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iMad
16th Apr 2009, 10:22
Message from the Chief Executive – Invitation to briefings for staff on Friday
Posted On: 16 Apr 2009

Dear colleagues,

I’m sure you are aware that the global economic meltdown is hitting the aviation industry hard. At Cathay Pacific, a toxic combination of low fares, weak front-end business, poor cargo loads, falling yields and negative currency impact is making it more important than ever to preserve cash.

Tomorrow Chief Operating Officer John Slosar and I will host a series of briefings in the Auditorium at which we will outline our strategy for dealing with the current situation. We will announce a series of measures that will help preserve cash and put us in a stronger position to maintain the long-term sustainability of our business. These are important briefings and I urge you all to attend.

As we’ve communicated repeatedly this year, we expect the whole of 2009 to be extremely challenging. Our revenues - passenger and cargo - have been significantly affected by the downturn, and even though our back-end loads are still quite high, most of those passengers are travelling at very low fares.

Our absolute priority must be to preserve and save cash wherever possible. We have done a lot already to lessen the impact of the downturn including deferring capital expenditure, speeding up the retirement of the Classics, parking aircraft, redeploying capacity to more profitable routes, introducing voluntary unpaid leave, reducing our marketing spend and putting a hiring freeze in place.

But it is not enough. That is why are we are taking these further measures which we will communicate to you at the briefings on Friday and through other internal media. Please refer to the details of the staff briefings below.

superfrozo
16th Apr 2009, 10:33
Ok, so the way I see it there are three main possibilities when CX announces its "Mandatory Unpaid Leave" (MUPL) scheme tomorrow and the AOA subsequently refuses to endorse it:

1. Company backs down and doesn't impose MUPL.:}

2. Company unilaterally imposes MUPL with assurances/guarantees of recompense by X time or X economic recovery criteria which AoA grudgingly accepts, or...:cool:

3. Company unilaterally imposes MUPL and a very ugly Labour Tribunal/49er style flare up ensues.:ugh:

Comments from the supercoach(es)??:confused:

Cpt. Underpants
16th Apr 2009, 10:43
Grim Tony WITH TIE!!

Uh-oh...we're in for it now....

VR-HFX
16th Apr 2009, 11:17
The TT Game Plan

-dump the 340's and some of the KA320's as a trade-in for some cheap cancelled 380's on the never never.
- work the 330's harder.These are the beasts that make the money.
- reduce frequency to TPE and BKK.
- pull out 25% of the J class capacity and 60% of the first class.
- whistle Dixie as the bum hole closes real tight.

VR-HFX
16th Apr 2009, 11:27
Mr Fox

Yes indeed...:ugh:

mr Q
16th Apr 2009, 12:00
Other airlines are re-examining long-haul flights as well. In August, 2008, Cathay Pacific told the Wall Street Journal that rising fuel prices are hurting its trans-Pacific long haul routes disproportionately; it will cut the number of such flights it offers and redeploy its aircraft to shorter routes such as between Hong Kong and Australia. "We will...reshaping our network where necessary to ensure we fly aircraft to where we can cover our costs and also make some money," Cathay Pacific CEO Tony Tyler told the newspaper

wikipedia

Nullaman
16th Apr 2009, 12:13
KY on offer at the Park 'n Shop

:*

Yeager
16th Apr 2009, 14:51
Bring lubrics for the meeting folks. :} Take it like a man :D

moosp
16th Apr 2009, 15:59
Many years ago the then CEO (he wasn't called that silly moniker in those days) Peter Sutch was invited to address a meeting of the AOA in the middle of difficult industrial conditions. He did, and started by announcing that he was the butter on the bat handle. After more of this he left to a standing ovation.

I cannot imagine a modern manager walking into the bear pit of an AOA meeting.

Those were the days of leaders.

Yeager
16th Apr 2009, 17:27
Cathay Pathetic is a living proof of the fact that those days are over (with great leaders).
Now its all about me, myself and I and the bonuses the fat cats can suck in for themselves. They deserve no respect - and I suppose thats about what they get. Good on them :D maaaaaate..

wayne's tache
17th Apr 2009, 04:24
Those were the days too when CX lost the plot on pilot salaries, paying way over the odds to A-scalers, and laying the basis for much of the squabbling over compensation and terms of recent years.

No wonder Peter Sutch is remembered so fondly by so many.

No doubt next we'll be hearing that he remembered everyone's names, and was godfather to their children.

Apple Tree Yard
17th Apr 2009, 04:45
Wayne...you're such a moron. The reason that A scalers were paid so well were numerous: dedicating your working life to HK (no bases back then buddy boy), heavy flying tasks, big compromise for wife and family, early retirement age...etc, etc. Why don't we comment on the ridiculous pay and bonuses for our underserving management...? No, of course not...only they are really deserving. :mad:

wayne's tache
17th Apr 2009, 06:41
Apple Tree Yard,

So now that CX crew can go out on bases and can extend their contracts beyond earlier retirement ages, "management" reasoning in trying to get pay back towards an industry standard seems logical? My guess is that you think not.

Plus how about the hundreds and hundreds of non-Chinese CX staff who continue to "dedicate their working life to HKG". By your reasoning premium pay is appropriate for them too.

I don't even know what you mean by the "management" - the Board, the executive, the top 50 "managers", managers in general or just anyone who disagrees with you?