Dynamic Aviation Environment

The report analyzes the impact of the protest on Cathy Pacific and Hong Kong International, and evaluates the performance of the organizations for various categories over the past three years. The effectiveness of Cathy Pacific's recovery from the Hong Kong pro-democracy protest is also evaluated.

Dynamic Aviation
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
B Declinational analysis of the term Democracy. ......................................................................3
C Based on given data sets, determine current trends in aviation sector....................................4
D performance of the organisation for many categories over past 3 years ..............................8
E Determine the effectiveness of Cathy pacific recovery from Hong Kong pro-democracy
protest........................................................................................................................................14
CONCLUSION .............................................................................................................................15
REFERNCES:................................................................................................................................17
Books and Journals:..................................................................................................................17

INTRODUCTION
The report aims to provide analysation of anti government protest which has impacted on
various aviation sector of Hong-Kong. This protest has impacted on the mainland China by
enabling some restriction on Cathy pacific. It took place from 2019-2020. the protest claims to
undertake democracy regulation which makes one country, two system. Therefore, Hong-Kong
was enjoying their freedom of rights and independence over decision making for countries
regulation. But the situation is not in favour for which the protest has began. The report is going
to provide an revelation of Hong-song protest to get freedom and be a part fop mainland China.
Aviation industry gets highly affected with all these circumstances and protests which stops their
flight to land and schedule through Hong-Kong. The report has took analysation of the impact
of protest on Cathy pacific and Hong-Kong international. These two aviation organisation
headed through Chinese international airport. Cathy pacific was founded in 1946 which swerve
operations of passengers and cargo services across 190 destinations (Kalakou, and Moura,
2021). The report will analyse how Hong protest had faced decline in stock market for Cathy
pacific which results in lower sales and demand. As the aviation sector has faced uncertainties
and challenges to welcome passenger arrival due to lock-down in protest and many other
restrictions in Hong-Kong.
MAIN BODY
TASK
B Declinational analysis of the term Democracy.
Author Definition Key points
(Rabinovich, Curry, and
Elkaim, 2018).
Democracy is known as living
in a country with utmost
freedom and independent
rights under legal obligations.
A democratic country known
to be developed and flexible.
 Democracy is a
governmental power
assigned to people
about equality and
freedom.
 Obligation of legal
powers and laws to

have authority to live
freely.
(Adjekum, 2017). Democracy is termed as power
and opportunity to decide their
own governing legislator based
on own culture, values and
beliefs which ascertain justice
and self satisfaction.
 It works as power and
rights to every
individual.
 Democracy gives rights
to live freely as per
their own believes and
norms.
( Kelly, and Efthymiou,
2019).
A democratic country believes
in treating fair and promotes
equality for every individual
whether a businessman,
employee, or others to avoid
fear of living on behalf of
others and take necessary
actions for any misconducts.
 Living life peacefully
with all own wishes is
a democratic society.
 There are right to sue
and be sure for any
misconduct act
irrespective of
government provisions.
Democracy is a self independence which makes a person independent and a self decision maker
for loving own life. A person is the ruler of their own living world in which no third part have
right to raise question without their permission. Living democratically consist matter of
individual rights to live a life the way they want. Therefore, choosing own ruler and
government is an opportunity for individual to select best companion whom order people are
ready to take. It defines who will give commands and orders are also in the hand of people in a
democratic country.
C Based on given data sets, determine current trends in aviation sector
Passenger Number Current Trends
70513000 0

Passenger Number Current Trends
72866000 3.3369733241
71543000 -1.8156616254
8835000 -87.6507834449
Aircraft movements Current Trends
412000 0
421000 2.1844660194
428000 1.6627078385
420000 -1.8691588785
161000 -61.6666666667
Cargo Handled Current Trends
4521000 0
4937000 9.201504092
5121000 3.7269596921
4809000 -6.0925600469
4473000 -6.9868995633
Current Trends of Traffic of Cathy Pacific
Passenger Current Trends
35.5
35.2 0.0

Passenger Current Trends
4.6 -8.2
RPKS Current Trends
130626 0
134397 0.03
20079 -0.86
ASKS Current Trends
1555361 0
163744 -0.9
34609 -0.79
Current Trends of Airline Industry Net Profit-
North America
Year Net Profit Current Trends
2018 14.5 0
2019 17.4 0
2020 -45.8 -4

North America
Europe
Year Net Profit Current Trends
2018 9.1 0
2019 6.5 -0.2857142857
2020 -26.9 -5.1384615385
Asia Pacific
Year Net Profit Current Trends
2018 6.1 0
2019 4.9 -0.1967213115
2020 -31.7 -7.4693877551
Middle East
Year Net Profit Current Trends
2018 -1.5 0
2019 -1.5 -0
2020 -7.1 3.7333333333
Latin America
Year Net Profit Current Trends
2018 -0.8 0
2019 -0.7 -0.125
2020 -0.5 -0.2857142857

North America
Africa
Year Net Profit Current Trends
2018 -0.1 0
2019 -0.3 2
2020 -2 5.6666666667
World
Year Net Profit Current Trends
2018 27.3 0
2019 26.4 -0.032967033
2020 -118.5 -5.4886363636
By evaluating the profits and trends into above table, it has identified that, Aviation
sector currently facing challenges and losses as current time become worst for the industry (Li,
and Ryerson, 2019). Airline sector is mainly affected with the situation of Covid-19 that hinders
their growth and opportunity to grow profitability.

D performance of the organisation for many categories over past 3 years
Liquidity Ratios – Liquidity ratio shows how much a company is ready to pay at current time. It
defines the existence of cash present into company which can be conner into cash at any time
period(Seamster, and Redding, 2017). There are mainly three kinds of Liquidity ratio which
determines the capability top pay debts of company, these are Current Ratio, Quick Ratio and
Cash Ratio.

Current Ratio- Current assets are those which last up to one year in a company. So that,
current ratios defines the ability of finances through which company could cover short terms
expenses. Ideal current ratio is 2:1.
Current Ratio can be calculated as – Current assets/current liabilities
By the evolution and calculation of current ratio for Cathy pacific, it shows the result of 1.58 in
2018 whereas, in 2019, the figure was less as compared to past year which was 1.52. therefore, it
shows that the company was better capable in 2018 to pay their debts and overcome with day to
day expenses (Knight, Partridge, and Powrie, 2021). Therefore, Cathy pacific has relevantly
normal condition than 2019 as they have much assets and less liabilities which impact positively
on the growth of aviation in Hong-Kong. whereas, In Hong-Kong international, it faced declines
due to the protest of democracy that lowers down companies current ratio by 0.5 as 2018 was the
year, company was enjoying ratio 2 for paying debts over liabilities. But now, financial crises
occurs and ration goes to 1.05.
Profitability Ratios- this ratio provides an insight about companies profitability by comparing
to past results. As soon as ratio gets higher, companies is on the tract of great profitability by
influencing market and enabling sales as well as stakeholders value. Comparing results gives
better identification by analysing competition in profitability which helps to improvise ratios. In
Context of Cathy Pacific, the year 2018 was profitable for the company which attain net profit
of 2.500 whereas, in 2019, the company has declines its profits and reach to 1.58. this shows
profitability is getting down for the company whereas, Hong Kong international gives
competition to Cathy pacific as their net profit shows 52.2233 in the year 2018 by goes

downwards to 43.153. however, Hong Kong international has much profitability as compared to
Cathy pacific.
Operating Profit-
Operating profit is useful to find out level of profitability for organisation. It deals with the
efficiency of a firm by generating operations expenses and cost in a structured manner to
identify profits over expenses. It helps in find out factors which creates hurdles for achieving
high performance targets. Operating income come out after identify all the expenses held in
operations functions (Cheung, Wong, nd Zhang, 2020). Cathy pacific shows a worst decline on
operation income which is between 20 to 30%. whereas, Hong-Kong international shows an
ideal percentage which is better than Cathy Pacific. Therefore, in order to check profitability
level, these companies need to look at internal factors of operations and try to minimise cost like
salary, wages, cost of production, cost of good sold, inventory etc.

Net Profit -
Net profit is that revenue of the company which is accumulated after finding and adjusting all the
expenses. direct and indirect expenses that subtracted from the exact revenue generated by the
company. There are three types of profit an organisation occurs such as average, high, and low
net profit Which is 10%, 20% and 5% respectively. After deducting all the expenses, the left
over amount considered as net profit which is low at the percent of 5 and high at 15.
Net profit is calculated as – Net profit/Net sales *100
Operating profit is a part of net profit which is low in Cathy pacific as compared top
Hong Kong international (Teshnizi, and Kosari, 2021). Therefore, due to low operating income
Cathy pacific does not enjoy high net profits. Net profit decides the potential and ability of
organisation which is low in case of Cathy pacific as the year 2018-2019 is the decline for the
company. Hong Kong international plays a competitive role in earning net profit margin in 2019
as they consist the factor of democracy whereas, Cathy pacific seems to affected with Chinese
regulation and after the pandemic of Covid-19.
Fixed Asset Turnover Ratio -
Fixed assets turnover ratio usefulness top check efficiency and effectiveness of companies assets
that assure future assistance in terms of investment and usefulness. It defines the ability to mage
companies assets and liabilities in order to ascertain effective business practices. These tow
factors must be well managed to utilise cash in effective manner and does not face losses in
long run. This ration analyse the procurement of fixed assets to generate sales in an annual year.
This defines companies has made investment at right place that gives worth value and
satisfaction of money over assets. This ratio is accumulated by ascertaining total revenue over
fixed assets I.e. Revenue/ Fixed assets
By evaluation of the growth into Cathy pacific and Hong Kong internation, the
performance of both organisation does not differ as both are facing losses and challenges to
utilise their fixed assets effectively. As they are not able to investment in some others and fixed
assets generate great value prepositions so that, it has identified that, there is decline in fixed
assets turnover ratio by comparing it from 2018 to 2020, which is 0.86, 0.26 and 0.31
respectively. This shoes that, Cathy pacific is more effective in order to utilise assets by the
figures of 2018 but lacks in managing them in 2020 due protests and ban on staff participation
though which there were lack of employees who could operate machineries properly. Hong

Kong international does not perform their best practices to mange assets which goes upward in
terms of expenses, deprecation and maintenance. Hence, it will be challenging for Hong Kong
international to compete into market. So for that, there is required to make concentration on
managing fixed assets by checking growth of ratios and take some corrective measure, provide
training to employees for best and optimum utilisation. Also, it has analysed to ascertain sales
and profitability, Fixed assets ratio are beneficial as all the operations are depends upon this
factor
E Determine the effectiveness of Cathy pacific recovery from Hong Kong pro-democracy protest
The protest has certainly put great influence on aviation industry. It become the reason of their
decline in sales, resource utilisation and maintaining assets during the year 2019. this protests
cause a battle for raising demand for country acquisition and demand for rights of freedom and
democracy. A country ans its business wants to acquire freedom , autonomy to carry out business
practices by own preference and without the interference of third party. It reduces morales and
interest to being creative and look for expansion into market where, business do not get rights
over own acts and interest. Therefore, aviation industry mainly in China and Hong Kong faced
many challenges and obstacle to maintain sales targets as people would have not prefer to travel
in such place where protest took place and also, due to many restrictions, people do not come out
of fear. So that, travel and tourism gets stops which results in cancellation of flights, delays and
less arrival of passengers which does not cover their cost of fleet. Hong-kong pre-democracy
protest being the major hurdle for Cathy pacific which needs to be overcome within the time to
regrowth operations and encourage travel and tourism. By the evaluation of financial reports of
Cathy pacific, the company had faced worst condition in 2019 that impacted on image on
profitability of company (Sabatini, Moore, Ramasamy, 2017). To overcome with these crises,
Cathy pacific found some effective ways to overcome with the situation. These precautions are
described below:
 Cathy pacific decides to stop arrival of all the staff and employees who are in ever
support of protest so that, there will be no racism and negative regulates from companies
side.
 The company was affected with the protesters who took the initiative to run campaign
against China. Cathy and pacific does not entertain any events or campaign which impcat
negatively on society such as Pocari sweets, sports drink, television station in which

protestors are engaged in it. Therefore, boycotting these campaigns was an effective way
towards stop protesting.
 Chinese regulation put influence on eliminating cross cultural issues so that, people
would not feel discomfort for travelling into China. In order to maintain positive impact
on company, Cathy and pacific restrict arrival on few tourist by checking all the
security concerns.
 The reason behind Cathy and pacific negative image are people actions performing on
the ambience of airports. They put pamphlets and quotes in favour of protest which create
negative implication on passengers. Therefore, it is necessary to avoid all these scenarios
by proper security and obligation to make the airports.
 In order to stop the violation., Cathy and pacific put all efforts to make people aware
about what is right and what is wrong through rallies and campaigns to secure society
with violation acts. As Cathy and pacific faced many hurdles in terms of financial crises
which require people support and shareholders value, For which the company took help
of police and media and encourage non-violence protest in Hong-Kong.
Therefore, by evaluating all these measures, Cathy and pacific get success in making the society
free from protest which has impacted on re-arrival ODF passengers and scheduling flights for
internation travel. The act of non-violence has created a positive image on Cathy and pacific
across the China which develop positive insights that result in financial condition of company.
CONCLUSION
The report has concluded that aviation industry in Chins is affected thorough pre-
democracy protest. It has identified that, democratic country is much safe and peaceful for
people to live a healthy life. Therefore, the report has identifies all the financial report of
Chosen company by comparing it with other organisation in aviation sector. This shows how
both the firms took different impact in terms of profitability and efficiency. At last, to overcome
with the challenges, the Company come out with some effective measure in order to rebuild
market growth and raise level of sales and turnover.

REFERNCES:
Books and Journals:
Kalakou, S. and Moura, F., 2021. Analyzing passenger behavior in airport terminals based on
activity preferences. Journal of Air Transport Management, 96, p.102110.
Rabinovich, S., Curry, R.E. and Elkaim, G.H., 2018. Toward dynamic monitoring and
suppressing uncertainty in wildfire by multiple unmanned air vehicle system. Journal of
Robotics, 2018.
Adjekum, D.K., 2017. An evaluation of the relationships between collegiate aviation safety
management system initiative, self-efficacy, transformational safety leadership and
safety behavior mediated by safety motivation. International Journal of Aviation,
Aeronautics, and Aerospace, 4(2), p.4.
Kelly, D. and Efthymiou, M., 2019. An analysis of human factors in fifty controlled flight into
terrain aviation accidents from 2007 to 2017. Journal of safety research, 69, pp.155-165.
Li, M.Z. and Ryerson, M.S., 2019. Reviewing the DATAS of aviation research data: Diversity,
availability, tractability, applicability, and sources. Journal of Air Transport
Management, 75, pp.111-130.
Seamster, T.L. and Redding, R.E., 2017. Applied cognitive task analysis in aviation. Routledge.
Cheung, T.K., Wong, C.W. and Zhang, A., 2020. The evolution of aviation network: Global
airport connectivity index 2006–2016. Transportation Research Part E: Logistics and
Transportation Review, 133, p.101826.
Knight, P., Partridge, L. and Powrie, H., 2021, June. GE Aviation Use-case–Apache Spark for
Analytics. In 2021 IEEE International Conference on Prognostics and Health
Management (ICPHM) (pp. 1-5). IEEE.
Teshnizi, M.M. and Kosari, A., 2021, March. Multi-Phase Optimal Path Planning and Conflict
Resolution of Aircraft in the Presence of Moving and Static Obstacles. In 2021 IEEE
International Conference on Automation/XXIV Congress of the Chilean Association of
Automatic Control (ICA-ACCA) (pp. 1-8). IEEE.
Sabatini, R., Moore, T. and Ramasamy, S., 2017. Global navigation satellite systems
performance analysis and augmentation strategies in aviation. Progress in Aerospace
Sciences, 95, pp.45-98.