57

Cathay Pacific’s Success Story:

How did Cathay Pacific Maintain its Dominant Position
and Acquire its Competitors?

Jiapei Liu, Yinglin Gu, Hazel Lee, & Raymond Li1

Cathay Pacific is the largest airline in Hong Kong and has maintained its
dominant position for decades. As part of its competitive strategy, Cathay Pacific
acquired several of its competitors. This study examines the impact of
acquisitions and the relationship between each acquisition and Cathay Pacific’s
success. The success factors and challenges subsequent to the acquisitions are
critically analyzed and discussed, and implications for other companies are
presented. The results show that acquisitions provide positive outcomes which
contribute towards success factors; however, they are not without the
unavoidable risks of entering a new market after the acquisition.

Keywords: Acquisitions, Asian, Management, Airline industry, Asian Airline

As the largest airline in Hong Kong nowadays, Cathay Pacific has experienced
twists and turns throughout its seventy years of development. After moving from
Shanghai to Hong Kong in 1946, Cathay Pacific became the first airline which
provided civil aviation service in Hong Kong. Between 1958 and 2006, Cathay
Pacific performed three acquisitions as part of its competitive strategy; Hong Kong
Airways (1958), Air Hong Kong (1994) and Dragon Air (2006).
Due to the turbulent environment, competition amongst airlines has become
increasingly intense; both giant airline alliances and small- to medium-sized
airlines suffer from the challenging external environment. According to Skytrax
World’s Top 10 Airlines of 2018, Cathay Pacific is in sixth place among the
world’s top airlines. In the shrinking industry, Cathay Pacific utilized an

1
Jiapei Liu is a student, School of Accounting and Finance, Hong Kong Polytechnic University
(email: jiapei.liu@connect.polyu.hk)
Yinglin Gu is a student, School of Accounting and Finance, Hong Kong Polytechnic University
(email: 16096214d@connect.polyu.hk)
Hazel Lee (Corresponding Author) is Head Coach of Business Competitions, Faculty of Business,
Hong Kong Polytechnic University (email: hazelsy.lee@polyu.edu.hk)
Raymond Li is Faculty Coordinator for Student Development, Faculty of Business, Hong Kong
Polytechnic University (email: ray.li@polyu.edu.hk).

ACADEMY OF ASIAN BUSINESS REVIEW ISSN: 2384-3454 / 18 / $10.00

Vol. 4, No. 2. DECEMBER 2018 ⓒ Academy of Asian Business 2018
58 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

acquisition strategy to achieve competitiveness, dominate amongst major

competitors and maintain this position in the Hong Kong airlines industry. By
exploring the process of Cathay Pacific’s strategic development, one can analyze
how Cathay Pacific developed from a foreign joint-venture to a mature global
airline, gaining leadership in a market of growing competitors. Its tremendous
success also has great reference value for other companies, particularly in the
airline industry. The patterns behind Cathay Pacific’s business operation may
provide insight for other airlines to sustain their competitive advantage and further
expand their services in the aviation industry.
This study will examine the strategic development of Cathay Pacific in four
main sections. In Section 2, the company background will be presented. Then, the
major events that are pivotal points will be highlighted and discussed to
demonstrate the factors that contribute towards the success of the company in the
third and fourth sections. Sections 5, 6 and 7 analyze the current intense
competition in the airline industry and concludes with implications and suggestions
to Cathay Pacific and other airlines.

Cathay Pacific - A Globally Reputed Airline

Cathay Pacific Limited, traded as SEHK: 293, is a flag carrier of Hong Kong:
the largest airline in Hong Kong and one of the major airlines in the Asia Pacific
region. With its head office and main hub located at Hong Kong International
Airport, it has two subsidiaries: Air Hong Kong and Cathay Dragon. Cathay Pacific
is an award-winning and globally reputed airline, and consistently ranks as among
the best airlines in the world. Most recently, it ranked number six among top 100
Airlines in 2018 (Skytrax).
Cathay Pacific currently provides services to 206 destinations in 52 countries
worldwide. In their 2017 annual report, Cathay Pacific declared that their revenue
in 2017 was 97,284 million HK dollars, with an annual growth of 4.9%. Passenger
services is the main revenue source of the company, accounting for 68% of the
revenue, with cargo services contributing 25%, and catering, recoveries and other
services contributing 7%. Figure 1 shows the revenue of leading airline groups in
the Asia Pacific; the income of Cathay Pacific was 11.95 billion US dollars, which
was not the highest among all the competitors. Here, the geographical scope could
be a contributing factor as Cathay Pacific is limited by its operations being based
only in Hong Kong, which is a relatively small region compared to other
competitors.
 Cathay Pacific’s Success Story 59

Figure 1
Leading airline groups in Asia Pacific.

*Source: Statista, retrieved from https://www.statista.com/statistics/ 738512/biggest-airline-groups-

based-on-revenue-in-asia-pacific on 26/9/2018

The Development of Cathay Pacific

and the Turning Points

Table 1 summarizes the major events in the history of Cathay Pacific. Founded
in 1946, Cathay Pacific was the first airline company to provide civil aviation
services in Hong Kong, commencing from that year. The company developed and
expanded its business over the past several decades, including two significant
acquisitions of its competitors which greatly contributed towards Cathay Pacific’s
dominant position in the industry. These events were the turning points for Cathay
Pacific to reach its current market position and achieve a sustainable competitive
advantage. The first acquisition was in 1959, whereby Cathay Pacific took over
Hong Kong Airways. Second, Cathay Pacific acquired a majority stake in Air
Hong Kong for their cargo airline operations. The third is the acquisition of
60 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

Dragonair in 2006. This article focuses on the first and third acquisitions that
affected its scheduled flight services. Since the first acquisition took place about 60
years ago, available information is very limited, thus only a short brief discussion
will be presented. The following discussion will therefore focus mainly on the
acquisition of Dragonair.

Table 1
Significant Events of Cathay Pacific
1946 Founded as the first airline in Hong Kong
1948 Registered as Cathay Pacific Ltd in October
1959 Acquired the main rival in Hong Kong-- Hong Kong Airways
1979 Acquired the first Boeing 747, started to fly to London, opened
additional routes to Europe and North America in the following
decade
1986 Listed in the Main Board of the Hong Kong Stock Exchange
1990 Acquired a significant shareholding in Dragonair
1994 Acquired 75% stake in cargo airline Air Hong Kong
1999 Became a founding member of the Oneworld Alliance
2006 Acquired Dragonair
2017 Signed a memorandum of understanding for 32 Airbus
A321neo aircraft to modernize and expand its single-aisle fleet
from 2020

Before 1959, the government divided the Hong Kong airspace and flight routes
into two parts; the southern flight paths of Hong Kong were operated by Cathay
Pacific, and the northern paths were operated by Hong Kong Airways, the only
local rival of Cathay Pacific. In 1958, Cathay Pacific purchased Hong Kong
Airways, allowing Cathay Pacific to take over routes to Tokyo, Taipei, Seoul and
so on. Consequently, a new market was obtained. Additional benefits were gained
by this acquisition as Hong Kong Airways possessed experience in North-East
Asian routes. By maintaining this technical know-how and positioning, Cathay
Pacific became the dominant airline in Hong Kong, taking over the North-East
Asian market. Between 1962 and 1967, Cathay Pacific subsequently achieved
double-digit growth (Cathay Pacific, 2018). This acquisition provided a strong
foundation for Cathay Pacific to expand their international airline network in the
early 80s.
Another pivotal event was the acquisition of Dragonair. Dragonair was founded
in 1985 by a group of Chinese-funded businessmen in Hong Kong, who tried to
 Cathay Pacific’s Success Story 61

challenge Cathay Pacific’s monopoly in Hong Kong’s aviation industry. By the

mid-1990s, the development of Dragonair even exceeded that of Cathay Pacific's.
Many analysts believed that with the further development of mainland China,
Dragonair would eventually surpass Cathay Pacific at that time (Yang, 2012). In
that era, it was widely believed that Hong Kong was the gateway to the mainland
China; many passengers such as businessmen travelled between Hong Kong and
mainland China, which led to strong passenger demand. Hence, the aviation market
in mainland China was significantly critical for Cathay Pacific to obtain.
‘Freedoms of the Air’ are a set of commercial aviation rights permitting a
country's airlines to enter other countries (ICAO, 2018). The aviation rights should
be contracted by all of the countries related to the routes. Before 2006, according to
the aviation rights agreed upon by Civil Aviation Administration of China, Cathay
Pacific was only permitted to operate two routes (Beijing and Xiamen) to China,
compared to the 16 routes by Dragonair (Chai, 2006). The mainland market was
significant for Cathay Pacific; simply considering passengers arriving at and
departing from Shanghai, the average number of international visitors entering
Shanghai via Hong Kong is merely about 1 million per year, whilst the transfers
from other Asian airports (Singapore, Bangkok, Tokyo, Seoul, etc.) at Shanghai
amounted to 6 million or more per year (China Aviation Daily, 2006). The routes
between Shanghai and Hong Kong were attractive for international passengers as it
is convenient and the price is lower compared to other Asian airports. However,
Cathay Pacific did not have the aviation rights to operate routes between Shanghai
and Hong Kong. If Cathay Pacific could obtain the direct flight route between
Shanghai and Hong Kong, then the number of international passengers could
increase by more than 300,000 per year. Moreover, there was a significant number
of business people travelling between Hong Kong and Shanghai who had a
stronger spending power. Therefore, it was clear that increasing routes between
Hong Kong and mainland China would enhance Cathay Pacific's international
competitiveness.
On the other hand, since Dragonair had the right to use the direct routes between
Shanghai and Hong Kong, it was undeniable that Dragonair had more advantages
of the mainland market than Cathay Pacific. At the same time, however,
Dragonair’s businesses were under pressure by the Hong Kong government and its
operations were limited by a set of policies and regulations issued after 1985,
which led to a tough situation for Dragonair. Therefore, during this time, the
opportunity to acquire became attractive and timely for Cathay Pacific.
62 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

Cathay Pacific completed its acquisition of Dragonair in 2006 for HK$8.22

billion (US$1.05 billion). As part of the deal, Cathay also spent HK$4.07 billion
(US$523.1 million) to double its stake in Air China to 20 percent (BBC News,
2006). This acquisition significantly helped Cathay Pacific to penetrate into the
mainland Chinese market. After it acquired Dragonair, Cathay Pacific then
expanded its business by taking over Dragonair's 23 mainland routes. It is clear that
Cathay Pacific regarded the takeover as a springboard to foster its position in the
mainland China aviation market. Additionally, the increased stake in Air China
indicated Cathay Pacific's intention to consolidate its market position in mainland
China. Cathay Pacific currently operates most of the company’s routes to mainland
China. The 2007 annual report of Cathay Pacific indicated that the dominant driver
behind the 71.8% rise in profit was due to strong passenger demand, which
comprised of the significant number of passengers flying between Hong Kong and
Mainland China (Cathay Pacific, 2007). Compared to the annual report of 2006
(Cathay Pacific, 2006), under the Dragonair section, there was a higher demand for
major routes into Mainland China. Cathay Pacific (2007) indicated that they
continually strengthened Hong Kong’s position as the prominent gateway to
Mainland China in the international aviation market. This acquisition was a turning
point for Cathay Pacific to expand its market and improve its competitiveness.

The Path to Success

Internal Success Factors

Cathay Pacific gained new routes and penetrated into new markets by acquiring
its competitors. Before Cathay Pacific purchased Dragonair, it had fewer aviation
rights than Dragonair between Hong Kong and mainland China. This acquisition
significantly helped Cathay Pacific to reduce the entry barriers into mainland China
since the aviation rights possessed by Dragonair could be transferred to Cathay
Pacific, and therefore, Cathay Pacific could own more routes between Hong Kong
and mainland China. Cathay Pacific (2006) anticipated that this acquisition would
improve the position of Cathay Pacific as an important aviation hub in the world
and perform as a platform for Cathay Pacific to expand into mainland China.
Cathay Pacific (2007) generated profits of HK$7,023 million in 2007, an
increase of 71.8%. The company reported that the key driver of this critical
reinforcement was strong customer demand, which comprised of high demand of
routes into mainland China. After the acquisition of Dragonair in 2006, it has
 Cathay Pacific’s Success Story 63

added 23 new destinations, and the number of customers increased five times in
2015 from 22 million to 34 million for Cathays Pacific as a whole group (Cathay
Pacific, 2016).
The acquisition reduced barriers for Cathay Pacific to enter a new market and
provided access to new resources, such as new customer markets, to significantly
increase their profits. The development in the new market with new resources was
essential for Cathay Pacific to grow and become the current dominant airline in
Hong Kong.

External Success Factors

Boost of Cargo Delivery Service – Spillover Effect from E-commerce
The steady growth of Chinese online shopping drives the need for cargo delivery
in the airline industry. The acquisition of Air Hong Kong paved the path to the
cargo delivery sector and the growth in E-commerce could increase revenues in the
near future. The forecast for entering this segment turns out to strengthen the
bedrock of existing air freight in Cathay Pacific. It is not much of a stretch to say
that the cargo business would stay up the same pace of growth as the E-commerce
would. As shown in Figure 2, the actual and expected E-commerce sales have a
positive trend as Chinese consumers purchase increasingly more online goods and
services.

Figure 2
Cross-border Retail E-commerce Sales in China (Billions and % Change)

*Source: eMarketer, retrieved from https://www.emarketer.com/Chart/Cross-Border- Retail-

Ecommerce-Sales-China-2016-2021-billions-change/212844 on 27/9/2018
64 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

The boom of E-commerce enables Cathay Pacific to enjoy robust cargo load.
Since 2010, Cathay Pacific has experienced the best volume expansion. According
to Figure 3, the expected volume expansion will continue with stable capacity
growth. Since 2012, it has witnessed the most significant rise in load factor, Thus,
E-commerce is considered as the growth engine, boosting airlines utilization and
revenue.

Figure 3
Freight Volume and Capacity Growth

*Source: Bloomberg Intelligence

From 2004 to 2017, Cathay Pacific shifted more focus onto cargo segments.
From Figure 4, revenues from cargo services have grown from HK$11,359 million
to HK$23,903 million in 2017. In 2017, the cargo business occupied up to 24%
revenue, signaling a robust growth.
 Cathay Pacific’s Success Story 65

Figure 4
Revenue from Cargo Services (Million HK$)

*Data Source: Bloomberg Intelligence

Increase in Customer Demands

The purpose of the two acquisitions for Cathay Pacific goes far beyond just
occupying larger market shares. These two strategic advancements became a
springboard for launching smoother market penetration strategies into a broader
range of customers in addition to existing segments in anticipation for the growing
Chinese economy. Figure 5 shows a steady growth of domestic flight routes in
China in the past decade, and the growth was mainly from business and leisure
travels.
66 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

Figure 5
Number of Civil Aviation Routes in China (1995-2016)

*Source: Statista,
Retrieved from https://www.statista.com/statistics/278467/number-of-civil-aviation-routes-in-china
on 26/9/2018

Macroeconomic Environment
The growing GDP in China could translate into higher disposable incomes for
the Chinese. Routes throughout Asian nations would be in high demand as
spending on air travel will increase together with other economic aspects
associated with national economic development. Accordingly, intense flight
schedule arrangements require well-developed infrastructures.
With increasingly established aviation infrastructures in China, these provided
the foundations to foster development in the airline industry. In June 2015, the
Civil Aviation Administration of China (CAAC) announced to invest over US$80
billion in over 193 domestic aviation projects, and that local authorities will
prioritize the establishment of airport infrastructure. It is expected that the number
of Chinese airports will reach 240 by 2020; the aim is to address the current
problem of a lack of secondary airports, which is restricting the growth of aviation
throughout the Greater-China Area.
 Cathay Pacific’s Success Story 67

Table 2
Summary of competitive advantage developed from the acquisition strategy

Success Factors Actions by Outcomes

Cathay Pacific
New resources and 1. Profits of HK$7,023 for
competencies 2007, 71.8% rise in profits
1. Aviation rights in 2. 23 new routes (2006-
mainland China Acquiring 2015)
2. More travellers Dragonair to 3. Number of customers
Internal
between Hong Kong obtain new increased 5 times (2006-
and mainland China routes 2015)
3. Reduce entry 4. Annual passenger flow
barriers to the mainland increased from 22 million to
market 34 million (2006-2015)
Boost of cargo delivery
service
1. Stable growth of freight
1. Chinese E-commerce
Acquiring of capacity
propels the demand for
Air Hong Kong 2. Cargo service revenues
cargo delivery airlines
to strengthen comprise 20% of the total
2.From 2004 to 2017,
the cargo sector revenue and remain stable
Cathay Pacific shift
fluctuating
more focus on cargo
segments.
Increase in customer
demands Acquiring all
1. Prospering economy three 1. Increasing number of
External boost airline business competitors to routes between mainland
2. Early acquisitions satisfy the gap China and Hong Kong
enable access to between supply 2. Increase in revenues
mainland Chinese and demand
markets
Macro-environmental
1. In June 2015, CAAC
benefits
Acquiring announced investment into
1. Booming economy
Dragonair to domestic projects for the
increases individual
penetrate into aviation industry
disposable incomes
mainland 2. The number of Chinese
2. Large investments
market airports will reach 240 by
on aviation
2020
infrastructures
68 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

Dark Hours for Cathay Pacific

External Challenges – Intense Rivalry

Threats Loom from Mainland Airlines’ Pricing Power
Driven by the boost of mainland business and the increasingly urban
demographic, the low-cost airlines erode Cathay Pacific’s pricing ability. Mainland
carriers expand aggressively for the international web of destinations with frequent
and premium services. Because of the economy of scale, mainland airlines pressure
down Cathay Pacific’s passenger yields as well as pricing power. As presented in
Figure 6, since 2014, the yield for Cathay Pacific has fallen 23%.

Figure 6
Yield per Passenger Kilometer

*Source: Bloomberg Intelligence

As shown in percent growth, the low-cost segment is evolving rapidly. In the

Asia Pacific, schedule operators recorded 935 million passengers compared to 328
million for budget airlines. By 2019, the low-cost carriers (LCC) segment is
expected to register over 8% y-o-y growth in the region thus outpacing schedule
carriers (Figure 7). The development of low-cost carriers could affect the
equilibrium of the airline market. Airlines at lower prices might gain more
advantages. Because of the economy of scales of mainland airlines and rapid
development of low-cost carriers, Cathay Pacific might be negatively affected by
the competitive prices offered by its rivals.
 Cathay Pacific’s Success Story 69

Figure 7
LCC and Schedule Airline Growth Rates in Asia Pacific

*Source: Euromonitor International

Direct Flights Offered by Other Chinese Airlines

While Hong Kong is an international transfer hub, this competitive advantage is
no longer as strong as before. The purpose of the strategic acquisitions is to revive
Hong Kong as a transfer platform, not only for East Asia but for the whole Asia
Pacific region. However, with the aggressive growth of the Chinese economy, this
locational advantage would be inevitably shared with mainland Chinese airlines.
The explosive expansion of Chinese airlines threatens Cathay Pacific’s long-haul
business. Chinese outbound travellers are provided with more alternatives
regarding international destinations; travellers tend to depart from their home city
instead of transferring via Hong Kong. From Figure 8, it seems that the growth of
Cathay Pacific became stagnant, while the intensity of competition did not
diminished.
70 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

Figure 8
Long-haul Available Seat Kilometers

*Source: Bloomberg Intelligence

Internal Challenges – Inefficiency & Ineffectiveness of Operation and

Strategy
High Operating Costs
The existing cost structure of Cathay Pacific is not sustainable compared with
other airlines. Figure 9 shows that in 2016 and 2017, the operating cost per
available seat kilometer (ASK) for Cathay Pacific was the highest among three
other Chinese airlines. The three Chinese airlines' landing and parking costs were
on average 4.5% lower than Cathay's in the 2016 financial year, maintenance costs
3.5% less, and staff expenses 3.0% lower.
 Cathay Pacific’s Success Story 71

Figure 9
Cost per ASK excluding Fuels

*Source: Bloomberg Intelligence

Cathay Pacific suffers from a high cost of labour, as presented in Figure 10. The
initiative to cut off different compensation packages for employees could save
HK$4 billion over three years. The rigid high labour cost would contribute to
dragging the net profit performance.

Figure 10
Staff Cost-Operating Expenses Ratio

*Source: Bloomberg Intelligence

72 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

Table 3
Summary of challenges after acquisition

Challenges Results

Economy of scales of mainland

airlines and development of low-
Passenger yields fell since 2014.
cost carriers threaten Cathay
Pacific's pricing power.

External

Direct flights offered by other The growth of Cathay Pacific

Chinese airlines. stagnates.

Ineffective operating costs

Net profit performance bears the
Internal management compared to other
burden of high labor costs.
Chinese airline companies.

Acquisitions – Other Aviation Companies

In this paper, the acquisition cases by Cathay Pacific were presented with
discussion on the success factors that contribute towards the successful competitive
strategy of Cathay Pacific. Also, the challenges brought by acquisitions have been
depicted. Although Cathay Pacific is a representative aviation company in Asia, the
following brief examples of Cathay Pacific’s current competitors further illustrate
how acquisitions bring success.
 Cathay Pacific’s Success Story 73

Table 4
U.S. Airline Industry

*Adapted from “How M&A Has Driven the Consolidation of The US Airline Industry Over The
Last Decade?.” by Forbes, 2016. Retrieved from
https://www.forbes.com/sites/greatspeculations/2016/05/04/how-ma-has-driven-the-consolidation-of-
the-us-airline-industry-over-the-last-decade/#4a1cab282bba.

In the United States airline industry, acquisitions have also shown positive
outcomes. Scholars (Forbes, 2016) argued that mergers and acquisitions led to the
consolidation of the U.S. airline industry. As Table 4 presents, the top 4 airline
companies formed an oligopoly in the U.S. airline industry in 2015 with 84%
market share compared to 68% in 1990 after several mergers and acquisitions. As a
result, the top 4 companies might be able to control and manage the dynamics of
the aviation industry, which consolidated the airline industry in the United States.
With better market segmentation, airline companies in the U.S. can utilize more
attractive pricing strategies and better-organized schedule. It seems that the
situation is similar to the one in Hong Kong. As Cathay Pacific is the dominant
airline in Hong Kong, the aviation industry remained stable for decades. In both
cases of Hong Kong and the U.S, the acquisitions increased market shares and
eliminated competitors, which resulted in a stable market.

Conclusions

Cathay Pacific’s transformation from a foreign-funded enterprise into a world-

leading airline company is no small feat. This paper focuses on the success factors,
which were brought by multiple successful acquisitions. As for internal factors, the
market-entry strategy during its global expansion enabled low-cost flights of
Dragonair to obtain market share of price-sensitive customers. Additionally, the
limited airline resources were integrated and utilized, which increased the
competitive advantage in the Asia Pacific region. Referring to external factors,
74 ACADEMY OF ASIAN BUSINESS REVIEW, DECEMBER 2018

rapid developments in E-commerce indicate opportunities for Cathay Pacific to

enhance its cargo services. Besides, the growing high demand of customers and the
beneficial macro-environment in Chinese aviation industry were also incentives for
Cathay Pacific to expand its business to the mainland market.

To summarize, the success factors can be divided into two parts:

➔Factor 1: Fast entry into profitable segments
Actions: Operate mainland customer flights and cargo delivery
➔Factor 2: Tangible and intangible resources
Actions: Enlarged customers & Operating routes & aviation rights
➔Overall outcomes: Higher customer bases and market shares, more spending
focused on core operations, higher profits

Despite the benefits of acquisitions, entering a new market could lead to more
aggressive competition. Compared to other mainland airlines, Cathay Pacific
suffers from pricing disadvantages and relatively ineffective operating costs. To
compete in the mainland market, Cathay Pacific needs to take more strategic
actions to improve its competitive advantage.
This paper focuses on the significance, impact and implications of Cathay
Pacific’s acquisitions. Previously, there has been little detail on the challenges that
Cathay Pacific suffered due to their strong rivals and the increasingly turbulent
competitive environment. The main contribution of this study is the critical
evaluation of the success factors subsequent to its acquisitions that allowed Cathay
Pacific to successfully maintain its dominant position in the market. Further, this
paper discusses the challenges companies may face after acquisitions, presenting
implications for other companies in light of the Cathay Pacific example.

(Received June 01, 2018; Revised September 27, 2018; Accepted December 17, 2018)
 Cathay Pacific’s Success Story 75

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