Strengths
- Safety
Gilbert and Wong (2003) found that safety is always the first priority for passengers. (1)
Cathay has been gained the world’s safety airline for the 3rd years by Germany’s Jet Arline Crash
Data Evaluation Centre (2). High safety standard can get the trust of the passengers. - Global network/ Wide coverage
Both Cathay and Cathay Dragon reaching more than 90 destinations, throughout Asia, the Pacific, Europe, North America, the Middle East and Africa.
Cathay also a member of “Oneworld” an alliance of the world’s leading airlines, passengers can travel over 1000 destination under the alliance.
At March 2017, Cathay with the Lufthansa Group accomplished a co-operation agreement. Under the agreement, Cathay Pacific will …show more content…
(5)
Cathay positions itself as an airline offering quality service, service is absolutely critical. Cathay has been gained the Skytrax Airline of the Year in 2003/2005/2009 and 2014 (6). But we’ve found its go backward in different aspects in recent years.
High level on-time performance is a key aspect of quality at the airline. However, according to the On-time performance monthly report (June 2017) Aviation Worldwide Limited (7), both Cathay Dragon and Cathay Pacific ranked at no.134 (on time percentage – 52.1%) and no.125 (on-time percentage – 63.8%) compare to Global airlines (total 376 airlines) and ranked at no.112 and no.81 compare to ASPAC airlines (total 117 airlines). The situation is even worse than some budget airlines.

For improve profitability, Cathay is re-configuration the economy class from 9 to 10 seats from 2016. It means that’s reducing the comfort of the passengers (8).
On the other hand, the frequency for deep cleaning of the aircraft cabins has been declined from once every 14 days to once every 21-30 days. …show more content…
Threats
- Chinese airlines offering direct routes to other countries has resulted in dwindling number of people flying to Hong Kong
Few years before, about 25% of passengers of Cathay were from mainland China, Hong Kong is a transit station to them to go to other countries. However, more and more international routes provided by the Chinese airlines in recent years. At 2012, there’s only 4 China Cities with direct flights to north America, it has been up to 16 cities in 2017(14)
Beside Air China, China Eastern Airline and China Southern Airline offering international routes, started from 2015, Xiamen Air, Sichuan Airlines and Beijing Airlines are also preparing to increase the routes to other countries.
On the other hand, some Chinese airlines/ routes would get funds/ policy support from the China government, the competitive power in between Cathay and the Chinese Airlines is getting farther and farther. - Fluctuate oil price and the impact of fuel hedging