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