Yet then again re-pegging the maximum rent to such a low figure for FOs severely clipped it’s wings and ensured that the proposal would never fly. The very fact that the initial proposal for a change to the Housing Policy came from management meant they were seeking new ways to increase profits at the expense of the pilots.
Speaking of profit, Cathay announced today that 2003’s result was a HK$1.30 billion profit (US$165 million). The first half was a loss of HK$1.24 billion due to devastating effect of SARS on air travel. This means that the second half must have been HK$2.54 billion profit to offset the first-half loss.
If this was extrapolated over a SARS-free 12 months, it would indicate a full year profit of HK$5.08 (US$650 million). This compares with a 2002 net profit of HK$3.98 billion (post 9/11).
Not such a bad effort for a bunch of "Cathay pilots who have no balls". (Ably assisted by a dedicated ground force flogged into submission by a tyrannical management).
Oh by the way, they achieved the boss’s obsessive goal of Operating Costs of HK$2.00 per ATK (Available Tonne Kilometers). Is he happy? No, you guessed it. He has just set a new target of a further 10% reduction. That means HK$1.80 per ATK. Batten down the hatches for more rough weather ahead.
One can imagine management starting with the Housing Proposal by shredding it…Just like they did to the package being offered to the new recruits for Air Hong Kong.