Cathay Pacific CargoCathay Pacific Cargo
The Italian Air Cargo Market ConferenceThe Italian Air Cargo Market Conference5-6 Luglio5-6 Luglio
PisaPisa
Politiche di Presenza in Politiche di Presenza in Europa e in Italia di un Europa e in Italia di un Vettore Dell’Eastremo Vettore Dell’Eastremo
OrienteOriente
• World Wide Strategy
• Freighter Network
• European Focus
• Italy and Cathay Pacific
• The Future
• All “Roads” lead to Hong Kong, and through Hong Kong
System SplitSystem Split
SEA7% Europe
11%
N. America6%
Japan/Korea15%
Taiwan/Philippines9%
Aust/NZ4%
India/M.E.2%
Hong Kong46%
• All “Roads” lead to Hong Kong, and through Hong Kong
• Heavy Focus on N. Asia / Europe
• SEA Demand Mainly Satisfied with High Wide Body Passenger Aircraft Frequency.
CX Cargo Capacity by RegionCX Cargo Capacity by Region
0
20
40
60
80
100
120
140
Europe N.America N. Asia S. Asia Aust/NZ
'000 Ton
• All “Roads” lead to Hong Kong, and through Hong Kong
• Heavy Focus on N. Asia / Europe
• SEA Demand Mainly Satisfied with High Wide Body Passenger Aircraft Frequency.
• N. America and Europe Growing Fast
Asian Markets Lead GrowthAsian Markets Lead Growth
2 4 6 8 10
Intra-Asia
North America-Asia
Europe-Asia
North America-Europe
North America-Latin America
Intra-Europe
Europe-Middle East
Europe-Africa
Europe-Latin America
North America
% Growth
Source: Boeing
Change in World Air Cargo Market ShareChange in World Air Cargo Market Share
0,0
5,0
10,0
15,0
20,0
25,0
30,020002020
% Share of world total market
North America-Asia
North America
Europe-Asia
NorthAmerica-Europe
Intra-Asia
NorthAmerica-
Latin America
Europe-Africa
Europe-Middle East
Europe-Latin America
Intra-Europe
Source: Boeing 1999
• World Wide Strategy
• Freighter Network
Eur X 31
Departures Weekly
N.A. X 26
Aust X 4
JPN/Twn X 17
KOR X 5
PEN X 2
• World Wide Strategy
• Freighter Network
• European Focus
European FocusEuropean Focus
• Due to trade volumes and trade growth with Hong Kong, Europe has been major focus since 1981
• Historical connection to Europe due originally European company
• Major European industries set-up “off-shore” production in Hong Kong and Southern China
18 B747-Freighter flights Europe-HKG 18 B747-Freighter flights Europe-HKG per week.per week.
11 x FRA4 x LHR
3 x CDG
Up to 31 June 2002
29 B747-Freighter flights Europe-HKG 29 B747-Freighter flights Europe-HKG per week.per week.
11 x FRA
4 x LHR
3 x CDG
After 01 Jul 2002
5 x BRU
6 X MAN
31 B747-Freighter flights Europe-HKG 31 B747-Freighter flights Europe-HKG per week.per week.
11 x FRA
4 x LHR
3 x CDG
After 05 Aug 2002
5 x BRU
6 X MAN
2 x MXP
32 times Europe HKG per week.32 times Europe HKG per week.
7 x FRA11 x LHR
7 x CDG
4x ROM
5 x AMS
Passenger Services
• World Wide Strategy
• Freighter Network
• European Focus
• Italy and Cathay Pacific
Italy and Cathay PacificItaly and Cathay Pacific
• Italy is an important market for Cathay Pacific• Hong Kong SAR is Italy’s third largest Asian Air
Freight partner
Italy - Asia Air Cargo Tonnage Split (two-way)Italy - Asia Air Cargo Tonnage Split (two-way)
Japan34%
PRC19%
Hong Kong SAR11%
Taiwan11%
Korea8%
Malaysia6%
Indonesia4%
Thailand3%
Singapore3%
Philippines1%
Source Boeing 1999
Germany - Asia Air Cargo Distribution (two-way)Germany - Asia Air Cargo Distribution (two-way)
Korea9%
Taiw an12%
Hong Kong SAR7%
PRC15%Japan
37%
Others20%
Source: Boeing 1999
Italy and Cathay PacificItaly and Cathay Pacific
• Italy is an important market for Cathay Pacific• Hong Kong SAR is Italy’s third largest Asian Air
Freight partner• No Directional Imbalance between Italy and Hong
Kong
Westbound Directionality EuropeWestbound Directionality Europe
47
70 70
83
46
70
42
6660
01020
3040
506070
8090
Westbound %
of total tonnage
Source Boeing 1999
Italy and Cathay PacificItaly and Cathay Pacific
• Italy is an important market for Cathay Pacific• Hong Kong SAR is Italy’s third largest Asian Air
Freight partner• Directional Imbalance between Italy and Hong
Kong is minimal• Market is growing faster than MD capacity
MD Capacity Growth vs Tonnage Growth MD Capacity Growth vs Tonnage Growth (Asia/Europe)(Asia/Europe)
19
2
24
20
12
-4
1417 18
31
12
24
1512
16
10
-5
0
5
10
15
20
25
30
35
% Annual Change
MD Capacity
Cargo Tonnage
Source Boeing 1999
Italy and Cathay PacificItaly and Cathay Pacific
• Italy is an important market for Cathay Pacific• Hong Kong SAR is Italy’s third largest Asian Air
Freight partner• Directional Imbalance between Italy and Hong
Kong is minimal• Market is growing faster than MD capacity• Customers are asking for more capacity into and
out of Italy
• World Wide Network• Freighter Network• European Focus• Italy and Cathay Pacific• The Future