Cathay Pacific ends 747 flights, its future defined not by 777s/A350s but by diversifying

[flee 5]

For 37 years the Boeing 747 brought Cathay Pacific to the world. As it did for so many operators, the 747 transformed Cathay into a global airline. Cathay's final passenger 747 flight was on 01-Oct-2016. The occasion is filled with sentiment and the usual remarks of being the end of an era; the aircraft of course is iconic, and Cathay, which turned 70 in Sep-2016, has known the 747 for longer than it has not.

Yet the 747 era at Cathay ended long ago. The 747 gave Cathay a global footprint, but this is true for most current and former 747 operators. Cathay's position today against competitors is defined not by network reach but rather – depth. Mainland Chinese airlines, some of Cathay's closest competitors, know they have the local market and lower costs but acknowledge the one-stop challenge Cathay brings with hyperfrequency and a stronger product/brand.

That depth and domination, especially in the key North American market, was achieved with the 777-300ER. Cathay operates 53 777-300ERs – more than twice the 24 747-400s the airline had at its peak. Although A350s are arriving, Cathay's next evolution is defined not by aircraft and flying but rather by bringing new non-flying businesses into the group. For aviation this is seen as a partial surrender to competition. For the company it is a graduation to consistent and higher profits. As with the 747, it is time to move on and pursue a more productive future.

The 747 overstayed its welcome with Cathay

Cathay Pacific was caught on its re-fleeting strategy and the 747-400 overstayed its welcome. Cathay ended 2011 with 21 747-400s, whereas Singapore Airlines retired its 747-400 passenger fleet in early 2012, and Air China – Cathay's equity partner – started retiring 747-400s faster (but still has -400s).

In 2012 Cathay decided to accelerate 747 and A340-300 retirement as fuel prices increased and premium demand weakened. Cathay operated its last regular long haul 747-400 passenger flight in Aug-2014, and ended the year with only seven passenger 747-400s. The type has since been used on regional flying, where fuel efficiency is not as pronounced as on long haul and ultra-long haul. Accelerating 747-400 retirement resulted in Cathay cutting frequencies so it could spread newer aircraft over a wider part of the network.

Cathay is now regaining the initiative by being an early customer for the A350-1000 and 777X.

The 777-300ER has a bigger legacy than the 747 at Cathay

See:http://centreforaviation.com/analysis/cathay-pacific-ends-747-flights-its-future-defined-not-by-777sa350s-but-by-diversifying-304221

[S V Choong 4]

Air China has only 747-400 left, They have retired them too just a few days ago.

 

Even Chinese Presidential ride, B-2472, a B747-4J6 will switch to B-2479, a B747-89L.

 

It has been mentioned that B-2479 is under interior fit-out at the moment to eventually replace B-2472.

Edited October 3, 2016 by S V Choong