United

Cathay Pacific to gain direct China access

Friday, 15 September 2006
Cathay Pacific has realised a long held ambition to gain direct access to the rapidly expanding passenger and freight markets in China through a new multi-layered share deal with Swire Pacific, Air China, CNAC and CITIC Pacific.

The agreement will see a change in the shareholder structure of Cathay Pacific, Dragonair and Air China.

Under the agreement, which is subject to shareholder approvals, Dragonair will be wholly owned by Cathay Pacific. Air China will acquire a 17.5 per cent stake in Cathay Pacific and Cathay Pacific will double its shareholding in Air China to 20 per cent.

Swire will remain the principal, long-term shareholder in Cathay Pacific. Dragonair will continue to operate under its own brand, but under Cathay Pacific management.

Cathay Pacific and Air China will continue to develop closer cooperation on many fronts, including establishing an air cargo joint venture in Shanghai. Swire Pacific will remain the principal shareholder in the enlarged Cathay Pacific group. Dragonair will continue to operate under its own brand, but under Cathay Pacific management.

Commentating on the ramifications of the new agreement Cathay Pacific chief executive Philip Chen said: “Cathay Pacific taking full control of Dragonair and strengthening its partnership with Air China will reinforce Hong Kong’s role as the premier aviation hub in the Asia-Pacific region and create one of the world’s strongest airline groupings, here in Hong Kong.”

The confirmation of the Cathay Pacific/Dragonair merger sent a shudder through Hong Kong Air Cargo Terminals (Hactl) management. It fears the merger of the two airlines if combined with cargo self-handling would create a dominant, vertically -integrated air cargo operation (Cathay Pacific has an application before the Airport Authority of Hong Kong for a self-handling air cargo facility at Hong Kong International Airport). Hactl believes that the development has the potential to negatively impact airlines, cargo terminal operators, freight forwarders and suppliers.

Meanwhile, Cathay Pacific will add Stockholm and Toronto to its freighter network. Stockholm will commence 17 September and operate twice a week as an extension of Cathay Pacific’s existing flight to Munich. Toronto, commencing 20 September, will be a three-times-weekly extension of the airline’s freighter service to New York. Last month the carrier launched a new service to Chennai, India, and plans to soon increase the frequency of services to Dallas and Atlanta.

Hard on the heels of the Dragonair/Cathay Pacific merger Cathay has confirmed an order for six B747-400ERF Extended Range Freighters.

The six new aircraft are scheduled to arrive between May 2008 and April 2009. Cathay Pacific currently operates 97 aircraft, 14 of which are freighters, including one 747-400BCF, Boeing Converted Freighters, six 747-400 and seven 747-200 freighters. In 1997, there were just six freighters in the airline. This latest buy, together with an outstanding order of five 747-400BCFs, will further expand the carrier’s freighter fleet.

Cathay Pacific chief executive Philip Chen said: “Cargo is a major contributor to our continued growth, and we are committed to expanding our freighter fleet to ensure it plays a key role in the future of both Cathay Pacific and Hong Kong as a leading cargo hub.”

The 747-400ERF has a maximum payload of 248,600 pounds (112,760 kg) and can carry 22,000 pounds (9980 kg) more than other 747-400 freighters on long-range flights at maximum takeoff weight. It has a maximum range of 9,200 km, about 525 km farther than other 747-400 freighters, and has a strengthened fuselage, landing gear and parts of its wing, along with new, larger tyres. The airline took delivery of the world’s first 747-400BCF in December last year. A second is due next month and a third in September this year. Three more will enter service in 2007. The airline has retained its options on a further six 747-400BCFs which are now scheduled for delivery from the end of 2008 to 2010. Last month the carrier added its 28th online freighter destination to its network with the launch of a new twice-weekly service to Chennai, India. More new freighter destinations services to Stockholm and Toronto are due to be launched later this year.

HACTL
Cathay Cargo
United

Cathay Pacific to gain direct China access

Friday, 15 September 2006
Cathay Pacific has realised a long held ambition to gain direct access to the rapidly expanding passenger and freight markets in China through a new multi-layered share deal with Swire Pacific, Air China, CNAC and CITIC Pacific.

The agreement will see a change in the shareholder structure of Cathay Pacific, Dragonair and Air China.

Under the agreement, which is subject to shareholder approvals, Dragonair will be wholly owned by Cathay Pacific. Air China will acquire a 17.5 per cent stake in Cathay Pacific and Cathay Pacific will double its shareholding in Air China to 20 per cent.

Swire will remain the principal, long-term shareholder in Cathay Pacific. Dragonair will continue to operate under its own brand, but under Cathay Pacific management.

Cathay Pacific and Air China will continue to develop closer cooperation on many fronts, including establishing an air cargo joint venture in Shanghai. Swire Pacific will remain the principal shareholder in the enlarged Cathay Pacific group. Dragonair will continue to operate under its own brand, but under Cathay Pacific management.

Commentating on the ramifications of the new agreement Cathay Pacific chief executive Philip Chen said: “Cathay Pacific taking full control of Dragonair and strengthening its partnership with Air China will reinforce Hong Kong’s role as the premier aviation hub in the Asia-Pacific region and create one of the world’s strongest airline groupings, here in Hong Kong.”

The confirmation of the Cathay Pacific/Dragonair merger sent a shudder through Hong Kong Air Cargo Terminals (Hactl) management. It fears the merger of the two airlines if combined with cargo self-handling would create a dominant, vertically -integrated air cargo operation (Cathay Pacific has an application before the Airport Authority of Hong Kong for a self-handling air cargo facility at Hong Kong International Airport). Hactl believes that the development has the potential to negatively impact airlines, cargo terminal operators, freight forwarders and suppliers.

Meanwhile, Cathay Pacific will add Stockholm and Toronto to its freighter network. Stockholm will commence 17 September and operate twice a week as an extension of Cathay Pacific’s existing flight to Munich. Toronto, commencing 20 September, will be a three-times-weekly extension of the airline’s freighter service to New York. Last month the carrier launched a new service to Chennai, India, and plans to soon increase the frequency of services to Dallas and Atlanta.

Hard on the heels of the Dragonair/Cathay Pacific merger Cathay has confirmed an order for six B747-400ERF Extended Range Freighters.

The six new aircraft are scheduled to arrive between May 2008 and April 2009. Cathay Pacific currently operates 97 aircraft, 14 of which are freighters, including one 747-400BCF, Boeing Converted Freighters, six 747-400 and seven 747-200 freighters. In 1997, there were just six freighters in the airline. This latest buy, together with an outstanding order of five 747-400BCFs, will further expand the carrier’s freighter fleet.

Cathay Pacific chief executive Philip Chen said: “Cargo is a major contributor to our continued growth, and we are committed to expanding our freighter fleet to ensure it plays a key role in the future of both Cathay Pacific and Hong Kong as a leading cargo hub.”

The 747-400ERF has a maximum payload of 248,600 pounds (112,760 kg) and can carry 22,000 pounds (9980 kg) more than other 747-400 freighters on long-range flights at maximum takeoff weight. It has a maximum range of 9,200 km, about 525 km farther than other 747-400 freighters, and has a strengthened fuselage, landing gear and parts of its wing, along with new, larger tyres. The airline took delivery of the world’s first 747-400BCF in December last year. A second is due next month and a third in September this year. Three more will enter service in 2007. The airline has retained its options on a further six 747-400BCFs which are now scheduled for delivery from the end of 2008 to 2010. Last month the carrier added its 28th online freighter destination to its network with the launch of a new twice-weekly service to Chennai, India. More new freighter destinations services to Stockholm and Toronto are due to be launched later this year.

HACTL
Cathay Cargo
HACTL
Cathay Cargo