Kingdom 'still top destination'

So far, the group’s two airlines, Cathay Pacific and Dragonair, have not noticed any effect from the demonstrations that have been dragging on for some time in Bangkok and a few other centres. Its load factor on Bangkok-Hong Kong flights has reached 81 per cent and is projected to remain dynamic during the coming festive season, according to Leslie Lu, the firm’s Thailand country manager.
Thailand still shows strong fundamentals as an attractive destination, not only Bangkok, but also provincial destinations such as Chiang Mai and Phuket. Given the growth in business potential, Dragonair flies to those two secondary cities, seven times a week from Hong Kong to Chiang Mai and 13 times a week to Phuket.
The two airlines are committed to playing a rising role in Thailand by boosting flight frequencies and adding new routes in the long term. Cathay Pacific has flown to Thailand for 67 years.
Since June, Cathay Pacific has been operating between Bangkok and Hong Kong with 52-63 flights a week, up from 42 per week previously.
The number of Thai travellers to Hong Kong is on the rise too. In the January-to-September period, their numbers grew by 8 per cent year on year.
Lu said a major challenge for the airline was fuel cost, accounting for about 42 per cent of the total. The firm has implemented fuel hedging to minimise its risk. Another challenge is competition, which is becoming more intense because of the growing number of low-cost carriers in Thailand, now including Lion Air and AirAsia X.
However, Lu said there were still a large number of passengers who wanted to fly with full-service airlines like Cathay because of the added convenience and better service. The company’s competitive edge over budget airlines and other rivals also includes good connectivity, products and services, and affordable fares. 
For example, 12 airlines fly the Bangkok-Hong Kong route, for a total of 174 flights a week, but Cathay Pacific controls up to 63 of these. This shows that price is not the only factor when passengers choose which airline they want to fly with, Lu said.
At present, Cathay Pacific operates from Hong Kong to 117 destinations in 40 nations worldwide, while Dragonair has 45 destinations in 14 nations in Asia, mainly in mainland China with 20 cities.
Dragonair is also a premium-service airline and an independent firm in which Cathay Pacific holds a 100-per-cent stake. Its aims at capturing the big market in mainland China. Overall, the two airlines work together to create business synergy and strengthen network connections.
New legislation in China aimed at cracking down on unethical travel agents who offer low-price services has not had any impact on the number of passengers flying with the group’s airlines. So far, passenger traffic is still good, the company says.
Cathay Pacific posted a jump in net profit of 102 per cent to 24 million Hong Kong dollars (Bt98 million) in the first half of this year. It was confident that it would be more active in the second half, even as the competition is tough during the period. Cathay Pacific has 137 aircraft in its fleet and has placed an order of 74 more. It is a member of the Oneworld Alliance. Dragonair has 39 aircraft in its fleet.