INFLIGHT: CATHAY PACIFIC AIRWAYS Unlock the full potential...
Inflight Sales Group, which won a five-year contract extension for the Cathay business in 2013, continues to be an instrumental force in developing the airline’s category mix through sourcing the best promotions and offers. This remains important in the
Online pre-order and purchases made through Cathay’s IFE and crew are popular sales channels.
“Our transformation programme will continue. We believe that we are on track to achieve our objective of achieving sustainable long-term performance for our airline businesses.”
John Slosar, Chairman, Cathay Pacific Airways
extensive inflight sales training in- house. Additionally, we invite brands to host workshops in order to share the latest product information and brand history to them. “Together, these give our crew
enhanced knowledge and an increased understanding of our products and make them more effective in their inflight sales duties.” Long-standing concession partner
fast-growing Asia market, which according to IATA forecasts will account for more than half of new passenger growth to 2036 as global air passenger traffic charts a course to just shy of 8bn. China is tipped to overtake
the US as the world’s largest aviation market by 2022, adding 921m new passengers for a total of 1.5bn, adds IATA. Regionally, routes to and from
Asia Pacific are predicted to yield an additional 2.1bn annual passengers by 2036. Its annual recorded growth rate of
+4.6% places it as the third highest behind Africa and the Middle East. Changes in Cathay’s market share
also appear to prime it to capitalise on pax growth, particularly on intra- Asia routes. In November, Qatar Airways
acquired a 9.6% stake in the Hong Kong-based airline, causing tremors to its share price. This followed an announcement
to purchase 378,188,000 shares in Cathay Pacific Airways Limited from Kingboard Chemical Holdings.
The deal, which made Qatar Airways the third largest shareholder in Cathay, next to Swire Pacific Limited (45%) and Air China Limited (29.9%) allows Qatar Airways to tap growth opportunities in the fast-growing Asian aviation market. For Cathay, amplifying inflight sales
via digital services remains a focus; inflight Wi-Fi and entertainment is a staple fixture on its Airbus A350 aircraft, with the former being introduced on its Airbus A330s.
More seamless purchasing Loyalty and reward programmes are also being positioned as more rewarding and competitive. “The entertainment system on
our Airbus 350 fleet is equipped with an inflight sales function, while customers can now also order products before their flight via a refreshed website, meaning our cabin crew will deliver purchases right to the customer’s seat,” says Chau. “Both of these channels have
proved popular among passengers in addition to ordering directly through our crew.” Looking ahead, Slosar is upbeat
on Cathay’s growth prospects for the second half of the year, predicting improved passenger yields despite the strength of the US dollar and global economic uncertainty. “Our transformation programme
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Main: Crew are provided with extensive inflight sales training in-house. Inset: Popular Cathay Pacific promotions and offers have been extended to Cathay Dragon.
42 TRBUSINESS
will continue,” he maintains. “We believe that we are on track to achieve our objective of achieving sustainable long-term performance for our airline businesses. There is still much to do, but I am confident in our future. “Cathay Pacific has been Hong
Kong’s home airline for over seven decades. We will continue to make substantial investments in the development and strengthening of Hong Kong’s position as Asia’s largest international aviation hub.” Chau acknowledges that the
inflight marketplace is becoming more challenging and competitive, but he says enhanced connectivity and the use of big data ring opportunities to deliver a more customer-centric and personalised experience that is helping Cathay keep its competitors at bay. «
OCTOBER 2018
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