats as they wish, however, a separate bid is required for each seat.

On August 1, registered bids will be processed, by class, from highest to lowest, in chronological order. The top 18 First Class, top 56 Business Class, and top 313 Economy Class bidders will be sent a ticket purchase form to select preferred 1997 travel dates. This form must be returned with payment by personal check no later than August 31, 1997.

Cathay Pacific will mail tickets to successful bidders by late-September. Once issued, tickets are 100% non-refundable but are changeable upon payment of $100 per ticket . Other conditions and restrictions apply.

For further information or to make a bid, Internet users can visit the Cathay Pacific Airways USA World Wide Web site at http://www.cathay-usa.com.

Celebrating 50 years as Asia's premier carrier, Cathay Pacific Airways offers the only daily, 100% smoke-free B747-400 non-stop service between Los Angeles and Hong Kong. Other North American gateways include Vancouver, Toronto, and starting July 1, 1996, New York, with same-plane, direct service from JFK to Hong Kong.

CONTACT: Patricia Dellegar

Manning Selvage & Lee

[phone]

or

Diana Fung

CATHAY PACIFIC AIRWAYS

[phone], x409