Cathay Pacific to spend HK$2 billion on e-business

Cathay Pacific Airways will invest HK$2 billion ($256.5 million) on more than 30 e-business ventures over the next three years. Most will be launched during the next six months as part of the airline's goal to become Asia's leading e-business air carrier. The HK$2 billion figure excludes spending on infrastructure, and will be financed "internally", according to Cathay Pacific's director and chief operating officer, Philip Chen, who declined to reveal further details on the matter.

Cathay Pacific's e-business projects include a newly launched flagship website, a cargo website with online booking and tracking capabilities, an e-procurement project, and the launch of a global corporate intranet. The airline conservatively estimates that it will reduce total expenditure by more than HK$500 million a year by 2003 as a result of its e-business projects. Cost savings from procurement and distribution will make up the bulk of the savings. The airline also expects that incremental revenue will be generated through its websites, and by creating customer loyalty through new service tools.