Premium Economy

BRAND-NEW Premium Economy Class

Total enhancement of Economy Class experience

What is Premium Economy?(according to seatguru.com)

• Some airline carriers offer Premium Economy, a separate class of seating and service, that differs from standard Economy. Premium Economy is found mostly on international flights and, compared to standard Economy, offers about 5-7 inches of extra legroom as well as additional amenities, which can include:

• 1-2 extra inches of seat width• 2-3 extra inches of seat recline• Adjustable headrests, legrests, or lumbar support• Larger personal TV screens• Laptop Power Ports• Premium Food Service

• Separate cabin with 26-34 seats• 38” seat pitch• 19.5” seat width• 8” recline• 10.6” widescreen TV• In-seat universal power supply outlet• Phone/ iPod connector• USB port• J class blanket /pillow /head set• PEY amenity kit

* Progressively being installed on long-haul aircrafts

Premium Economy Class

PEY Facts

Meal Service

Welcome Drink Champagne from J class

Appetizer Same as EY

Hot Main Meal Same as J class menu entrée choice in casserole dish

Tray setup has additional individual praline portion.

Breakfast Same as EY entrée I foil container

PEY-setup use marmalade in glass jar.EY- use portion pack.

Snack 1 apple, 1energy bar, 1 bag of chips.

EY – noodle cup.

Amenity Kit

Designed by G.O.D. ( Goods of Desire)

• Plan to have 4 designs per year, 2- outbound , 2- inbound

• Bag made from at least 90% recycled plastic bottles

• Tooth brush made mainly from corn starch and cellulose.

Cabin 77G 77H

First -- 6F

Business 40J 53J

PEY 32PEY 34PEY

Economy 270Y 182Y

Total 342 275

Cabin 747

First 9F

Business (Main Deck) 24J

Business (Upper Deck) 22J

PEY 26PEY

Economy 278Y

Total 359

747 – 400Seating Map

CX USA Pricing

Season West Coast - HKG R/T East Coast to HKG R/T

Low

01Jan - 23May $1500 - $4584 $1600 - $5780

15Aug - 09Dec

Shoulder $2000 - $4584 $2400 - $5780

24May - 14Aug

High $2200 - $4584 $2600 - $5780

10Dec - 31Dec

Higher booking class/inventory beyond HKG

– W→ Y (unrestricted)– R→ B – E→ H

Pricing Advantage

Fare Basis Fare* EY vs PEY

ELXSPCL $1,500 BLESPCL $1,955 $455 +

HLXSPCL $1,275 $255 -

KLXSPCL $1,120 $380 -

Full Y $3,820 $2320 + *Above rates are from SFO/LAX

All PEY fares are valid for 1 year with $50 rebooking fee

Competitive Landscape 1-2

BR Economy Deluxe product has been in the market for a long time – see published fares below.• Lowest rate

• $1420.00 – SFO/TPE/HKG/TPE/SFO*• $1420.00 – SFO/TPE/SFO*

*04Feb13

• CX - $1500.00 (West Coast Rate)

BR NH CX UAElite Premium Economy PEY Economy Plus Class

Configuration 2-4-2 2-4-2 2-4-2 Same as Y

Width 18.5” 18.5" 19.5” 18”

Pitch 38” 38” 38” 34-36”

Recline 24 degree N/A 8” N/A

Screen 8.4” N/A 10.6” N/A

Audio AVOD* AVOD* AVOD* N/A

RBD L,V,Q,M E W,R,E N/A

*Audio Visual on Demand

Competitive Landscape 2-2

  British Airways (BA) Virgin Atlantic CX

World Traveller Plus Cabin   PEY

Configuration 2-4-2 2-4-2 2-4-2

Width 18.5” 21" 19.5”

Pitch 38” 38” 38”

Recline Recliner 8" 8”

Screen 60% larger then Y N/A 10.6”

Audio AVOD* AVOD* AVOD*

Customer FeedbackSue Chen - Sunshine Travel(BOS)I took your Premium Economy on my Feb trip and enjoyed it very much.Seats are comfortable, food is awesome, service is excellent, a great product you have there for us to have more reasons to sell Cathay in Boston. It is a superior product, a quiet section to enjoy the Cathay flight. Price is reasonable. We will continue to sell more Cathay and let our customer know that Cathay flight is a more enjoyable flight for their journey home.

Will Jennings -  Valerie Wilson Travel PEY is great for honeymoon couples and elderly leisure couples who don’t want to pay for business class but wantsomething more memorable than economy class.  The greatest feature, besides the extra legroom and amenities is the seating configuration.Couples like the window/aisle of the 2-4-2 configuration rather than the 3-3-3 in economy class. They don’t want someone sitting next to them.

Dann Vidana – Provide Comemrce (SAN)The majority of our Asia travelers from our company previously flew on a variety of airlines all with varying degrees of quality.  We recently begun to fly Cathay Pacific's Premium Economy Cabin and the feedback from our extended team is that first and foremost they are pleasantly surprised how comfortable and spacious the cabin and seats are and how great the service level has been from the check in process on through the additional amenities offered.

Phil Baker, PeterGreenberg.comPremium economy is far superior to economy-plus seating found on United and other airlines that is often reserved for their frequent fliers. They offer extra legroom, but the seats are otherwise identical to economy. Compared to EVA, the Cathay seat is more comfortable, and the service much better. The seat was comfortable enough that I was able to sleep for 7 hours and had no backache at the end of the flight. One of the benefits of this ticket was that it could be cancelled or changed for a $50 fee right up to flight time. So was it worth the extra money? For me, it's a definite yes.

Fred Sherman, Yahoo! Travel I think the Premium Economy service does provide a good value and offers convenience and comfort worth the additional cost. On flights to Asia that can be 14 or 15 hours, being cramped in a small seat, tightly surrounded by other travelers can be unbearable. The Premium Economy service offers a higher level of service without having to pay five times the price of a Coach ticket for a Business Class ticket to get it. I think with an airline like Cathay Pacific, that caters to and understands how to serve First and Business Class passengers, you get that same high level of personalized service in Premium Economy, adding to the value received for that higher ticket price.

MARKETINGMarketing Initiatives• H1 Brand Campaign w/ PEY focus – Integrated Partners included Forbes,

Conde Nast Travelers, Entreprenuer• Online Fares + Booking Incentives – (ie. PEY + inflight sales vouchers)• Miles for Me Bonus Offer for selling PEY – ends April 30, 2013

Marketing PEY Selling Tools• Brochures (Hard Copies & PDFs available)• Photos & Banners (to be used on Travel Agent Portals: Virtuoso/AMEX)• Ipad/Iphone Apps• Seat Map/ Pics• Interactive PEY Tab on FB Page • FB - Ads to promote PEY• Highlight PEY on ORD/HKG, PEY double miles

• Agent contest (registered CXAgents members)– USA gateway-HKG,. Travel :02Feb-30Apr, grand prize :2 r/t PEY tkt to

HKG• Double PEY Miles

- Travel: 01Jan – 30Apr13, registration: 04Dec12- 30Apr13• ORD-HKG PEY , $100 gift certificate.

-Travel: 01Apr – 01Jun13, selling: thru 01Mar• PEY promo fare

- USA gateway – India. Travel: 15Mar-30Apr13, selling: 11Feb-18Feb13

Current Promotions

LOYALTY• PEY will earn 110% of Asia Miles / same for AAdvantage Miles • Holding a PEY ticket will give a better chance to acquire a Business class

seat.• Guaranteed Premium Economy Class seat (for Diamond members who

book “W” class 24-hour prior to departure)

Asia Miles PEY Redemption Y to PEY PEY to J

Booking Class T T UEligible Class M,K,H,B,Y R,W**Miles Required

SFO/LAX - HKG r/t 72000 30000 30000o/w 48000 20000 20000

ORD/JFK - HKG r/t 108000 45000 45000o/w 66000 27500 27500

Upgrade awards are not available on codeshare flights**E class not eligible upgrade to J

1200

1000

1700

1400

480

400

680

560

W/R

E

700

530

1000

800

225

170

260

260

W/R

E

Program renews on May 1, 2013 with NEW PEY earning levels

Sales Message

Emphasize and benchmark VALUE over Economy Class rather than Business Class.

1. Value over cost.2. Extra comfort and personal attention.3. Enhanced meal service.4. Better and easier pre-boarding airport experience.5. More flexible redemption and upgrade policy.

What’s New?

BOM – PEY Launched 02Mar13

DEL-PEY Launched

MAA – PEYLaunched

HYD – PEY Launched

India

Current routes with PEY service

North America YYZ Europe LHR

JFK FRAYVR CDGSFO South Africa JNBLAX India BOM (Eff Mar13)

ORD DELAustralia SYD HYD

ADL MAAMEL Middle East DXBPER BAHBNE RUHCNS JED

AUH