NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Airlines

Cathay Pacific optimistic over NZ

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
12 Mar, 2013 04:30 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Cathay Pacific's Rupert Hogg says it is code-sharing with Air NZ to grow frequency on the Auckland-Hong Kong route. Photo / Greg Bowker

Cathay Pacific's Rupert Hogg says it is code-sharing with Air NZ to grow frequency on the Auckland-Hong Kong route. Photo / Greg Bowker

Airline undergoing multibillion-dollar refit of its cabins - including premium economy to Auckland.

A top ranking Cathay Pacific executive is upbeat about the airline's New Zealand route and its global strategy despite flying into a rough financial patch in the first half of the year.

The Hong Kong-based airline will announce its full-year result this week after slumping to a HK$935 million ($146 million) interim loss, its biggest since 2003 when the Sars outbreak discouraged flying.

Cathay's director of sales and marketing Rupert Hogg said the airline was sticking to its premium full service model and remained confident passengers would be prepared to pay for it.

"That gives us fares and yields if we can do it well. If you've got a brand and deliver what you say you can, people are discerning and will make a choice - it's not just about price."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Cathay also had the advantage of being seen by mainland Chinese as a prestigious international brand and had crew who spoke their language.

Hogg, in Auckland yesterday, said Cathay was undergoing a multibillion- dollar refit of its cabins - including premium economy on aircraft that fly to New Zealand. It also had 84 new aircraft on order before 2020.

"The cabins become the platform for the service style developed on what our customers tell us they want. It's about personal relationships and treating customers as individuals."

Cathay had a workforce of just under 20,000 and was "recruiting for attitude".

Advertisement
Advertise with NZME.

"If we get that right ... it's very difficult to emulate and we see it as our strong, competitive advantage. We have our style and Singapore Airlines has its style, and we're both fixated by that."

The airline has been flying to New Zealand for the past 30 years and operates up to two flights a day between Auckland and Hong Kong during the summer peak season.

"We're bullish on the long-term future of New Zealand in the long-term travel market."

Hogg said New Zealanders naturally travelled frequently and more were going to China and other parts of northeast Asia.

Discover more

Airlines

Air NZ focuses resources on North American market

07 Nov 04:30 PM
Tourism

Air NZ, Govt in talks about fast track visa for wealthy Chinese

30 Nov 01:04 AM
Airlines

Singapore Airlines Cargo fined $4.1m

21 Dec 04:30 PM
Airlines

Airline role forced Fyfe to shed his shell

21 Dec 04:30 PM

Inbound tourism from China was also booming - Chinese were now the second biggest visiting group behind Australians - and there was no sign of any let-up.

"I see that going almost as fast or as slow as New Zealand wants. There are some infrastructure issues - hotels and language capabilities - but I think New Zealand and Australia will remain top destinations rather than fads."

Cathay could capitalise on the outbound Chinese market through its Dragonair subsidiary, which flies 400 times a week to 21 mainland destinations.

Chinese tourists wanted to go places that were clean, offered scenic beauty and where they felt safe, he said.

The airline and Air New Zealand have just started a strategic agreement where they code-share on the Auckland-Hong Kong route.

The agreement had come into play in January and although it was early days, Hogg said it was working well.

Advertisement
Advertise with NZME.

"What we're trying to do is to develop the route so we can grow frequency quicker than we could alone - we can give, at each end, connectivity."

Cathay has also replaced Air New Zealand on its loss-making Hong Kong-London service, leasing its Heathrow slot which has given it a fifth daily service to London.

Hogg was unable to talk about Cathay's upcoming result, but industry group the International Air Transport Association's current outlook is for an US$8.4 billion ($10.18 billion) industry profit on US$659 billion in revenues during the next year.

It added that airlines were faced with continuing high fuel prices.

Hogg said Cathay, like Air New Zealand, was an ultra long-haul carrier carrying fuel to burn to get to its destinations.

"On our very long-haul routes fuel would be up to 50 per cent of operating cost."

Advertisement
Advertise with NZME.

Jet-fuel prices reached record average levels last year, up on the previous year's average, which had also been a record.

The new generation aircraft promise fuel savings of up to 25 per cent, which would make a big difference to Cathay. It has opted for the yet-to-fly Airbus A350 ahead of Boeing's Dreamliner, in what Hogg said was a close call.

Europe's economic slump had hit its performance as one of the world's biggest cargo carriers, and any slowdown in China hurt revenue. Up to 30 per cent of its revenue came from cargo.

"When China's manufacturing, and the rest of the world is buying, then we're in an extremely good place. For the last year or two, because the world has been fragile, the export volumes out of China have been down and that hits us a bit," he said.

At its half-year results, the airline said it would implement cost-saving measures including reducing frequencies on long-haul routes to North America and Europe, reducing passenger and cargo capacity, accelerating the retirement of fuel-guzzling Boeing 747s, a hiring freeze on ground staff and offering voluntary unpaid leave for cabin crew.

Cathay Pacific

Advertisement
Advertise with NZME.

*Operates a fleet of 140 wide-body aircraft.
*Has 84 aircraft on order for delivery through to 2020.
*Flies to 174 destinations in 41 countries.
*Started flying to NZ in 1983.

Rupert Hogg

*Director of sales and marketing.
*Aged 51.
*Started work 27 years ago for Cathay's major shareholder, Swire Group, and has had stints running a haulage company in Australia and tea plantations and a cut-flower operation in 2008.
*Married to New Zealander Sarah with four children

Save

    Share this article

Latest from Airlines

Airlines

Israel to begin bringing back citizens stranded abroad

18 Jun 01:39 AM
Business|companies

Vietjet orders 100 Airbus A321neo planes

18 Jun 12:26 AM
Premium
Airlines

Pilot group to honour Erebus legacy with safety award

17 Jun 07:00 AM

Jono and Ben brew up a tea-fuelled adventure in Sri Lanka

sponsored
Advertisement
Advertise with NZME.

Latest from Airlines

 Israel to begin bringing back citizens stranded abroad

Israel to begin bringing back citizens stranded abroad

18 Jun 01:39 AM

All of Israel’s commercial aircraft were sent outside of the country.

Vietjet orders 100 Airbus A321neo planes

Vietjet orders 100 Airbus A321neo planes

18 Jun 12:26 AM
Premium
Pilot group to honour Erebus legacy with safety award

Pilot group to honour Erebus legacy with safety award

17 Jun 07:00 AM
Airbus touts plane orders, Boeing focused on Air India crash probe at air show

Airbus touts plane orders, Boeing focused on Air India crash probe at air show

17 Jun 03:23 AM
Help for those helping hardest-hit
sponsored

Help for those helping hardest-hit

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP