Cathay Pacific

The early years

Cathay Pacific was founded in Hong Kong on September 24, 1946 by American Roy Farrell and Australian Sydney de Kantsov. They were both former Air Force pilots who served in the Himalayas during World War II . The airline was originally based in Shanghai , later partners moved to Hong Kong, where Cathay Pacific officially began operations ^[5] . The name “Cathay” is one of the medieval names of China, derived from “Khitan”, and the word “Pacific” in the name is due to the fact that Farrell set flights across the Pacific Ocean for one of the company's goals ^[6] . The Chinese name of the company coincides with the idiom of "Great and Peaceful State."

According to corporate legend, the idea of ​​the airline came to Farrell during a conversation in a hotel bar in Manila with foreign correspondents. The first flight of the Cathay Pacific, Douglas DC-3 aircraft, named Betsy , on board of which were both partners, made on the route Hong Kong-Manila-Shanghai. At the start of operations, the airline's main destinations were Hong Kong , Sydney , Manila , Singapore , Shanghai and Canton , but regular flights were only operated between Bangkok , Manila and Singapore.

Since the law did not allow non-British to own controlling stakes in companies registered in Hong Kong, Farrell and de Kantsov hired Butterfield & Swire, a leading Hong Kong trading company, as a partner. For Swire, Cathay Pacific was supposed to compete with Hong Kong Airways, owned by Jardine Matheson (but it was taken over by British Airways the same year). The new airline began operations on July 1, 1948 and was registered as Cathay Pacific (1948) Ltd on October 18, 1948 ^[7] . Farrell left the company in 1948, and de Kantsov in 1951, so for a while the share of Swire reached 100%. In the early 1950s, the airline incurred losses, and in 1953 a 30 percent stake in it was sold to the Peninsular and Oriental Steam Navigation Company . In 1958, Kai Tak Hong Kong Airport opened a new runway with a length of 2545 m, which allowed the start of operation of larger Douglas DC-6 aircraft. Hong Kong Airways suffered losses during the 1950s and was sold to Cathay Pacific in 1959 ^[5] .

In 1959, the company began flying from Hong Kong to Sydney , but immediately met fierce competition from the Australian airline Qantas , and in 1961 abandoned this route and tempered its transcontinental ambitions, focusing on the Asian market. In 1964, the first jet aircraft ( Convair 880 ) was purchased and international flights to Japan began . In the 1970s, Cathay Pacific introduced a computer reservation system and flight simulators. In 1974, the Boeing 707 fleet was replenished and flights to Sydney were resumed; in 1976, flights to Bahrain and Dubai began . In 1979, Cathay Pacific acquired the first Boeing 747 and requested permission to fly to London (licensed in June 1980). In 1981, 3 million passengers and 97 thousand tons of cargo were transported to 23 directions, including a non-stop flight from Hong Kong to London in 14 hours. In 1983, a flight was opened to Vancouver , where one of the largest Chinese diasporas is located ^[5] .

In 1986, Cathay Pacific became a public company; due to the approaching date of the transfer of Hong Kong to the control of China, Swire began to reduce its stake in the airline, a significant shareholder was the Chinese investment company CITIC (12.5%). In January 1990, Cathay Pacific and its parent company Swire Pacific acquired a large stake in Dragonair and a 60% stake in Air Hong Kong . In the early 1990s, Cathay Pacific made a net profit of about HK $ 3 billion per year (while many US and European airlines incurred losses), the company contributed about HK $ 1 billion to the construction of the new Cheklapkok international airport, which also included the company's new headquarters The total cost of the project amounted to HK $ 13 billion. A fleet modernization program worth $ 9 billion was launched, as a result of which Cathay Pacific received one of the youngest fleets in the world. In 1996, CITIC increased its stake to 25%, and the Swire Group reduced its share to 44% (due to the issue of new shares) ^[5] .

In 1997, Great Britain transferred control of Hong Kong to the PRC. Most Cathay Pacific aircraft were registered in Hong Kong and had a registration number with the VR index. According to the terms of the agreement with the British-Chinese Joint Liaison Group (JLG), in December 1997 the registration was changed, the prefix “B” appeared, which was used by the PRC and Taiwan. Also, the British flag on the tails of the aircraft was replaced by the company logo. In 1998, the company showed losses for the first time since the 1950s, which was caused by the Asian financial crisis , the cancellation of old planes and the cost of building the Cathay City headquarters, opened in 1999. In September 1998, Cathay Pacific became a founding member of the Oneworld alliance , together with American Airlines and British Airways ^[5] .

Case 49

On July 9, 2001, Cathay Pacific laid off 49 of 1,500 pilots; the so-called “case of 49” began with this event (however, the total number of laid-offs amounted to 62 people). Half of those laid off were first pilots, or 5% of the total pilot group. Of the 21 leaders of the Pilot Union (HKAOA), 9 were dismissed, including four out of seven negotiators. Subsequently, Cathay offered 49 pilots who were dismissed in 2001 the opportunity to return to work in the cargo unit, but previously they had to undergo interviews and psychometric testing. 19 people accepted the offer, 12 returned to work ^[8] .

Takeover and reorganization of Dragonair

On June 9, 2006, Cathay Pacific acquired a full stake in Dragonair , but the airline continued to operate under its old brand name. Air China and its subsidiary, CNAC Limited, acquired a 17.5% stake in Cathay Pacific, and Cathay Pacific doubled its stake in Air China to 20%. CITIC reduced its stake to 17.5%, while Swire reduced its stake to 40%.

Dragonair originally planned the development of an international airline network. She already operated flights to Bangkok and Tokyo, the fleet in 2009 was to increase to 9,747-400BCF, new flights were to open in New York, Los Angeles, Chicago, San Francisco and Columbus ^[9] . In addition, three 3,330-300s were purchased for flights to Seoul and Sydney ^[10] .

However, by 2009 these plans were not implemented. The process of liquidation of the airline’s cargo division began, and flights to Bangkok and Tokyo stopped. The direct consequence of the absorption of Cathay was the reduction in operations and the staff of Dragonair ^[11] . In 2006, Dragonair employed 3,894 people; by November 2008, the number of employees had dropped to 2,598 ^[12] .

In 2019, the Hong Kong airline HK Express was bought for HK $ 4.93 billion ^[13] .

• John Robert Slosar is the Executive Chairman of the Board of Directors of Cathay Pacific Airways from 2014, from 2007 to 2011 was the Chief Operating Officer, from 2011 to 2014 the Chief Executive Officer. He has been with the Swire Group since 1980, and is also chairman of the group’s other subsidiaries, John Swire & Sons (HK), Swire Pacific, Swire Properties, and the Hong Kong Aircraft Engineering Company, and is on the boards of the Hongkong and Shanghai Banking Corporation , Air China and PureCircle .
• Rupert Bruce Grantham Trower Hogg - Chief Executive Officer since 2017, in the Swire group since 1986, also Chairman of the Board of Directors of Dragonair ^[1] .

The main region of activity is Hong Kong and mainland China, accounting for about half of the airline's revenue (in 2018, HK $ 57 billion from HK $ 111 billion), followed by America (HK $ 14.2 billion), Japan, Korea and Taiwan (HK $ 10.9 billion), Europe (HK $ 10.6 billion), Southeast Asia (HK $ 8.1 billion), Southwestern Pacific (HK $ 5.5 billion), South Asia, Middle East and Africa (totaling HK $ 4.9 billion). Two-thirds of revenue comes from passenger transportation, a quarter from freight, the rest is provided by other services ^[2] .

Passenger Fleet

In July 2018, Cathay Pacific operated the following aircraft ^[15] :

Cargo Fleet

As of December 2014, the average age of Cathay Pacific aircraft is 8.7 years ^[21] .

Coloring

All Cathay Pacific airplanes have a logo with the text in small letters “Asia's World City Hong Kong”. All aircraft also have Oneworld and Swire Group logos.

Previously Used

After its creation in 1946, Cathay Pacific was the operator of a large number of aircraft types. The first two Cathay Pacific aircraft were the Douglas DC-3, which was called Betsy and Nicky . Betsy (VR-HDB), the first Cathay Pacific aircraft, is on display at the Hong Kong Science Museum. Nicky (VR-HDA) was lost, but a similar DC-3 was acquired by Cathay Pacific, refurbished and repainted in the colors of the company. This aircraft, which received the registration number “Niki” VR-HDA, is on public display near the headquarters of the company.

At various times, Cathay Pacific exploited:

• Douglas dc-3
• Avro anson
• Consolidated PBY Catalina
• Douglas dc-4
• Douglas DC-6
• Lockheed L-188 Electra
• Bristol Britannia (Rented from BOAC for a few months while Electra renovated)
• Convair 880
• Boeing 707-320
• Airbus A340-600 (sold by Hainan Airlines)
• Boeing 747-200B ^[22]
• Boeing 747-300 ^[22]
• Airbus A340-200 ^[22] (leased from Philippine Airlines 3 years before delivery of the first A340-300)
• Lockheed L-1011-100 TriStar (one Lockheed-VR-HOI was acquired from Eastern Air Lines (N318EA) after the bankruptcy of the latter)

In the late 1980s and early 1990s, Cathay Pacific was the largest Lockheed TriStar operator outside the United States .

Cathay Pacific and Dragonair passengers are offered the service of two bonus programs: “The Marco Polo Club” (“The Club”) - frequent flyer reward program and “Asia Miles” - travel reward reward program ^{[23] [24]} The Club members automatically become members of the Asia Miles program ^[25] .

Marco Polo Club

The Marco Polo Club program has four membership levels - Green (Beginner), Silver, Gold and Diamond. To enter the program, a passenger must pay 35 euros or 50 US dollars . The conditions for scoring, upgrading to higher levels and other privileges are the same for all Cathay Pacific, Dragonair passengers and members of the Oneworld global aviation alliance. Owners of the highest levels of the bonus program have maximum privileges, including a guaranteed seat in the economy class for any Cathay airline flight, excess baggage, priority on the list, waiting, extra check-in for the flight and access to the comfortable lounges of the Cathay group companies and its partners. Membership in the Marko Polo Club is terminated automatically if no actions have been taken within 12 months (flights, payment for purchases with cards), or if the passenger has not scored the minimum number of points specified in the terms of membership in the bonus program during this period ^{[25] [26]} .

"Green"

"Green" ("Green") - the initial level of the bonus program "Marco Polo Club". Owners of this level have the right to free booking of tickets within 24 hours, check-in for flights at specially designated Marco Polo racks, increased baggage allowance and priority boarding. To confirm the level, the passenger needs to collect 4 “club sectors” within 12 months ^[27] .

Silver

The transition to the level of "Silver" (Silver) occurs when you accumulate 30 thousand "Club Miles" or 20 "club sectors" within one year. In addition to the privileges of the “Green” level, owners of this level have the right to previously reserve a seat in the passenger compartment, priority on the waiting list, check-in at business-class desks, excess 10 kilograms of baggage, priority for baggage claim and access to business lounges during flights on Cathay Pacific and Dragonair flights. The “Silver” level of the program is fully consistent with the “Ruby” status in the general bonus program of the Oneworld alliance , the privileges of which extend to all permanent and affiliated members of the alliance ^{[27] [28]} .

Gold

With an accumulation of 60 thousand miles or 40 “sectors” during the year, a program participant switches to the “Gold” level. In addition to the privileges of the previous level, passengers receive a guaranteed right to an economy class seat on any Cathay Pacific and Dragonair flight with a seat reservation 72 hours prior to departure, 15 kilograms of baggage in excess of the standard or one piece of baggage of any weight in excess of the standard, access to business lounges for airports with one more passenger of Cathay group airlines and for lounges in the comfortable lounges in the arrivals area of ​​flights (for passengers traveling with Cathay flights and code-share flights by plane ah group partners). The Gold level is fully consistent with the Sapphire status in the Oneworld alliance bonus program, the privileges of which extend to all permanent and affiliated members of the alliance ^[27] .

Diamond

If 120 thousand miles or 80 “sectors” are accumulated during the year, the participant is upgraded to the “Diamond” level. In addition to gold-level privileges, passengers receive an exclusive priority on the waiting list, guaranteed right to a seat in economy and business class lounges on any Cathay airline flight with reservations 24 hours before departure, check-in at First-class desks, 20 kg of baggage baggage over standard or one piece of baggage of any mass in excess of the standard, the priority of passengers of the First class for the processing and delivery of baggage, access to the first-class lounges with two passages s traveling airlines Cathay Pacific flights and on Dragonair, access to the rooms superior business class with two passengers traveling on flights of any airline. The Diamond level is fully consistent with the Emerald status in the Oneworld alliance bonus program, the privileges of which extend to all permanent and affiliated members of the alliance ^[27] .

Diamond Plus

The highest level of the Diamond Plus (Diamond +) bonus program is offered every year to one percent of Diamond status owners by Cathay top management as “a sign of recognition of their exceptionalism, commitment and contribution to the work of Cathay Pacific and Dragonair Airlines”. In addition to the privileges of the previous level, the owner of the Diamond Plus status has the right to grant Diamond privileges to his companion (companion) and has the right to access Cathay First Class lounges with him regardless of which airline they are currently traveling on. With the exception of these two privileges, the “Diamond Plus” level is fully consistent with the “Emerald” status in the general bonus program of the Oneworld alliance , the privileges of which extend to all permanent and affiliated members of the alliance ^[29] .

Asia Miles

The Asia Miles Bonus Program covers more than five hundred partners in nine business sectors: air travel, hotels, finance and insurance, restaurants, retail, travel, car rental, telecommunications and expert services. Program members can also earn miles by making electronic purchases on the iShop network with a wide range of services and brands - from books and electronics to clothing and other accessories. Members can spend miles on airline tickets, travel, concert tickets, food, and many other goods and services. Bonus points are valid for three years from the date of purchase. Membership in the program is free, the participant can article any person over two years of age ^{[30] [31]} .

In 2001, the Asia Miles ™ product received the “Best Airline Bonus Program” award from the Asia-Pacific Business Travel Association ^[32] .

The Cathay Pacific route network has grown rapidly due to code sharing agreements with Oneworld alliance companies and alliance hubs at Los Angeles International Airport (American Airlines) and Heathrow (British Airways).

Cathay Pacific also entered into similar agreements with the TGV railways of France.

Cathay Pacific code sharing agreements as of June 2007:

• Air China ( Star Alliance )
• American Airlines ( Oneworld )
• British Airways (Oneworld)
• Comair (Oneworld)
• Dragonair ( Oneworld )
• Iberia Airlines (Oneworld)
• Japan Airlines (Oneworld)
• Malaysia Airlines (Oneworld)
• Philippine airlines
• Finnair (Oneworld)
• Qantas (Oneworld)
• Vietnam Airlines
• S7 Airlines (Oneworld)

• February 24, 1949. The crew of the Douglas C-47A-90-DL (registration VR-HDG), following a regular flight from Hong Kong to Manila, in conditions of poor visibility, tried to stop the approach and go to the second round. The liner crashed into a hill in the vicinity of the Bramer Reservoir, killing all 23 people on board ^[33]
• On June 16, 1948, the Miss Macau seaplane , flying from Macau to Hong Kong, was captured by four men who killed the pilot after takeoff. The plane crashed in the Pearl River Delta near the city of Zhuhai . Twenty-six people died, only one person survived - the leader of the terrorists. This event was the first capture of a commercial aircraft in the world.
• July 23, 1954 C-54 Skymaster reg. The VR-HEU number flying from Bangkok to Hong Kong was shot down by the Chinese Air Force over the South China Sea near Hainan Island . Ten people died, eight survived. Cathay Pacific apologized and paid compensation.
• On November 5, 1967, in Hong Kong, the Convair CV-880-22M-3 flew over the lane of Kai So Airport . Three people died, the plane was decommissioned.
• On June 15, 1972 , a bomb exploded in a suitcase aboard a Convair 880 , flying 700Z from Bangkok to Hong Kong. The plane crashed near Pleiku , Vietnam . Killed all 81 people on board.
• August 13, 2010. Airbus A330-300 aircraft (registration B-HLL), regular flight 780 from the international airport named after Juanda ( Surabaya ) to Hong Kong . During the entire flight, the crew struggled with the problems encountered in the engines of the liner. When landing at the destination airport, the pilots were not able to fully control the engine thrust, as a result of which the airliner made a landing at high speed and received significant damage. The investigation established the cause of the incident, which consisted in refueling the aircraft with poor-quality fuel at the Surabai airport ^[34] .

The main subsidiaries and partnerships at the end of 2018 ^[2] :

• AHK Air Hong Kong Limited (Hong Kong, air freight, 100%)
• Airline Property Limited (Hong Kong, real estate investment, 100%)
• Airline Stores Property Limited (Hong Kong, real estate investment, 100%)
• Airline Training Property Limited (Hong Kong, real estate investment, 100%)
• Asia Miles Limited (Hong Kong, bonus program, 100%)
• Cathay Holidays Limited (Hong Kong, tour operator, 100%)
• Cathay Pacific Aero Limited (Hong Kong, financial services, 100%)
• Cathay Pacific Aircraft Lease Finance Limited (Hong Kong, airline leasing, 100%)
• Cathay Pacific Aircraft Services Limited (Isle of Man, purchase of air transport, 100%)
• Cathay Pacific Catering Services (HK) Limited (Hong Kong, Onboard Service, 100%)
• Cathay Pacific MTN Financing Limited (Cayman Islands, financial services, 100%)
• Cathay Pacific Services Limited (Hong Kong, freight terminal, 100%)
• Deli Fresh Limited (Hong Kong, cooking and serving on board, 100%)
• Global Logistics System (HK) Company Limited (Hong Kong, freight network, 100%)
• Guangzhou Guo Tai Information Processing Company Limited (China, information processing, 100%)
• Hong Kong Airport Services Limited (Hong Kong, ramps, 100%)
• Hong Kong Aviation and Airport Services Limited (Hong Kong, real estate investment, 100%)
• Hong Kong Dragon Airlines Limited (Hong Kong airline, 100%)
• Troon Limited (Bermuda, financial services, 100%)
• Vogue Laundry Service Limited (Hong Kong, Laundry, 100%)
• Air China Cargo Co., Ltd. (China, air freight, 25%)
• Air China Limited (China, airline, 18%)
• Cebu Pacific Catering Services Inc. (Philippines, service on board, 40%)
• China Pacific Catering Services Limited (Taiwan, Onboard Service, 49%)
• Ground Support Engineering Limited (Hong Kong, ground services, 50%)
• HAECO ITM Limited (Hong Kong, hardware maintenance, 30%)
• LSG Lufthansa Service (Hong Kong, Onboard Service, 32%)
• Shanghai International Airport Services Co., Limited (PRC, ground services, 25%)
• Vehicle Engineering Services Limited (Hong Kong, vehicle repair, 50%)

• List of China's largest companies according to Forbes (2019)

• Official site Cathay Pacific
• Cathay Pacific Fleet
• Aircraft Photos
• Aircraft Configuration Data
• Swire group
• Cathay Pacific's first flight - photo gallery on ATO.ru