Cathay Pacific 2014 Annual Report Download - page 23

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ANNUAL REPORT 2014
21Review of Operations Cargo Services Loyalty and Reward Programme
• In March 2014, we introduced a twice-weekly service to
Columbus in the United States, which moved to three
flights per week in June 2014. We tagged Mexico City
onto our Guadalajara cargo service in March 2014 and
increased this service to five flights per week in October
2014. We also introduced a twice-weekly freighter
service to Calgary, our third freighter destination in
Canada, in October 2014.
• We increased the frequency of other cargo services to
North America in 2014. Chicago moved from seven to
nine flights a week in April 2014 and then increased to 11
flights a week in September 2014. Los Angeles moved
from six to 10 flights a week in April 2014.
• In 2013, we agreed to sell our six Boeing 747-400F
freighters back to The Boeing Company. One of them
was delivered in November 2014. Two of the remaining
freighters are parked and all five of them will have left the
fleet by the end of 2016. We now operate 13 fuel-
efficient Boeing 747-8F freighters and have one more
scheduled for delivery in 2016.
• 2014 was the first full year of operation of our cargo
terminal at Hong Kong International Airport. It made our
cargo operations more efficient. It handled 1.45 million
tonnes of cargo in 2014. It handles cargo for Cathay
Pacific, Dragonair, Air Hong Kong and four other airlines.
• The investments we have made in new freighters and a
new cargo terminal and the strengthening of our cargo
network demonstrate our confidence in the long-term
prospects of our cargo business and Hong Kong’s future
as an international air cargo hub.
Loyalty and reward programme
The Marco Polo Club
• The Marco Polo Club is an exclusive loyalty programme
which offers privileges to the frequent flyers of
Cathay Pacific and Dragonair. It has more than one
million members.
• Members of The Marco Polo Club contribute to almost a
quarter of the revenues of Cathay Pacific and Dragonair
and fly on one-sixth of their flights.
Asia Miles
• Asia Miles, is a leading Asian reward programme. It has
more than seven million members and over 500 partners,
including 25 airlines and more than 300 restaurants, plus
hotels and retail shops.
• There was a 16% increase in redemptions by Asia Miles
members on Cathay Pacific and Dragonair flights
in 2014.
• Marco Polo Club members are also members of
Asia Miles.
• Asia Miles has been recognised as the Best Frequent
Flyer Programme by Business Traveller Asia-Pacific for
10 consecutive years.
Antitrust proceedings
Cathay Pacific remains the subject of antitrust proceedings
in various jurisdictions. The outcomes are subject to
uncertainties. Cathay Pacific is not in a position to assess
the full potential liabilities but makes provisions based on
relevant facts and circumstances in line with accounting
policy 20 set out on page 101.