The Project aims to study the Cathay Pacific Airways Limited (CX) in tourism and hospitality industry, and the report will critically analysis their strategy and development through the Cathay Pacific’s background information, the company culture, resources, capabilities and competitive advantage, and different strategies. Final, to sum up the company's strategy will give its competitive advantage over the next five years.
2 Background of Cathay Pacific
2.1 Description of Cathay Pacific
According to Cathay Pacific Airways Ltd, Annual Report (2016), Cathay Pacific Airways is a Hong Kong-registered and Hong Kong-based international carrier that provides regular passenger and cargo services to a total of 181 destinations in 43 countries and territories.
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The operating capacity of other airlines has increased significantly, with more direct flights between mainland China and international destinations. Coupled with the participation of low-cost airlines, the competition in the aviation industry is exacerbated. Overcapacity in the market is a particularly competitive issue for our freight business.
2.2 Global coverage and plan expansion
In order to be the best airline in the world, Cathay Pacific has flights to many countries in the world, including Africa, the Americas, Europe, Asia Pacific and the Middle East.
Moreover, the Group is pursuing a business transformation program to make Cathay Pacific a better airline and a more robust business, benefiting customers with better productivity.
The expansion plans include expanding the route network, increasing frequency of the most popular routes and adding more fuel-efficient aircraft to meet the challenges facing the aviation industry. Such as Cathay Pacific have introduced new services to Tel Aviv, Barcelona and Christchurch in 2017. In addition, Cathay Pacific has increased the frequency of service to London Gatwick, Manchester, Madrid, Paris, Boston, Toronto, San-Francisco, Los Angeles, Hanoi, Ho Chi Minh City, Adelaide, Brisbane and Cairns, which are the most famous city for customers. And also Cathay Pacific took delivery of 11 Airbus A350-900 aircraft and already possesses 17 aircraft of this type. This will enhance the quality of service and help Cathay Pacific to increase its productivity and reduce costs (Cathay Pacific Airways Limited,
The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or
The airline industry is greatly influenced by the the travel and tourism trends across the globe. The World Travel and Tourism Board states that the the level of tourism is likely to grow even as the years progress. The growth in the level of tourism is expected to grow at a level of 4.5 per cent annually. This is expected to continue upto 2017. Thus the organization should fully prepare it self and take over the tourism market.
Flying Cathay first class to Asia is by far one of the greatest deals on the market. The first class cabins, service, and convenience surpass any other route, and you receive the most for your miles.
The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for
Cathay Pacific (CP) is an interesting case because it is an example of a company attempting to work in isolation, vertically integrated and developing all their needs themselves. Truth is however; in today’s interconnected economy a company working independently simply can not compete. The world has become too dynamic and contains too many other companies developing better solutions to rely solely on one’s internal organization. Cathay eventually recognized this fact and turned to outsourcing to focus on its core competency, customer service and transportation.
One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.
Defining themselves as “international airlines” capable of providing for passengers of any language or race appears to be another important point of parity. In this case, we can also see that Cathay Pacific finds it necessary to highlight this specific point-of-parity in several of their statements as they are based in a country that speaks in a different native language from most of the world. Similar attempts have been made by British Airways, which is based in an English speaking country but flies to all 6 permanently inhabited
The project requires the student to carry out a research, analysis and discussion on how a Singapore listed company can access to the country’s financial system and how it benefits the company in achieving its business objective. The research will cover the various types of financial services offered by financial intermediaries whom the corporation can access to.
To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel
Cathay Pacific Airways Limited, which is managed by the Swire Group, is the largest airline and flag carrier of Hong Kong. The company with over 14,000 staff worldwide now, was founded by 1946. It based at Hong Kong International Airport, and its operations include scheduled passenger and cargo services to over 120 places around the world.
There are over 5000 airlines with ICAO codes. The world's largest airline by fleet size and passengers carried is American Airlines, operating from the United States.
Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.
Cathay Pacific might present a complementary budget airlines subsidiary or alliance which offers essential carrier services with a lower fare. It will broaden its market share through an affordable price. This option extends its proportion of the entire industrial sales through minimum investments with maximum profitability. But it might be blemished likewise because the brand of C.P. was not initiated for budget traveling.
Cathay Pacific Airways Ltd. (C.P.) was established as early as 1950’s in Hong Kong, and fully dedicated to serve tourists from all around the globe to make the Hong Kong-established brand ultimately converted a transnational aviation carrier known as proficiency and security, encompassing an immense amount of investment of 148 aircraft. In addition to the investment on procuring aircraft, Cathay Pacific initiated accomplished match department such as ground-handling subsidiaries and catering departments, which have had headquartered nearby Hong Kong International airport. At the present time, Cathay Pacific still remains significantly dedicating on its domestic market Hong Kong, and signed new contracts for
Backed by the Hainan Airlines of the China, Yunnan Airlines was founded in 2004 as one of the most cost-effective domestic airline operating from its hub in Kunming, in the province of Yunnan. The limited route license added to the airline’s competitive advantage and maintained its monopoly within the region. Its major competitors include Air China and China Southern Airlines among others. As Yunnan is one of the most attractive tourist destinations of Southern China, the airline attracted a lot of customers and started producing profits within just three years of its inception.