Business Analysis: Cathay Pacific Airways Limited Essay

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According to Cathay Pacific Cargo (2012), commence operation of Cathay Pacific Airways Limited is started on 24 September 1946 in Hong Kong. Market structure of Cathay Pacific is oligopoly. Oligopoly is a market structure which only has few sellers provide similar services in a particular country (Mankiw, Goh, Ong, Yen, Cheng, Mustafa & Lee, 2012). Airline services available in Hong Kong are Cathay Pacific, Air Hong Kong, Hong Kong Express Airways, Metrojet, Oasis Hong Kong Airlines, Dragon Airlines, Waterfront Air, Heliservices and Hong Kong Airlines (Cathay Pacific, n.d.). Surging jet-fuel prices had a significant effect on the carrier’s operating results, as fuel is the group’s biggest single cost. Cristopher Pratt, chairman of Cathay…show more content…
According to Cathay Pacific Cargo (2012), commence operation of Cathay Pacific Airways Limited is started on 24 September 1946 in Hong Kong. Market structure of Cathay Pacific is oligopoly. Oligopoly is a market structure which only has few sellers provide similar services in a particular country (Mankiw, Goh, Ong, Yen, Cheng, Mustafa & Lee, 2012). Airline services available in Hong Kong are Cathay Pacific, Air Hong Kong, Hong Kong Express Airways, Metrojet, Oasis Hong Kong Airlines, Dragon Airlines, Waterfront Air, Heliservices and Hong Kong Airlines (Cathay Pacific, n.d.). Surging jet-fuel prices had a significant effect on the carrier’s operating results, as fuel is the group’s biggest single cost. Cristopher Pratt, chairman of Cathay Pacific Airways said Cathay pacific’s core business knock down into the red in the first half of the year because of indefatigably high fuel prices, the global economic fall and weak air cargo demand (Cathay Pacific blames fuel costs, 2012). Managing director of Air Cargo Management Group, Seattle, and the first issue for the air cargo industry is the forever-increasing price of fuel and fuel now symbolizes a greater percentage of total operating costs, Cathay Pacific increases about 39percent (Cathay Pacific 2013 profit, 2014). Operating costs include both fixed cost and variable costs. Fixed costs, such as overhead, remain the same regardless of the number of products produced; variable costs, such as materials, can vary according to how

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