Cathay Pacific Essay Example
Cathay Pacific Essay Example

Cathay Pacific Essay Example

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  • Pages: 12 (3281 words)
  • Published: August 24, 2017
  • Type: Case Study
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Company Profile

Cathay Pacific is an international air hose registered and based in Hong Kong. offering scheduled rider and lading services to 172 finishs in 39 states and districts. The Company was founded in Hong Kong in 1946 and remains profoundly committed to its place base. doing significant investings to develop Hong Kong as one of the world’s taking international air power Centres. In add-on to its fleet of 138 aircraft. these investings include providing and ground-handling companies and the corporate central office at Hong Kong International Airport. Cathay Pacific continues to put to a great extent in its place metropolis and at 31st December 2012 had another 92 new aircraft due for bringing up to 2020.

The air hose late completed building of its ain lading terminus in Hong Kong. which commenced a staged passage of operations in February 2


013 Cathay Pacific and its subordinates employ some 29. 900 people worldwide ( more than 22. 800 of them in Hong Kong ) . Cathay Pacific is listed on The Stock Exchange of Hong Kong Limited. as are its significant stockholders Swire Pacific Limited ( “Swire Pacific” ) and Air China. Cathay Pacific is a founding member of the oneworld planetary confederation. whose combined web serves more than 800 finishs worldwide.

Competitive advantages

Competitive advantage is the ability of an organisation to surpass others because they produce coveted goods or services more expeditiously and efficaciously than its rivals. When a house sustains net incomes that exceed the norm for its industry. the house is said to possess a competitory advantage over its challengers. The end of much of concern scheme is to accomplish a sustainable competitory advantage. A competitory

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advantage exists when the house is able to present the same benefits as rivals but at a lower cost ( cost advantage ) . or present benefits that exceed those of viing merchandises ( distinction advantage ) . Therefore. a competitory advantage enables the house to make superior value for its clients and superior net incomes for itself. Features of competitory advantages


To better the merchandise quality. Cathay Pacific attempts to run into and accomplish demands of riders. In an progressively competitory environment. it is important to keep and develop rider trueness by supplying high quality merchandises and services. This remains a cardinal focal point of the Cathay Pacific Airways. Therefore. Cathay Pacific has introduced a new Premium Economy Class merchandise. a new long-haul Economy Class place and a new Regional Business Class place. The airline’s long-haul Business Class was named World’s Best Business Class in 2012 at the World Airline Awards run by Skytrax. “Cathay Pacific’s strengths is to supply a comprehensive degree of service. we are committed to the aims to be achieved. ” expressed the company’s strengths said by Cathay Pacific Deputy Chairman and Chief Executive David Turnbull.

Not merely service provided by Cathay Pacific inside the aircraft. but besides all land service demand to be monitored. such as check-in. pick up baggage and even the riders leave from the airdrome to the place manner. All these facets are Cathay Pacific service scope and strive to supply satisfactory service to riders. The Top-class direction squad and loyal support can workforce a good combination. Thereby. the airline’s existent competitory advantage in these “most challenging concern conditions for our industry in more than a generation” was

its supportive work force. citing the response of the airline’s about 20. 000 staff to a particular leave strategy designed to salvage the company hard currency and to forestall the demand for staff layoffs.

On the other manus. the nucleus strengths of Cathay Pacific Airways are a brilliant squad. a strong international web. exceeding criterions of client service. a strong relationship with China and our place in Hong Kong. These will assist to guarantee the success of the Cathay Pacific Group in the long term.


From the Hong Kong people’s point of position. Cathay Pacific Airways is a Hong Kong-based international air hose registered in Hong Kong. offering scheduled rider and lading services to over 90 finishs around the universe. So many theodolite riders can take advantage of this immense bend flight transmittal of Hong Kong and Cathay Pacific’s flight web. Therefore. they can continue to another metropolis through Hong Kong. As the Hong Kong airdrome is a hub airdrome. Hong Kong is a theodolite point for the proportion of long-run rider. Therefore. Cathay Pacific abandoned the low-price scheme. but stick to the original high-end line. determined to go the most admired air hoses. “Shaping a ace brand” of course go a centre of all of Cathay Pacific’s work. Refering the super trade name image. it is shaped by 3 elements which are choice merchandises. full service and successful publicity.


Furthermore. the “Cathay Pacific brand” communicating activities are really systematic and high-profile promotional activities abound in the universe. For illustration. articulation to transport out the activities of the “Best Chinese Food” with so well-known eating houses in Hong Kong. joint other concern endeavors for keeping “Asia Miles Airlines’

frequent circular program’’ . “Cathay Pacific Hong Kong International Races” with the Hong Kong Jockey Club. and so on. Promotional activities with a clear subject promoted in different period and channel. such as Television advertisement. print advertisement. Internet advertisement. out-of-door advertisement. etc.


Since the web and the paths that the airways’ ain merchandises. Cathay Pacific invariably purchase new theoretical accounts. update. spread out their fleet. and to fall in one of the world’s five largest air hose confederation oneworld confederation to beef up the planetary web. Presently. more than 80 piloted aircraft Cathay Pacific fleet is one of the world’s youngest and most modern rider fleet. with an mean age of merely seven old ages. Furthermore. Cathay Pacific received 19 new aircraft in 2012 for protracting to upgrade the competency of the company. As at 31 December 2012. Cathay Pacific had 92 aircraft on order for bringing up to 2020. The order was placed for 6 Airbus A350-900 aircraft in January 2012.

In August. Cathay Pacific ordered 10 Airbus A350-1000 aircraft and converted an bing order for 16 Airbus A350-900 aircraft into an order for 16 Airbus A350-1000 aircraft. In March 2013. Cathay Pacific entered ‘into an understanding with The Boeing Company under which it agreed to purchase 3 Boeing 747-8F bottom aircraft. Under the understandings. Cathay Pacific besides acquired options to buy 5 Boeing 777-200F bottoms and The Boeing Company agreed to buy 4 Boeing 747-400BCF converted bottoms. which were taken out of service in 2012 and early 2013.

SWOT analysis

Cathay Pacific is committed to beef uping Hong Kong’s place as a planetary air power hub and gateway to the Chinese Mainland. and leveraging its web to

heighten concern. tourer and lading traffic flows. Cathay Pacific is dedicated to technological excellence for its merchandises and services. It was one of the first air hoses to supply inflight electronic mail. It besides offers on-line ticketing and check-in. a downloadable timetable. and the notiFLY flight paging service. which delivers real-time flight information updates to clients via electronic mail or on their nomadic phones. The iPermit strategy enables Taiwan occupants to use for Hong Kong visas via the cyberspace and roll up them upon reaching at Hong Kong International Airport.

Its inflight amusement system offers more than 20 picture channels and an audio/video on demand system for First and Business category riders. It was voted “World’s Leading Use of Inflight Technology” in the World Travel Awards 2003 canvass of 80. 000 travel industry professionals. Cathay Pacific is a member of the oneworld planetary confederation. fall ining Aer Lingus. American Airlines. British Airways. Finnair. Iberia. LanChile and Qantas. Swiss Air Lines International is the latest full confederation member. The oneworld carriers’ combined web serves more than 570 finishs. Cathay Pacific is besides a member of the popular travel wages plan. Asia Miles.


There is no such company without failings. Cathay Pacific Airways unpunctuality in their flights sometimes makes their client hard to choose to wing with the air hose. In add-on. the air hostesses are non really pleasant and nice therefore doing people leave out the air hose as an option when going place and abroad. Cathay Pacific Airways besides finds it difficult to shift itself in the aftermath of fiscal crisis. The company besides is unable to cover with legion dirts compelled people to lose assurance in



Cathay Pacific Airways is known to be Hong Kong’s taking air hoses gives them the chance to get more clients and bring forth more grosss. Peoples would hold more assurance on air hoses that are recognized by the award winning organic structures because it would do the people have more assurance on winging with the said air hoses. In add-on. with Cathay Pacific Airways’ online booking. they give more convenience to their client giving them the opportunity to pull more clients particularly with people that have no clip to travel to air hoses subdivisions for engagements. The air hose has besides an chance of engineering promotion for easier dealing and operations and for more convenience for clients and employees. Furthermore. with its acknowledgment. the air hose attracts more chances of enlargement.


Menaces are ever with every organisation. Airline industry is the most competitory industry. Cathay Pacific Airways rivals particularly the authorities owned air hoses are the menace of the company. Government owned air hoses have less likely to shut down. It is besides supported with the national authorities with their resources giving them more chances over a publically owned air hose like the Cathay Pacific Airways. In add-on. political branching besides affects the operation of air hoses. Furthermore. economic recession besides is a menace to air hoses. With economic recession. people are likely to salvage and cut down their travel disbursals to get by up with the recession. People outgo are the most likely affected with the recession and therefore besides affects air hoses since people don non largely travel in times of economic recession.

In add-on. menaces in terrorist onslaught. the lifting fuel and labor costs

besides have caused the company to see low degree of net incomes for people are hesitating to go due to these menaces.

Corporate scheme

Cathay Pacific is utilizing the growing scheme in the market. Organization wants to spread out the figure of markets served or merchandises. They develop the concern through their current concern and new concern In their growing schemes. there are concentration. Vertical integrating. horizontal integrating. related variegation and stableness scheme. Main merchandise of Cathay Pacific is supplying the transit. In the add-on. they provide the amusement. nutrient and drink to the rider in the flight. Presents. they will alter the bill of fare of the flight and add the new amusement to run into the rider needs. For illustration. they announce the latest publicity to heighten award-winning in-flight vino choice. The debut of six universe category vinos is from saint-E’milion Bordeaux. France to the first category vino list. It can pull the rider to utilize their merchandise on 2nd of May. In each twelvemonth. the company should be addition or better the installation to acquire the rider satisfaction.

In the integrating. there is perpendicular and horizontal. Cathay Pacific is the powerful organisation. In their flight merchandise. they need to supply the nutrient to the rider. Some of the air hose. they should be happen the supply to supply the nutrient but Cathay Pacific have the Cathay Pacific Catering Services ( Hong Kong ) limited company to supply the nutrient. It can command the nutrient quality and the supporting will be fixed. On the horizontal integrating. they take over the Dragonair on 28 September 2006 Dragonair was the rival of the Cathay Pacific before the coup

d'etat. Within the Cathay Pacific coup d'etat the Dragonair. The two aircraft were restructured. and exchange waypoints. Dragonair should re-position as a regional air hose. chiefly to China and Southeast Asia markets. Furthermore. Dragonair have another chief map of the company. It is supplying the intercontinental paths to Cathay Pacific to substitute web. For the variegation. there is the related and unrelated. Cathay Pacific created the Asia Miles rank.

The member can through nine type of industry to acquire the Miles include the air hose. hotel. finance and insurance. repasts and feasts. retail. travel and leisure. automotive and transit. telecommunications and professional services to acquire Miles. If the members buy the merchandise in the spouse company. it can acquire the Miles. The Miles can interchange the travel. electronic merchandises. repasts. concert tickets etc. The spouse bureaus were the China Airline. Australia Airline. Japan Airline etc. The Asia Miles can pull the invitee to pick the service of the company. It is the trueness plan to pull the invitee to be the trueness client.

The unrelated variegation of them is publicity of the company. they should fall in the Hong Kong Tourism Board will be held in the Chinese New Year Parade on every Chinese new twelvemonth twenty-four hours one. Besides. Cathay Pacific sponsored the Television programmed about the travel and air hose industry such as the “Choi Lam eat on the world” Television travel programmed made from TVB. Besides in stableness scheme. Cathay Pacific reduced the frequence of flights on the Los Angeles. New York and Toronto paths. Base on stable demand on rider. Cathay Pacific still maintain three flights a hebdomad on the Los Angeles. New

York and Toronto paths at the same clip. to do a sum of 20 flights per hebdomad.

Reason behind the corporate scheme

Cathay Pacific is based on client keeping for the company. service is perfectly critical. The company has been voted Airline of the Year in the Skytrax rider canvass twice in the past three old ages. But the company knows that it can non last as a premium air hose without continually reinventing itself to keep its position in such a extremely competitory industry as the air hose industry. Performance of its forces is the most critical in the organisation.

Cathay Pacific is chiefly concentrating on their primary line of concern and increasing the figure of merchandises offered or markets portion. For blink of an eye. buying new theoretical account aircrafts and adding different paths to different parts of the universe. Besides it uses the new engineering to acquire aid in the operation.

Besides. Cathay Pacific has their ain catering services for fixing the nutrients consume in the aircraft. Thus Cathay Pacific becomes its ain provider so it can command its inputs. Beside. for maintaining the market portions in the air hose industry. Cathay Pacific has taken over the Dragonair. Cathay Pacific is combine with Dragonair that to increase the competitory strengths and lower competition among industry challengers. To increase the net income and promote the possible clients. Cathay Pacific set up the Asia Miles rank to take at pulling the invitee to be the trueness client.

In order to derive the attractive force from the citizen. Cathay Pacific had joined the Chinese New Year Parade in every Chinese New Year to maintain their exposure to the populace. Furthermore.

Cathay Pacific go oning to function the same rider by offering the same merchandise or service that to keep market portion and prolonging the current concern operation such as supplying the long-haul services with an acceptable monetary value. It will non fall behind in the air hose industry.

Recommendations and principle on its corporate scheme

In the instance of Cathay Pacific Airways. market development and merchandise development is the best suit their manner of making concern. Market development is suited to their concern since they have already penetrated the bing markets. It is of import to market their merchandise on new markets. Product development is besides suited to maximise their net incomes. Merchandise development would besides enable them to offer more merchandises and services in which are needed by the bing client and may besides ask for possible clients therefore increasing their net incomes.

In an progressively competitory environment it is important to keep and develop rider trueness by supplying high quality merchandises and services. we suggested increasing some regional services in response to more robust demand in parts of Asia. Cathay Pacific should added frequences on paths to India. Japan. Malaysia. Singapore. Taiwan. Thailand and Vietnam and introduced a new service to Hyderabad in India. For supplying a more comfy and an unforgettable winging experience to the client. a new premium economic system category. a new long-haul economic system category place and a new regional concern category place will be added.

To keep the competitory advantages. Cathay Pacific should implement a more convenience planetary cyberspace service and vitamin E Business platforms. The execution will guarantee staff worldwide can take advantage of improved public presentation and secure. cost-efficient entree

to critical concern applications such as reserves. gross revenues information. gross direction and technology systems. The planetary Internet solution will enable future applications and rider services to be quickly and merely developed and deployed worldwide. while besides cut downing telecommunications costs. This new rental of life agencies that the air hose can break adapt to the demands of its markets and be antiphonal to altering concern demands.

Cathay Pacific put safety in the first precedence – safety is the first and most of import clause of Cathay Pacific mission statement and has been a nucleus committedness since the initiation of air hose more than 65 old ages ago. In nutrient safety. Cathay Pacific continues to make their uttermost to function repasts that meet the highest degrees of nutrient safety and hygiene. It works with caterers to make well-balanced repasts. minimising the usage of trans-fats. and follow the policy on no monosodium glutamate. The policies on nutrient safety and hygiene are based on accepted criterions. such as the World Food Safety Guidelines for Airline Catering. Our caterers must follow with our rigorous nutrient safety demands and they are measured and monitored through our robust audit programme.

In order to hold horizontal integrating. we advise Cathay Pacific can take over the Hong Kong Airline and Hong Kong Express Airways. The mark market is chiefly focal point on the low air ticket monetary value market and offer bundle circuit. Cathay Pacific can spread out the market portion on low terminal.

For diversify the Asia Miles rank. we recommend to co-operate with different recognition card publishing Bankss. Through the recognition cards. rider can easy roll up their pints to change over to

mileage. In return helps to pull more riders to buy our services.

To elicit people attractive force. Cathay Pacific non merely has the Television advertizement but besides to set the resources on other median to advance the company. As the high cost of fuel. it made hard to run in some long-haul services productively. We suggest Cathay Pacific to utilize fuel-efficient Boeing 777-300ER aircraft to alternatively of the less fuel-efficient Boeing 747-400 aircraft operate to on the long-haul services.

hypertext transfer protocol: //www. cathaypacific. com/cpa/en_INTL/homepage
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hypertext transfer protocol: //www. ukessays. com/essays/marketing/analysis-of-hong-kong-airline-cathay-pacific-airways-marketing-essay. php hypertext transfer protocol: //ivythesis. typepad. com/term_paper_topics/2010/02/swot-analysis-of-cathay-pacific. html hypertext transfer protocol: //www. allfreepapers. com/Business/Competitive-Advantage-Airlines/29593. html hypertext transfer protocol: //wiki. mbalib. com/zh-tw/ % E9 % A6 % 99 % E6 % B8 % AF % E5 % 9B % BD % E6 % B3 % B0 % E8 % 88 % AA % E7 % A9 % BA % E5 % 85 % AC % E5 % 8F % B8 hypertext transfer protocol: //en. wikipedia. org/wiki/Hong_Kong_Airlines

hypertext transfer protocol: //en. wikipedia. org/wiki/Hong_Kong_Express_Airways
hypertext transfer protocol: //www. cathaypacific. com/cpa/en_INTL/aboutus
hypertext transfer protocol: //www. cathaypacific. com/cpa/en_HK/aboutus/mediacentre/cxworld? CX_LANGUAGE=en & A ; CX_COUNTRY=HK hypertext transfer protocol: //www. cathaypacific. com/cpa/en_INTL/homepage? CX_FCN=CXHOME0_Home

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