The Hindu Business Line : `India is potentially a huge market'

`For Cathay Pacific, India is a growing market and there is scope for a significantly expanded air services agreement.' MR RUPERT BRAY, COUNTRY MANAGER, CATHAY PACIFIC

"Outside our home market — China — India is Cathay Pacific Airways' top priority and we intend to focus our efforts on expanding our presence in this dynamic and fast growing market," says Mr Rupert Bray, Country Manager, India, Nepal and Bangladesh, Cathay Pacific Airways Ltd. The Hong Kong-based airline is more than doubling its cargo capacity out of India with direct flights to Mumbai and Chennai. In an interview with Business Line, he said: "Cathay Pacific is very bullish about the Indian cargo market and intends to continue growing rapidly." The airline plans additional frequencies to the Delhi service and also route all returning Europe to Hong Kong freighters via India.

Excerpts from the interview:

How many passenger services does Cathay Pacific currently operate into India? Are these turnaround flights? Has there been growth in the traffic during the last one year?

Cathay Pacific currently flies four times a week from Delhi to Hong Kong, and four times a week from Mumbai to Hong Kong, via Bangkok. We also operate four times a week between Mumbai and Dubai. Cathay Pacific has witnessed 25 per cent growth from India with passenger sales drawing over Rs 300 crore in 2005.

Has the airline optimally used its bilateral rights? Are bilateral negotiations imminent? If so, which are the points that Cathay would like to operate to?

Cathay Pacific uses its full entitlement under the current bilateral air services agreement. India is potentially a huge market and it is one of growing importance for Cathay Pacific. We believe there is scope for a significantly expanded air services agreement.

Over the last year, there has been a 35 per cent increase in traffic between India and Hong Kong. That said, the route continues to be under-served.

Because traffic rights are the preserve of government, which cities we plan to fly to will depend on the outcome of the talks but, clearly, opportunities do exist in the South.

A large percentage of passengers from India on Cathay Pacific will be transiting Hong Kong to either the US or mainland China. What are the advantages of Hong Kong airport as a ?

Hong Kong is the gateway to China, and Hong Kong International Airport is acknowledged as one of the world's best airports. As China's premier aviation hub, Hong Kong has more connections into China than any other city.

From India to the US/Canada, there is no faster way to travel than with Cathay Pacific Airways via Hong Kong. With our one-world partner, American Airlines, we offer a further 29 destinations in the US.

How many freighters does Cathay operate into India and with this increase in cargo services, what will be the capacity out of India?

Currently, Cathay Pacific's freighter services to India include a three-times-a-week flight to Mumbai, which continues to Dubai and Paris and then returns to Hong Kong via Dubai.

The three-times-a-week Delhi service continues to London and then heads back to Hong Kong via Milan. Cathay Pacific will start a twice-weekly service Hong Kong-Mumbai-Chennai-Hong Kong from June 2, using a B747-200 freighter.

How much has Cathay invested in new equipment, and how many new routes have been planned?

Cathay Pacific has placed its biggest ever order for new aircraft.

The airline made commitments for 16 Boeing 777-300ER long-range aircraft and three Airbus 330-300s, which will be delivered between 2007 and 2010, and has purchase rights for a further 20 B777-300ERs.

Nine aircraft entered service in 2005, including the world's first B747-400BCF, or Boeing Converted Freighter, for which the airline has firm orders for five more and options for a further six.

One new B747-400F freighter, one B777-300, three A330-300s and three refitted second-hand B747-400 passenger aircraft joined the fleet.

Cathay Pacific's fleet will total 101 aircraft by this September.