Cathay Pacific chairman James Hughes-Hallett is confident about the airline’s long-term future with Asia’s premier aviation hub, Hong Kong, as its base

The result for 2002, one of the airline's most profitable years, beat analysts' forecasts and represented a 605 per cent increase over the HK$657 million (US$84 million) profit for 2001. Turnover rose by 8.7 per cent to HK$33 billion (US$4 billion).

Cathay Pacific chairman James Hughes-Hallett said: "The main factors in this dramatically improved performance came from increased passenger demand, very strong growth in the air cargo business, and the success of ongoing efforts to improve productivity and keep our overheads under tight control."
 
Records for the airline were broken during the year for passenger load factors, which reached 77.8 per cent, as well as for cargo, with a total of just over 850,000 tonnes of freight carried.

Mr Hughes-Hallett said that looking forward to the current year the prospects were clouded by economic and political turbulence.

"Despite these very significant short-term threats and challenges, we remain confident about our long-term future based in Asia's premier aviation hub, Hong Kong."    

He said Cathay Pacific was pressing ahead with plans to expand its fleet and strengthen the route network built around Hong Kong.

Aviation hub role to further strengthen

Mr Hughes-Hallett said the airline had already announced plans to grow the fleet, with seven aircraft due for delivery comprising Boeing 777, Airbus A330 and Airbus A340-600 jet liners. In conjunction with this fleet expansion, Cathay plans to hire 1,300 extra staff in Hong Kong including cabin crew, pilots and ground staff.

David Turnbull, Cathay's deputy chairman and chief executive, said that expansion of the airline's services would largely come from stepping up flight frequency to existing points, both within the region and on long-haul routes.

Cathay Pacific says that a successful outcome of its application to resume services to the Chinese mainland would strengthen Hong Kong's hub status, although timing remains uncertain.

Mr Hughes-Hallett welcomed proposals by Financial Secretary Antony Leung in his recent Budget speech to liberalise Hong Kong's aviation traffic rights.

 "It's consistent with our own belief that we must get as much traffic as possible through Chek Lap Kok (airport) and ensure that it remains Asia's premier Asian hub."

On Cathay's plans to fly to the Chinese mainland, he added:"There is tremendous support and understanding of the need for connectivity from the outside world through Hong Kong into mainland China, and from China - through Hong Kong - to the outside world.

"That has enormous benefits for Chek Lap Kok and for Hong Kong as a tourist and aviation hub."

Related link:
Cathay Pacific www.cathaypacific.com