Return on Capital Employed is the amount of net profit divided by the asset employed in the business. (ROCE)
The ROCE had a very small decrease over the two years.
Market Capitalisation
Tracking the share price over time is a good indicator of success. Market capitalisation is the amount of money needed to buy every share at the current market price. Market capitalisation can be used to show which company is the biggest in terms of market value.
Sales, Turnover or total Revenue can be perhaps considered a measure of the size of firms. It could be argued that a successful firm will sell more then its rivals.
When comparing firms in the same industry a measure of market share is a useful measure of success
Brand Recognition
Cathay Pacific Airways is a well know brand all round Asia or even the whole world. It is definitely well know with in the industry.
Cathay Pacific Airways had been voted Airline of the Year in the Skytrax passenger poll twice in the past three years – a remarkable achievement by any measure. In this year’s poll, they’ve also won the "Best Airline Asia," "Best First Class" and "Best First and Business Class Lounges" awards.
Cathay Pacific Airways has once again been named Airline of the Year - this time by Air Transport World, who has been bestowing this honour for over 30 years.
Cathay Pacific Airways had got the recognitions by the airline industry world.
What do customers think of Cathay Pacific Airways
Overall, I have questioned 3 Cathay Pacific Airways passenger through questionnaires from the airline itself.
The results of part of the questionnaires are below:
Passenger 1 - Leisure passenger (Business Class)
Rates of these aspects of this airline’s “Onboard” service.
Rates of these aspects of this airline’s “Airport / Ground” service.
Passenger 2 - Business Passenger (First Class)
Rates of these aspects of this airline’s “Onboard” service.
Rates of these aspects of this airline’s “Airport / Ground” service.
Passenger 3 - Leisure Passenger (Economy Class)
Rates of these aspects of this airline’s “Onboard” service.
Rates of these aspects of this airline’s “Airport / Ground” service.
On the questionnaires above, it general show excellent as an answer. This shows that most of the passengers that had traveled with Cathay Pacific are more than happy with the services that were provided.
What does the staff think of Cathay Pacific Airways?
I have interviewed a Pilot of Cathay Pacific Airways.
Pilot’s interview
Q: Why do you think the customer choose your airline?
A: Cathay Pacific is one of the safest airlines on the world with excellence a: A: A: quality of in-flight entertainment and trust to our passengers worldwide.
Q: Why do you think Cathay Pacific is improving throughout the last 5 years?
A: The demands on both leisure and business travels are increasing rapidly A: and our service standard remains high.
Q: What way can the airline improves?
A: Over booked tickets is a big issue in the airline. Market prediction can be is A: improved (esp. hot seasons)
Q: Is Cathay Pacific Airways successful?
A: It is very successful. This is because CX isn’t a government funded is a; a; a; A: company like United Airlines and American Airlines. It went through tough a’ A: times such as SARS and it remains high standard of service.
Overall, the service of Cathay Pacific is at high standard, which is a reason why people will fly with Cathay Pacific.
Conclusion
Cathay Pacific Airways is a successful company after all. In terms of all measure of success, it is at a high standard and continues making progress.
- Cathay Pacific’s profit had remained at a stable level, and the market capitalisation is also huge compare to other Asian airline industry.
- Cathay Pacific had an excellent recognition in the world wide airline industry.
- Passenger who had traveled with Cathay Pacific is also pleased with the services provided by Cathay Pacific in general.
On the other hand, Cathay Pacific Airways can expand the size of the fleet, so that more people around the world can use the service provided by the Cathay Pacific Airways. This could improve the recognition of the company and can increase the profit considerably.
Cathay Pacific Airways in 2006 is going to expand their fleet up to 105. The first 16 Boeing 777-300ER aircraft will be delivered between 2007-2010; the other 3 Airbuses A330-313X will be delivered in 2008.CX is also going to introduce new services into Shanghai and Xiamen. The new route from Hong Kong to Manchester via Moscow will be opened in 2006. Boeing Company has already gave Cathay Pacific the right to order a further 20 B777-300ER. This shows that the company’s movement is going as I predicted they would do.
Bibliography
Skytax -
Airline World -
Cathay Pacific Airways Home Site –
Cathay Pacific 2005 interim report was found in the Cathay Pacific Airways Home site as shown above.