Premium Essay

Swot Analysis Of Cathay Pacific

Submitted By
Words 924
Pages 4
Strengths
- Safety
Gilbert and Wong (2003) found that safety is always the first priority for passengers. (1)
Cathay has been gained the world’s safety airline for the 3rd years by Germany’s Jet Arline Crash
Data Evaluation Centre (2). High safety standard can get the trust of the passengers. - Global network/ Wide coverage
Both Cathay and Cathay Dragon reaching more than 90 destinations, throughout Asia, the Pacific, Europe, North America, the Middle East and Africa.
Cathay also a member of “Oneworld” an alliance of the world’s leading airlines, passengers can travel over 1000 destination under the alliance.
At March 2017, Cathay with the Lufthansa Group accomplished a co-operation agreement. Under the agreement, Cathay Pacific will
…show more content…
(5)
Cathay positions itself as an airline offering quality service, service is absolutely critical. Cathay has been gained the Skytrax Airline of the Year in 2003/2005/2009 and 2014 (6). But we’ve found its go backward in different aspects in recent years.
High level on-time performance is a key aspect of quality at the airline. However, according to the On-time performance monthly report (June 2017) Aviation Worldwide Limited (7), both Cathay Dragon and Cathay Pacific ranked at no.134 (on time percentage – 52.1%) and no.125 (on-time percentage – 63.8%) compare to Global airlines (total 376 airlines) and ranked at no.112 and no.81 compare to ASPAC airlines (total 117 airlines). The situation is even worse than some budget airlines.

For improve profitability, Cathay is re-configuration the economy class from 9 to 10 seats from 2016. It means that’s reducing the comfort of the passengers (8).
On the other hand, the frequency for deep cleaning of the aircraft cabins has been declined from once every 14 days to once every 21-30 days.
…show more content…
Threats
- Chinese airlines offering direct routes to other countries has resulted in dwindling number of people flying to Hong Kong
Few years before, about 25% of passengers of Cathay were from mainland China, Hong Kong is a transit station to them to go to other countries. However, more and more international routes provided by the Chinese airlines in recent years. At 2012, there’s only 4 China Cities with direct flights to north America, it has been up to 16 cities in 2017(14)
Beside Air China, China Eastern Airline and China Southern Airline offering international routes, started from 2015, Xiamen Air, Sichuan Airlines and Beijing Airlines are also preparing to increase the routes to other countries.
On the other hand, some Chinese airlines/ routes would get funds/ policy support from the China government, the competitive power in between Cathay and the Chinese Airlines is getting farther and farther. - Fluctuate oil price and the impact of fuel hedging

Similar Documents

Premium Essay

Final Project

...Advantage for Cathay Pacific | |Background | | | |Cathay Pacific Airways announced 2014 annual results in March 2015, the company stated that the business outlook for 2015 looked to be improved when| |compared to the previous year. However, a number of factors had a significant negative impact on their business. | | | |The principal adverse factors were reduced passenger yield, the continued high fuel price and the increased competition on Hong Kong routes and | |within the region have led to price wars in a climate of economic uncertainty. The Hong Kong-based airline faces a potentially more daunting | |challenge: budget carriers. | | | |In response to the situation, Cathay Pacific continues to...

Words: 673 - Pages: 3

Premium Essay

Virgin Atalantic

...Strategic Management Group Project Virgin Atlantic Airways Limited Instructor: Mr. Audun Fiskerud Presented by: Mikael Tving Therkildsen - Jacob Brodersen – Jonas Ravn Nielsen - Gary Chuyu Fang Executive summary This report strategically analyses the Strategy Business Unit (SBU), passenger transfer service, for Virgin Atlantic Airways Limited. The strategic analysis contains investigation of certain key business areas of Virgin Atlantic, such as: defining whom the Virgin Atlantic customer is; understanding of the external environment issues of the airline industry; competitor analysis, and analysis of the Human Resources within the organization. Through the analysis of Virgin Atlantic Airways Limited, some issues for the company were uncovered. Especially two main issues should be considered as potential problems for Virgin Atlantic’s business unit and so action needs to be taken within these areas: 1. Lacking economy of scale (size of the company). 2. Increasing environmental awareness among customers. 1. Virgin Atlantic lacks economy of scale because of the size of the company and limited routes available. To be able to compete effectively and gain greater profits through economy of scale, Virgin Atlantic has to expand by opening new routes. The implementation of this will require strategic financial planning and adjustment of the company structure. It is likely that this process will take several years; however, this change is necessary to increase......

Words: 8756 - Pages: 36

Premium Essay

Hong Kong Budget Airline Analysis

...Hong Kong Budget Airline Industry Analysis By Jaeyeong Ahn 1155032046 Xie Jianting 1155001899 Shi Weiran 1155002072 Tan Jiayi 1009609441 Gao Jingya 1155001997 TABLE OF CONTENTS 1. Introduction 2. Budget Airline Industry 2.1 Definition & Pricing Model 2.2 Common Practices to Lower Overall Costs 2.3 Development of Budget Airline in America, Europe and Asia 3. Hong Kong Market Analysis 3.1 Competitive Landscape 3.2 Major Budget Airlines in Hong Kong 3.3 Market Analysis 3.4 Target Customer Analysis 4. SWOT Analysis of Budget Airlines 4.1 Strengths 4.2 Weaknesses 4. 3 Opportunities 4.4 Threats 5. Analysis of Success Factors in Budget Airline Industry 5.1 AirAsia’s Success in Asia 5.2 Oasis’s Failure in Hong Kong 6. Conclusion 1. Introduction In September 2013, Hong Kong Express Airways announced its plan to transform itself into a budget airline. Meanwhile, Jetstar, an Australian budget airline, has applied for an operating license in Hong Kong under the belief that there are abundant opportunities for growth in the budget airline industry. However, Hong Kong-based airlines Cathay Pacific and Dragonair strongly insist that the market is saturated, and that new entrants into the market will harm the airline industry as a whole. The purpose of this report is to analyze the prospect of budget airline industry in Hong Kong and to determine if...

Words: 4127 - Pages: 17

Premium Essay

From Consultation to Partnership

...do business. Pros: * Increase profitability * Opportunity to penetrate new markets * Competitive advantage to offer lower pricing Cons: * High turn over rate resulting from employees who cannot relocate. * High costs associated with relocating * Potential loss of customers Step 4 - Select the Best Alternative Solution. The best alternative solution is to pursue other joint ventures. Joint ventures are flexible, strengthen long-term relationships, and reduce competition. They also provide access to new markets and distribution networks. Although, there are still risks involved with joint ventures they advantages far outweigh the risks. Additionally. HAECO has had great success with joint ventures with Cathay Pacific,...

Words: 333 - Pages: 2

Premium Essay

Management and Current Day Applicability

...MGMT 1136 James Khng (20946399) ASSIGNMENT 1 – ESSAY THEORETICAL MANAGEMENT AND ITS MODERN DAY APPLICABILITY Question:  Newton is quoted as saying in 1676; “If I have seen further, it is by standing on the shoulders of giants”. Discuss the ways how a modern day manager benefit from a study of the historical development of management thought. In doing this you need to specifically show how aspects of management theories from the past can be applied to contemporary management practice. The ability and means by which an organisation is run, requires for strong managerial expertise and leadership. The ability to realistically plan, organise resources effectively and efficiently, co-ordinate and control resources in this every changing, complex, dynamic environment is at the forefront of quality managerial practices. Good management has demonstrated itself more important than ever, with the peak Global Financial crisis in 2008/2009 proving that the historical theory’s and innovations in managerial practices are absolutely paramount to thriving economic prosperity. It is through the functions, approaches included in the literature of Henri Fayol’s 1949 English translated General and Industrial Management, Henry Mintzberg’s studies into......

Words: 2507 - Pages: 11

Premium Essay

Air New Zealand

...Executive Summary This report provides an analysis and evaluation of Air New Zealand. Method of analysis this report is SWOT analysis and five forces module. Other analysis includes deep investigation on company profiles. The report founds the weakness and strength in the company and examines internal and external factors that might influence the survivability of Air New Zealand. The report will explain how Air New Zealand handles the pressure from every competition they faced until today. All strategies will be discussed in evaluation section of this report. In addition to the conclusion of evaluation; this report will also answer the case studies that being related to Air New Zealand, they are: 1. Discuss how barriers to entry in the airline industry have changed in the past decade. 2. In light of such lowering of barriers, what opportunities are there for there for Air New Zealand to pursue? 3. Air New Zealand must consider different stakeholders in its pursuit of corporate strategies. Identify the key stakeholders and their concerns Introduction Air New Zealand Limited, is the national airline and flag carrier of New Zealand. Since the appointment of Ralph Norris as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. Structural changes in the marketplace made a new direction indispensable and Air NZ is now turning away from inflexible service offerings to align its......

Words: 2206 - Pages: 9

Premium Essay

Hong Kong and Shenzhen’s Coopetition in Logistics Industry

...years from 1992 to 2004, is globally well known and this container port industry became one of its vital economic pillars. Such a prosperous development began in 1970s with the boom of manufacturing business activities. The effect on the end of ‘close-door policy’ of China was reflected in early 1990s due to the launching and the rapid development of ports among Pearl River Delta. Hong Kong started to face severe challenges from the neighboring ports, its market share drops significantly since 1997; whereas that of Shenzhen grows rapidly. The goal of this paper is to analysis the current situations of Hong Kong Port and its relationship with neighboring ports in Shenzhen; and to derive possible strategies for Hong Kong to maintain and sustain its competitiveness under these circumstances. Table of Contents Chapter 1: Introduction 1 Chapter 2: Analysis 3 2.1 Hardware 3 2.2 Software 6 2.3. SWOT Analysis 10 2.4 Logistics Synergy (Co-opetition) of Hong Kong Plus Shenzhen 11 Chapter 3: Solutions 12 3.1 Framework Agreement 12 3.2 CEPA 12 3.3 PRD A5 Group 13 3.4 National 12th Five-Year Plan Budgeting 15 3.5 2030 Hong Kong International Airport Master Plan: Hong Kong International Airport – Gateway and Hub 16 3.6 Improve HKIA’s Transhipment Capability: Development of E-Commerce 17 3.7 The role of legislation 18 3.8 Develop Logistics Park 18 Chapter 4: Conclusion 19 References 20 | Chapter 1: Introduction In 1970s, Hong Kong port experienced...

Words: 6825 - Pages: 28

Premium Essay

Others

...Introduction: In modern world tourism plays an integral part on the economy of a destination. Increase in tourism has given rise to many airline companies to provide the best service and safety to an individual to make his journey a memorable one. Airline companies are constantly upgrading with technology and other services for competing in this ever-growing airline industry. Malaysian airlines is one of the prestigious passenger airline carrier owned and run by the government of Malaysia also known as MAS in short. Malaysian airlines operates in more than 60 destinations around the world. Product and Experience Analysis: Malaysia Airways is one of the mid cost airline company and operates from the homeland base Kuala Lumpur. Malaysian airlines has established itself in the South East Asia region and travelling around the world. Malaysian airlines is one of the few airlines to be awarded with the 5 star airline status by Skytrax. Malaysian airlines also operates 2 airline subsidiaries Firefly and MASwings which operate internally within Malaysia. Other services offered by MAS include things like architectural operation, resort management, catering, digital booking companies, transportation and warehousing companies. MAS is an international carrier operating in 117 domestic destinations and 115 international routes in six continents. MAS offers 3 different classes first, business and economy class to suit the customer needs and compared to other 5 star airlines the prices......

Words: 1839 - Pages: 8

Premium Essay

Group Presentation

...Adonis Nix Candice Mitchell Renesha Randolph Singapore Airlines HISTORY Singapore Airlines’ history can be traced back to 1 May 1947, when a Malayan Airways Limited Airspeed Consul took off from Singapore Kallang Airport on the first of three scheduled flights a week to Kuala Lumpur, Ipoh and Penang. • Over the next five years, larger capacity DC-3 aircraft were introduced. This meant faster and more comfortable flights, and the extension of services to destinations in Indonesia, Vietnam, Burma (now Myanmar), North Borneo (Sabah) and Sarawak. • Inflight refreshments improved from the original thermos flask of iced water to sandwiches, biscuits and cold cuts plus a choice of hot and cold drinks, and alcoholic beverages served by a lone hostess. Known as “female pursers”, these hostesses are the forerunners of today’s Singapore Girl. On 16 September 1963, the Federation of Malaysia was born and the Airline became known as Malaysian Airways Limited. In May 1972, it became Malaysia-Singapore Airlines (MSA). Products and services Inflight refreshments improved from the original thermos flask of iced water to sandwiches, biscuits and cold cuts plus a choice of hot and cold drinks, and alcoholic beverages served by a lone hostess. In September 1998, Singapore Airlines set new standards in air travel by unveiling a new suite of products and services worth S$500 million across all three classes of travel, offering customers enhanced standards of service on the ground and...

Words: 1056 - Pages: 5

Free Essay

Jet Blue Situational Analysis

...I. Customer Analysis a. Who: consumer, business, national, international i. Consumer: Younger, affluent, present on social media, fare-conscious 1. The “middle space” for those who dislike larger airlines and love amenities that low-cost rivals don’t offer ii. Business: NY Jet’s Official Team Carrier iii. National: Serves 90+ destinations in 25 states, the District of Columbia, Puerto Rico, and Virgin Islands 2. New routes from: Detroit, Ft. Lauderdale, Hartford Springfield (CT), Washington-National (DC), Salt Lake City, Orlando, Las Vegas, San Francisco, Cleveland, West Palm Beach, NYC, Pittsburgh, Boston, Savannah/Hilton Head, Charleston, Fort Myers, Reno/Tahoe, Martha’s Vineyard, Anchorage, Portland, and Nantucket iv. International: Serves 15 countries in the Caribbean and Latin America 3. New routes from: Nassau (Bahamas), Port of Spain (Trinidad & Tobago), Curacao (Curacao), Catagena (Colombia), Montego Bay (Jamaica), Newark, Punta Cana, Hyannis/Cape Cod (MA), St. Lucia (UVF), Puerto, Plata (DR), Santiago (DR), and Port-au-Prince (Haiti) b. B2B, B2C, etc. v. B2B: Subsidiary, LiveTB, LLC, provides in-flight entertainment systems and internet connectivity in commercial aircrafts, sells vacation packages through JetBlue Getaways which provides fares for air travel on JetBlue along with a selection of JetBlue-recommended hotels, resorts, car rentals, and attractions ......

Words: 1150 - Pages: 5

Premium Essay

Positioning Strategy with a New Identity: a Case Study of Vietnam Airlines

...POSITIONING STRATEGY WITH A NEW IDENTITY: A case study of VIETNAM AIRLINES by Le Hong Dac A research study submitted in partial fulfillment of the requirements for the degree of Master in Business Administration Examination Committee: Dr. Truong Quang (Chairman) Dr. Clemens Bechter Dr. Lalit.M.Johri Nationality: Vietnamese Previous Degree: Bachelor of Economics University of Agriculture and Forestry HoChiMinh City, Vietnam Scholarship Donor: The Government of Switzerland Asian Institute of Technology School of Management Bangkok, Thailand August 1999 Acknowledgement I wish to express my profound gratitude and great appreciation to my advisor Dr. Truong Quang for his valuable guidance, advice and encouragement throughout the research study. Special thanks are extended to the other members of the Examination Committee, Dr. Clemens Bechter and Dr.Lalit.M.Johri for taking interests and giving valuable suggestions to improve the content of this study. Deep appreciation and thanks are also extended to Mr. Luong Hoai Nam, Mr. Trinh Ngoc Thanh, Mr. Duong Tri Thanh, Mr. Mai Quoc Tuan, Mr. Nguyen Thuong Hai, Mrs. Nguyen Thi Minh Yen and Mr. Le Dinh Tuan of Vietnam Airlines Corporation for providing me the desired information and data for this research study. I fall short of......

Words: 27680 - Pages: 111

Premium Essay

Auditing

...The report is done from the perspective of auditing. Multiple aspects of Virgin Blue such as strengths, weakness, opportunities and threats are analyzed in the first part. And in the second part five audit risks are identified and explained. Finally, since the appointment of new CEO, the impact of Virgin Blue is illustrated. 1. SWOT analysis * Strengths * Strong brand name and good reputation * Offering competitive fares with high quality customer service and awarded the Best Low-Cost Airline in Australia 2009 * Excellent on-time performance record * Successful loyalty program | * Weakness * Lacking experience in its new long haul business * High percentage of cancellations * Lower margin compared with competitors * Loose supervision * Unstable IT System | * Opportunities * Develop corporate travel market: market share against Qantas * International partnerships: Use Delta, Emirates partnerships to grow product offering against Qantas * Recovering global economy * Increasing immigration * Increasingly advanced technology enables airlines to provide more convenience to travelers | * Threats * Competition from domestic airlines, e.g. Qantas, etc * Upward pressure from fuel Jet fuel prices * Greater international competition: further expansion of Tiger network * Heavily reliance on internet as sales channel exposes them to risks associated with system disruption | 2. Key audit risks ...

Words: 2852 - Pages: 12

Premium Essay

Porter Airlines Strategic Analysis

...Executive Summary Porter Airlines, a short-haul commercial airliner established in 2002, have enjoyed significant and steady growth since inception. The concern now is to devise a solution that will allow Porter to continue its controlled expansion strategy, as it has been so successful and integral to the growth of the company over the past several years. Situation Analysis Porter Airlines operates in a fiercely competitive airline industry, where competitors compete based on price, service, and comfort of passengers, and frequently engages in predatory practices to squeeze out smaller players in the market. The performance of the company depends on external environment factors, such as economic factors of oil and fare prices that will influence margins, or political factors impacting the future bridge and accessibility improvements to the city center airport. Porter’s competitive advantage is linked to the convenience of the Toronto City Center Airport, such as proximity to business core and expedited security and check-in times. Additionally, a critical success factor for Porter is to maintain the commercial exclusivity on the airport, to take advantage of cost savings as a result of being the owner, tenant, and operator. Competitive advantage is also a result of operating a single class of aircraft that has significant cost and operational efficiencies. Alternatives and Recommendation ------------------------------------------------- Several alternatives were......

Words: 3097 - Pages: 13

Free Essay

Kingfisher Crisis

...India. It is a major Indian airline operating 218 flights a day and has an extensive network to 37 destinations, with plans for regional and long-haul international services. Its main bases are Bangalore International Airport, Bangalore, Chhatrapati Shivaji International Airport, Mumbai and Indira Gandhi International Airport, Delhi. Kingfisher Airlines, through one of its holding companies United Breweries Group, has acquired 26% stake in the budget airline Air Deccan and has option to buy further of 20% stake from the secondary market. Kingfisher is one of only 6 airlines in the world to have a 5 star rating from Skytrax, along with Asiana Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay Pacific Airways.  3. Situational Analysis  i. Steeple analysis  Sociological  Today’s air traveler is like any other consumer looking for value for money. Disposable incomes are on the rise and the consumer is willing to spend more for quality and brands. Air travel is no more about transporting passengers. It is more about the flying experience. People like travelling in planes. ‘Kingfisher airlines’ has a very good social image. Being a five star airlines, customers want to travel with Kingfisher. Also, the brand charges a premium price that is why only upper Socio Economic Class people prefer Kingfisher airlines. The lifestyle of the people is improving. Luxury is becoming necessary. They are ready to pay more for luxury services. Kingfisher has a......

Words: 2486 - Pages: 10

Free Essay

Neptune

...Abstract Neptune Gourmet Seafood is facing a problem with oversupply for existing demand. It can either decrease supply to match demand or increase demand to match supply. I recommend the latter. I further recommend the way to increase demand is for Neptune to increase its marketing efforts in its existing markets and to penetrate other markets it currently is not in. The Competitive Environment Neptune is a 40-year-old, $820,000,000 company, specializing in quality shell and non-shell seafood in a $20 million industry. It is North America¡¦s third-largest seafood producer, but that designation is misleading, because its revenues account for only 4.1% of the total market. As such it is but one of many firms operating in the seafood processing industry, one whose market structure could be termed monopolistic competition. The industry is not limited to North American firms such as Neptune, but also includes companies from China, Peru, Chile, and Japan, competition from which has pushed Neptune to upgrade its fishing fleet and which also has helped shrink the company¡¦s margins by 10%.. Neptune markets to the high end of the market, differentiating itself from the competition by its quality, selling its high-end brand at 25-30% above the rest of the market. Their years of ex perience coupled with the company¡¦s value development pose a threat to any new firm trying to enter the market. It is the only member company of the U.S. Association of Seafood Processors and......

Words: 3450 - Pages: 14