View Full Version : How Convenient
10th May 2012, 10:56
Just as the company is about to park aircraft due to a lack of flight crew we now have to park aircraft because flights aren't making money.
Really? Your flights are nearly full but you're going to park planes?
I suppose its hard to justify mismanaging the recruitment of flight crew which doesn't look so good to the shareholders. Easier to blame fuel costs and poor yields.
Unpaid leave for pilots? Maybe on the 400 but even that I doubt.
Am I dreaming up conspiracy theories or is the CEO really telling us the truth?
10th May 2012, 11:01
Were his lips moving?
No disrespect, but this sounds a bit paranoid and restricted to a pilot's perspective to me.
The Lack of crew - scenario has a lot to do with wishful thinking imho. The recruitment exclusively via cadets is very common at other airlines since decades, I am actually surprised CX hasn't done that earlier. Terms and conditions decline everywhere, unfortunately simply the result of supply and demand. As long as young guys in their teens and twens dream about becoming a pilot, willing to do whatever it takes, this will not change, like it or not. ( I am only the messenger here)
In a few years nobody will remember what the fuss was all about. If you can't train a cadet to Cpt in 15 years you only have to blame the training system, not the individual, that's for sure.
I am afraid the downturn is real. Remember with computerized real time pricing methods you can always fill up planes, but of course the yield is what counts.
10th May 2012, 13:39
“These cost savings will help to improve cash flow – and cash is king at a time like this.”
You are sitting on billions of cash in the bank. What's the crying for?
10th May 2012, 13:53
Not only CX, but SQ with their surprise loss of $31 million USD instead of a profit. Cathay Pacific, Singapore Air Slump as Fuel Hits Earnings - Bloomberg (http://www.bloomberg.com/news/2012-05-09/singapore-air-posts-loss-cathay-slows-growth-on-fuel.html)
I have no doubts CX is losing money due to slowing demand in air travel and rising costs such as fuel. No offense to any CX employees, but as a frequent business traveler, I would choose SQ over CX any day. If SQ is losing money, I have no doubt CX would be in the same or even worse position.
There is a bad financial storm coming, get ready for BOHICA (bend over here it comes again)
May I ask why you prefer Singapore?
10th May 2012, 14:05
1. Cash could be for acquisitions when the fire sale starts... ?
2. There is NO better distraction than a profit warning to deflect attention from unnecessary media focus on 'safety' issues.
3. Good opportunity to drive stock lower to utilize the cash saved later ?
Yield & Fuel are flavor of the month ... so why not use them to purge decision making boo boos & cover up 'bets' gone wrong.
Organizational Re alignment 101
10th May 2012, 14:10
And BTW ...who cares if a few thousand employees get screwed in the process ?
10th May 2012, 14:46
It would be interesting to burrow into SQ's accounts and see the contribution VS are making to the bottom line...:E
10th May 2012, 15:07
...... and the A380!
12th May 2012, 01:41
If you don't realise that your preference for SQ over CX is irrelevant to financial results, then I raise an eyebrow at the reasons for your 'frequent business travel'.
In recent times, CX consistently financially outperform SQ and will continue to do so. One thing the CX machine are good at is managing money. One may not always agree with their methods, but they clearly are doing something right to outperform the rest of the worlds '5-star' carriers in this climate, bearing in mind they are substantially smaller than SQ, EK etc..
12th May 2012, 02:09
Cathay is a business. When they make money they hide it everywhere in order not tot pay business tax on it. Offshore accounts, foreign currency accounts, etc.
But when they re losing money, then everything comes out, make it as bad as possible. Get all those write-offs happening, claim fuel prices are hitting them hard.
This is the only company which had kept it's pilot crew recruitment low waiting for this downturn. That's why we are so over worked, under paid and generally feed up with this company.
One or two things we can live with, but when these one or two things turn into 10-15 things that we are grumbling about, we start to moan louder.
If we are losing money and our loads are full, then common sense means we're not pricing our tickets correctly. Increase price!! We might lose 2-3% but the gain in price over these loses would make up for this.
Sure get rid of the inefficient fuel burns planes. But consult an engineer before parking planes. Don't park planes that are in excellent order, just because they are the oldest. Maybe you have some planes that need some serious work done on them that will cost millions?
But then again - this is Cathay. And they don't listen to anyone - because they invented flying. Hang on - maybe they listen to the Australian and Canadian authorities....... hmmm.
Al E. Vator
12th May 2012, 06:06
How many times in the last 15 years have CX cried out "the sky is falling" only to make record profits (and thus reward executives with ever-larger bonuses)?
Does anybody fall for this tired old line anymore (other than the gullible press keen only to fill column space with anything any PR department trots out)?
And yields? Sorry am I missing something here.
If the aircraft are always full yet the yields are down then is it not a reasonable assumption that there is a problem with yield management? Charge a little more until the 100% load-factor dips to 99 or 98%, then you know you're at optimal yield?
Only MHO and I'm sure it's more complex than I have presented but the basic logic seems to be wanting at CX.
And the never-ending doomsday PR spiel gets very repetitive and sounds increasingly ludicrous.
Finally, if you genuinely can't make money (which as I've suggested is utter rubbish anyhow) in the amazingly buoyant and ever-growing market that is China then there is something drastically wrong with your business model. Consequently, the designers and administrators of that model should resign as they have failed at their duties.
Just a great big load of PR Crap.