Cathay Pacific Announces Interim Results.HONG KONG--(BUSINESS WIRE)--August 6, 1997--Half-yearly earnings of the Cathay Pacific Cathay Pacific Airways Limited (HKSE: 0293 ) is an airline based in Hong Kong, operating scheduled passenger and cargo services to over 104 destinations worldwide. It is the flag carrier of Hong Kong with its main base at the Hong Kong International Airport. [1]. Group totaled HK$1,068 million (US$211 million) for the period ending 30 June 1997. Turnover was HK$15,775 million (US$1,944 million), an increase of 4 percent on 1996. The result is marginally below that of 1996 which was HK$1,106 million before an exceptional item. "The first half of 1997 presented a series of difficult challenges for Cathay Pacific," said Chairman Peter Sutch. "Currency fluctuations, a weak summer travel market and the brief suspension of A330-300 operations created a number of obstacles for the airline." On May 24 of this year, Cathay Pacific took the unprecedented step of suspending operations of its Rolls-Royce Trent Rolls Royce Trent is a family of high bypass turbofan engines manufactured by Rolls-Royce. All are developments of the RB211 with thrust ratings of between 53,000 and 95,000 lbf (236 to 423 kN). 700 powered fleet of A330-300s due to reliability concerns about the engine. In line with Cathay Pacific's corporate commitment to place safety ahead of all other considerations, operations of the aircraft type were suspended. A modification that improved lubrication lubrication, introduction of a substance between the contact surfaces of moving parts to reduce friction and to dissipate heat. A lubricant may be oil, grease, graphite, or any substance—gas, liquid, semisolid, or solid—that permits free action of to the engine's step-aside gear box eliminated the problem and, after just over two weeks, the fleet resumed operations. The engines are now performing very satisfactorily. "This was a tough decision to make but one we felt was necessary to avoid any risk, however small, to the safety of passengers and staff," said Mr. Sutch. Other events which had an impact on revenues in the first half of the year included a much anticipated summer travel peak that failed to materialize. Initial estimates indicated that demand for air travel would be extremely high over the period of Hong Kong's reunification re·u·ni·fy tr.v. re·u·ni·fied, re·u·ni·fy·ing, re·u·ni·fies To cause (a group, party, state, or sect) to become unified again after being divided. with China. "The travel industry was a victim of its own success over the handover n. 1. The act of relinquishing property or authority etc. to another; as, the handover of occupied territory to the original posssessors; the handover of power from the military back to the civilian authorities s>. period," said Mr. Sutch. "Such interest was created that many potential visitors simply assumed Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. would be overflowing and that discouraged them from coming. Pricing of accommodation was also seen as being very high." While passenger load factors were strong up to April, they have declined substantially since May. Overall revenue load factor was up slightly during the first half, averaging 71.2 percent, but downward pressure on yields and the weakness of certain European currencies reduced revenues on many routes. The Japanese market has seen a considerable decline in visitors to Hong Kong. "The second half of the year traditionally brings a stronger demand for air travel, although there is still a hesitation in some markets to visit Hong Kong in the light of misleading media reporting. We are also looking forward to some significant milestones along the road to Chek Lap Kok Chek Lap Kok is an island in the western waters of Hong Kong, China. Chek Lap Kok was one of the two islands (the other being Lam Chau) merged together via land reclamation techniques into to the 12.48 km² platform for the current Hong Kong International Airport. ," said Mr. Sutch. The new Cathay Pacific City is on schedule and budget and plans for the airline's move to the new facility in April of next year are well underway. Cathay Pacific's investment in the headquarters at Chek Lap Kok totals more than HK$4.9 billion and additional investments in ground handling, cargo, catering and related services raises the total to over HK$7.8 billion As 1998 approaches the challenges of the aviation industry will remain, but there is much reason to be optimistic about Cathay Pacific, said Mr. Sutch. "Hong Kong's reunification with China has been handled smoothly, we are operating in a stable political environment and the economy continues to grow. These are conditions that will, in the long run, lead to continuing prosperity for Cathay Pacific." The Cathay Pacific Internet site can be found at http://www.cathaypacific-air.com CONTACT: CF Kwan, Manager Corporate Communication (852) 2747 5214 Charlie Stewart-Cox, GM Group Public Affairs Those public information, command information, and community relations activities directed toward both the external and internal publics with interest in the Department of Defense. Also called PA. See also command information; community relations; public information. , (852) 2840 8092 Jemma Moore, Corporate Communication Manager CLK CLK Clock CLK Clerk CLK CDC2-Like Kinase CLK Corel RAVE (file extension) CLK Chep Lap Kok (Hong Kong airport) CLK Ceska Lekarska Komora (Chech) (852) 2747 5393 or Ruder Finn Ruder Finn is an United States public relations firm founded in 1948 by David Finn and William Ruder. Ruder Finn is a privately held, family-owned company that employs more than 450 people. Patricia Dellegar-Harper/Norbert Beatty 212-593-6400 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion