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MGMT 4210 L2 Group 208 Topic: Cathay Pacific - Back to the top Group Members: CHAN Cheuk Yau Charis, CHEUNG Ying Ying, LI Sai Hung, LOO Brandon Dominic, REN Tianxiang Background Founded in 1946, Cathay Pacific Airways (Cathay Pacific) is a flag carrier of HongKong offering air transport services to over 110 destinations around the world. With a visionto be the world’s best airline, they are committed to providing the highest quality services tocustomers. In 2006, in light of rapid growing Mainland China market, cost synergy andincreasingly competitive aviation market, Cathay Pacific acquired Dragon Airline whichwas rebranded as Cathay Dragon to gain additional access to Mainland China. While CathayPacific’s network covers destinations worldwide, Cathay Dragon focuses on providingshort-distance flights across the Asia-Pacific region, especially mainland China providing400 flights a week to mainland China. Cathay Pacific is majority owned by logistics corporation Swire Pacific, whilestate-owned Air China has a 30 percent stake in Cathay. In November 2017, Qatar Airwaysacquired a 9.6 percent stake in Cathay for HK $5.16 billion, making it Cathay’s third-largestshareholder after Swire and Air China. Pressured by low-cost regional rivals, Cathay reported a consecutive annual loss ofHK$1259 million in 2017. Furthermore, Cathay has struggled to uphold the company visionof being the “world’s best airline” and providing “the highest quality service” has seen adecline in the company’s brand image which is essential in the airline industry. Analysis1.SWOTAnalysis Strengths: The strengths of Cathay Pacific include a well established brand name. Founded in1946, Cathay Pacific has a long history of over 70 years. Its brand name is well recognisedin the industry and by customers. Over the years, Cathay Pacific has established a satisfiedcustomer base by delivering exceptional customer service and experiences, leading tosignificant brand loyalty. Furthermore, Cathay Pacific is a member of the Oneworld global airlines alliance.1Cathay Pacific passengers can enjoy benefits such as priority check-in, smoother transfersandmoreflight choices when travelling. Cathay Pacific has also signed codeshareagreements with various carriers, allowing joint operating services and more options forcustomers. New connections under the codeshare agreements provide greater flexibility forcustomers when choosing flight options. Lastly,CathayPacificis based in Hong Kong. With Hong Kong being aninternational business hub, a great number of passengers fly in and out of Hong Kong allyear round. This allows Cathay Pacific to capture more customers and sustain its customerbase. 1Oneworld Member Airlines. Retrieved from
Weakness: The weaknesses of Cathay Pacific include declining service quality. There have beenincreasing complaints on the food quality, in flight entertainment system and flightattendants. A yearly decline in its ranking in Skytrax also indicate poor services. The