Management and Operations Report: Cathay Pacific Airways Analysis

This report provides an analysis of Cathay Pacific Airways Limited, focusing on its management and operational functions within the aviation industry. The report covers several key areas, including fleet planning, safety enforcement, revenue management, marketing strategies, and employee hiring and training. It examines how the airline manages its fleet, ensuring cost-effectiveness and technological advancements, while also emphasizing safety and security protocols. The report details the importance of revenue management in driving strategic differentiators and highlights the collaboration required between operations and marketing teams for effective strategy design. Additionally, it discusses employee training and the significance of external environmental factors on operations. The conclusion emphasizes the company's effective execution of operational functions, contributing to its improved market image. This report is submitted to Desklib, a platform providing AI-based study tools for students.

Slide 1

Slide 2
Cathay Pacific Airways Limited is a flagship carrier of Hong Kong. The fleet size of the
company is 153 fleets which is massive for any airlines. The airlines provide services to the
passengers and provide cargo services in more than 60 countries making it world’s 10th
largest airline. It provides employment to almost 27000 employees.

Slide 3
The company performs several types of operations in aviation sector such as:
• Security
• Safety
• Civil Aviation
• Travel and Tourism Services
• Environmental Management
• Cargo Operations
• Quality Control
• Human Performance
• Ground Operations
• All these operations are performed simultaneously along with management of fleet and
its operations.
Image Source: https://www.researchgate.net/figure/Aviation-Industry-Career-Segments-
Source-IATA-Training-and-Development-Institute-IATA_fig1_264500232

Slide 4
There are several key operational functions that are performed by Cathay Pacific Airways
Limited. These are as follows:
• Fleet planning
• Safety enforcement
• Revenue management
• Marketing
• Employee hiring and training

Slide 5
Fleet Planning- The Company plans its fleet keeping in mind the cost effectiveness and
technological factors in mind. Cost effectiveness is attained by ensuring that costs of
maintenance reduce by 10% every year. Furthermore, the company focuses on purchasing
technologically advanced aircrafts. The managers, thus, are required to ensure that the
aircrafts are purchased at reasonable costs and they consider the commonality of fleets for
the same. In addition to this, managers are required to collaborate with the technical team
so that the purchases are made based on technology and they are safe from security
viewpoint.

Slide 6
Safety Enforcement- The Company must ensure that it has some methods and techniques
built to ensure the safety and security of the passengers, aircrafts as well as crew members.
The standards that have been framed such as Standards and Recommended Practices
(SARPs) for international aviation security are required to be followed. Other compliances
such as Part 17 of Civil Aviation Regulations 2015 must be followed. Apart from this, there
are some responsibilities with managers as well such as ensuring corporate safety and
security policies and compliance with quality and regulatory standards. He has to make sure
that absolute operational integrity is achieved.

Slide 7
Revenue Management- Airline revenue management is essential because it validates three
strategic differentiators – product, schedule and pricing. These are essential for determining
the revenues earned by a company for a given period of time. Revenue management has
some business priorities namely, customer selection, market share, branding, cash flow and
risk tolerance. In order to manage revenue based operations, operations manager has to
coordinate with financial management team. This will ensure appropriate management of
quality and safety standards which will help to maintain customer and market share.

Slide 8
Marketing- For the purpose of marketing, the first task focused upon by the airlines is
determination of target market segments. This helps in doing focus based marketing and the
company is able to concentrate upon only those segments which generate maximum
revenues for the company. The airline must also ensure that pricing structure is designed
strategically, for example revenue maximization works well for a desperate customer.
Designing strategies to increase the market share would help in increasing its customer base
and areas where they operate. Operations manager must try and collaborate with marketing
team so as to design the above strategies effectively and efficiently. Regular monitoring of
marketing initiatives also needs to be done.

Slide 9
Employee hiring and training- Providing them effective training and development sessions
before joining, would ensure that airport personnel cater to the needs of customers
effectively. Conducting security checks on the newly employed staff must also be done from
security point of view. All these functions must be carried on by operations manager in
complete synchronization with HR team.

Slide 10
The major operations in aviation industry generally involve the following:
• Surveillance
• Enforcement
• Exit Control
• Entry Control
• Development of rules and standards.
Image Source: https://www.oag.govt.nz/2010/caa/part2.htm

Slide 11
The key operational approach to management of operations and their value is explained
through the following points:
Fleet planning- It has to be done considering factors such as security, technical capabilities
and lower maintenance costs. These considerations will ensure that operational costs reduce
and profits increase.
Safety enforcements- These make operations of the organization safer and help in
preventing injuries.

Slide 12
Revenue management helps managing the cash flows and market share which helps the
company to manage the financial resources