Cathay Pacific Limited is an airline based in Hong Kong. It transports passengers and cargo to over 120 cities world-wide. Its main base and hub is at Hong Kong International Airport. It is one of the six airlines in the world to get a five star rating from Skytrax. It won "Airline of the Year" award from Skytrax in 2003, 2005 and 2009. Its sister airline is Dragon air which serves destinations in mainland China and Asia. Cathay Pacific operates a fleet of Airbus A321, Airbus A321NEO, Airbus A330, Airbus A350 and Boeing 777. While Cathay Pacific Cargo uses 2 different models of the Boeing 747. The airline was created on the 24th of September in 1946, by Sydney H. de Kantzow and Roy C. Farrell. Cathay Pacific and Cathay Pacific Cargo, together with Dragonair, carried nearly 27 million passengers and over 1.8 million tons of cargo and mail. Cathay Pacific is also one of the founding members of the Oneworld alliance.
History
1946–1960: The early years
Betsy, A Douglas DC-3, Cathay Pacific's first aircraft.
Cathay Pacific was founded on the 24th of September in 1946 in Hong Kong by Sydney H. de Kantzow and Roy C. Farrell. Farrel bought the company the first Douglas DC-3, Nicknamed Betsy. They began by transporting cargo from Sydney to Shanghai on the 28th of January 1946. On the 11th of May 1946 they changed their route from Sydney to Shanghai to Sydney to Hong Kong, after China kept detaining the aircraft. Farrell and de Kantzow re-registered their business in Hong Kong on the 24th of September 1946 as Cathay Pacific Airways. They named the airline Cathay, because it was the ancient name given to China by the Europeans. The airline grew very fast. By 1947, it had 7 Douglas DC-3s and 2 Vickers Catalina seaplanes.
1960–1990: Expansion
A Cathay Pacific Convair 880 in flight
The airline prospered in the late 1950s and into the 1960s, and it purchased its then main rival, Hong Kong Airways, on the 1st of July 1959. In 1964, it carried its one millionth passenger and acquired its first jet engine aircraft, the Convair 880. In 1967, it became an all jet airline with the replacement of its last Lockheed L-188 Electra with a Convair 880. In 1971, Cathay Pacific Airways received the first Boeing aircraft 707-320B. By 1972 it had five 707s. In July 1976 it began operating a Boeing 707 freighter from Hong Kong to Seoul, Bangkok and Singapore. In 1974 Cathay Pacific planned a route from Hong Kong to London. with a Boeing 747. In 1979, Cathay Pacific received its first Boeing 747 and used it for the route. The first flight on this route took place on the 16th of July in 1979. In 1982, Cathay Pacific Airways introduced Cathay Pacific Cargo.
1990–2000: Rebranding, renewal, and Oneworld
A Cathay Pacific Boeing 777-200
In the mid 90s, Cathay Pacific began a fleet replacement, which had a total cost of US$9 billion. On the 21st of May 1998, Cathay Pacific took the first delivery of the Boeing 777-300. On 21 September 1998, Cathay Pacific, together with American Airlines, British Airways, Canadian Airlines, and Qantas, co-founded Oneworld airline alliance. Cathay Pacific recorded a record HK$5 billion profit in 2000.
In 2000 Cathay Pacific, experience labour relations issues while completing the acquisition of Dragonair.
The 49ers – employment dispute
On 9 July 2001, reportedly following a review of the employment histories of all its pilots, the company fired 49 of its 1,500 pilots. This group became known as "the 49ers". Nearly half of the fired pilots were captains, representing five percent of the total pilots.
Acquisition and downsizing of Dragonair
A Dragon Air A320-200
On 28 September 2006, Cathay Pacific underwent a shareholding realignment under which Dragonair became an owned subsidiary but continued to operate under its brand. In January 2016, Cathay Pacific announced it was rebranding Dragonair as Cathay Dragon. On 21 October 2020, Cathay Pacific announced that it would shut down all operations of Cathay Dragon and merge it with its parent company due to the lack of customers and heavy economic problems brought by the COVID-19 pandemic. This merger marked the end for the subsidiary carrier after 35 years of operation.
Economic challenges
To celebrate the airline's 60th anniversary in 2006, a year of roadshows named the "Cathay Pacific 60th Anniversary Skyshow" was held where the public could see the developments of the airline. In March 2009, the airline reported a record full-year loss of HK$8.56 billion for 2008, which was also the carrier's first since the 1997 Asian Financial Crisis.
Current developments
A Cathay Pacific Airbus A330
In 2010, the airline set another record high profit, amounting to HK$14.05 billion despite record losses set in the same decade. At the same time, Cathay Pacific had taken delivery of several new aircraft types, including the Airbus A330-300 and Boeing 777-300ER. Tony Tyler left his position as CEO at the airline on 31 March 2010. Chief operating officer John Slosar had succeeded as the new CEO. On 8 October 2016, Cathay Pacific retired their last passenger Boeing 747 with a farewell scenic flight around Hong Kong after over 35 years of service of the type. Cathay operated the 747 since August 1979, when it was on services to Australia.
2018 data breach
In 2018, the airline discovered a data breach. Data of around 9.4 million passengers were compromised during the breach, with 860,000 passport numbers, 245,000 Hong Kong identity card numbers, 403 expired credit card numbers, and 27 credit card numbers without CVV being accessed. No passwords were stolen. The breach was suspected in March 2018 but was confirmed only in May 2018. In March 2020, the company was fined £500,000 (U.S. $639,600) by the British Information Commissioner's Office.
2017-2019 transformation
Under new leadership, the airline started to transform its business after suffering from 2 years of consecutive loss. The strategy focuses on 5Ps – Places, Planes, Product, People, and Productivity to find new sources of revenue, deliver more value to its customers and improve efficiency and productivity. It has launched 13 new routes since 2017, introduced a wide range of changes to its service, including bringing back hot meals on its most busy route between Hong Kong and Taipei. The airline has also invested significantly in other hard product and digital offerings such as an upgraded website, new or refurbished lounges across its network, including the first airline lounge yoga studio. Wi-Fi was introduced in 2017 and will be retrofitted across its fleet by 2020.
Acquisition of HK Express
On 27 March 2019, Cathay Pacific officially announced it would acquire HK Express, the only low-cost carrier in Hong Kong. It cost Cathay Pacific in total HK$4.93 billion.
Hong Kong protests
During the 2019–20 Hong Kong protests, Cathay Pacific employees participated in protests at Hong Kong International Airport. The Beijing government, which is a shareholder in Cathay Pacific, ordered Cathay to suspend any employees who participated in the protest. Cathay Pacific later suspended a pilot who was arrested during a protest.
COVID-19
The COVID-19 pandemic led to travel bans and significantly reduced flight demands, which caused Cathay Pacific to cut international flights in response. In 2020, 96% of all flights from March to May were cancelled, while the group's subsidiary HK Express suspended all flight operations from 23 March to 30 April 2020, due to reduced demand. At one point during the crisis, only 582 passengers flew with Cathay Pacific in an entire day.
In December 2020, the company said that it expected losses in the second half higher than the losses of the first half due to low demand, restructuring charges and impairments on its fleet.
In 2021, the company posted a record annual loss of $2.8 billion for 2020. It was also announced that the company would cut an additional 8,500 jobs.
In June 2021, the company said that losses in 2021 are expected to be lower than US$1.27 billion in 2020, due to cost-saving measures and strong demand for cargo flights.
Recapitalisation and government bailout
On 9 June 2020, Cathay Pacific, Swire Pacific and Air China halted stock trade pending the announcement. On 10 June, Cathay Pacific and the Government of Hong Kong jointly announced a HK$39 billion recapitalization plan and rescue package for Cathay Pacific.
Destinations
As of December 2022, Cathay Pacific serves 74 destinations including charter and cargo services, in 29 countries across Asia, Europe, North America and Oceania.
Since its inception in 1946, the Cathay Pacific fleet has operated many types of aircraft. The first aircraft was a World War II surplus Douglas DC-3, named Betsy. the first aircraft for Cathay Pacific, is now a permanent exhibit in the Hong Kong Science Museum.
Cathay Pacific had ten incidents and accidents over its history, although none have resulted in a hull loss or loss of life since 1972. Cathay Pacific is generally regarded to have a good safety reputation and has been rated as one of the world's safest airlines.
On 16 July 1948, Miss Macao, a Cathay Pacific-subsidiary-operated Consolidated PBY-5A Catalina (VR-HDT) from Macau to Hong Kong was hijacked by four men, who killed the pilot after take-off. The aircraft crashed in the Pearl River Delta near Zhuhai. Twenty-six people died, leaving only one survivor, a hijacker. This was the first hijacking of a commercial airliner in the world.[12]
On 24 February 1949, a Cathay Pacific Douglas C-47 Skytrain (registered VR-HDG) from Manila to Hong Kong, crashed near Braemar Reservoir after a go-around in poor weather. All 23 people on board died.[13]
On 13 September 1949, a Cathay Pacific Douglas C-47 Skytrain (registered VR-HDW) departing from Anisakan, Burma, crashed on take-off when the right-hand main gear leg collapsed. There were no reported fatalities.[14]
On 23 July 1954, a Cathay Pacific Douglas C-54 Skymaster (registered VR-HEU) from Bangkok to Hong Kong was shot down by aircraft of the People's Liberation Army Air Force in the South China Sea near Hainan Island. Ten people died, leaving nine survivors. After the incident, Cathay Pacific received an apology and compensation from the People's Liberation Army Air Force. It was apparently mistaken for a Nationalist Chinese military aircraft.[15]
On 5 November 1967, Cathay Pacific Flight 033, operated by a Convair 880 (registered VR-HFX) from Hong Kong to Saigon, overran the runway at Kai Tak Airport. One person was killed and the aircraft was written off.[16]
On 15 June 1972, Cathay Pacific Flight 700Z, operated by a Convair 880 (registered VR-HFZ) from Bangkok to Hong Kong, disintegrated and crashed while the aircraft was flying at 29,000 feet (8,800 m) over Pleiku, Vietnam after a bomb exploded in a suitcase placed under a seat in the cabin, killing all 81 people on board.[17] This remains the last Cathay Pacific incident to involve a total hull-loss and passenger fatalities.
On 15 August 2018, Cathay Pacific Flight 292, operated by a Boeing 777-300ER (registered B-KPY) suffered serious damage to the edge of its right wing after colliding with a floodlight pole in Rome–Fiumicino Airport during pushback. No injuries were reported.
↑Kaminski-Morrow, David. "Cathay appears to switch more A350-1000s to -900s". FlightGlobal. Retrieved 12 August 2020. But Cathay's first-half financial results state that the airline has outstanding orders for six of each variant, indicating a conversion of two -1000s to -900s.
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