Dear Anna

[FUANNA]

Dear Anna,

your pilots have built the reputation as the worlds safest airline over the past decades.

That's why the traveling public is (still) willing to pay a premium on our airfares.

The 'crisis' we are facing is self-fabricated, and a result of running CX as a hedge-fund for commodities.

Your attack on our livelihoods and families will be answered with an unprecedented show of strength and unity.

We built this airline, and we will take it down with us, if we have to.

The true managers of this airline are the pilots. Not your lot of mediocre and greedy accountants, who know the cost of everything but the value of nothing.

You will find this out shortly.

[Trafalgar]

Amen Fuanna. Could not agree more. To my colleagues: resolve to resist and attack to reinforce the future value of your careers. Otherwise you will have nothing left to defend.

[a370]

As an outsider , I agree whole heartedly with the above posters sentiments . Its stirring.
However , with regards

"Your attack on our livelihoods and families will be answered with an unprecedented show of strength and unity."

There is absolutely no chance in hell this will ever happen .

Now please go and pi$$ in your collective ex pat holes, and take a hike from your mummy milk Co.

HKA will rule. LOL.

[betpump5]

This clown again.

[Trafalgar]

it's interesting to see how bitter he is at being turned down at CX.....but at least we dodged the bullet of having to work with him.

[FUANNA]

Dear Anna,

the next level of resistance will be a mass resignation of your few remaining trainers.

This step has been prepared and carefully orchestrated behind the scenes for quite some time.

The VAST majority of us trainers supports this step to protect our profession and livelihoods.

Your 2018 Airbus deliveries will find a cosy parking spot somewhere in the desert.

Enough is enough, Anna.

[pfvspnf]

A370 are you high or what ? Not too much psychometric testing when entering the airline in this region we can clearly see

[a370]

Don't shoot the messenger. Anna is saying the same, just with more eloquence lol.

So, Traf, please enlighten us all. When are you going to resign from training in protest at the forthcoming cuts in TnC's? Hmmmm I though so, lol.

[Captain Dart]

Do try to keep up, a370.

[raven11]

A370

Have you not read all the other posts today??

Or are you eager to prove you're always...a day late...and a dollar short.

[Cpt. Underpants]

Anna, please read this.
Don't discount it, it's not a trick or a ploy.
This is the reality you're facing.

http://flip.it/SdtnS8

[Progress Wanchai]

Cpt. Underpants,

You're not getting it.
Anna doesn't care if CX is here in 12 months or not. Her Swire survival and promotion is based on gaining concessions from flight crew. That's what her KPI is based on.

[bm330]

And that's what is most important. She works for Swire and when this Airline is gone, she'll still be working for Swire.

[FreemaninHK]

And that's what is most important. She works for Swire and when this Airline is gone, she'll still be working for Swire.

So what is most important.. is we get rid of her.

Thru whatever means.

[kahaha]

Meanwhile, Last year the DPA put forward a motion of a pay freeze to its members. The membership that voted, overwhelmingly accepted the motion, with a caveat that the agreement would be for one year.

Since then, the former GM has left the company, so there's a new Boss to negotiate with. The company are now indicating they want 2 further years of pay freeze from the DPA, to be reviewed in 2020.

Some concessions for local
Employees are expected but zero for the senior B scale pilots.

The decline in pay for the KA pilot group is around 4% compounded over 3 years. Or 5 if you take into account the 2% pay adjustments in 2015/2016.

The company continues to attract qualified , experienced pilots from mainly europe. Command progression is quick , presuming you can jump through the hoops. But theres the pitfall. The new joining pilot may be experienced , but not necessarily be a fit for the esotericism of the KA way when it comes to command.
Interesting times ahead.

[Dan Winterland]

Many of these guys come here expecting the command - it's the only way they can survive on the package. If they don't hack it, many leave.

[drfaust]

As long as everyone is actually on the same page with regards to what a salary increase actually is. Inflation corrections on your salary are not salary increases. They are compensation for the constant devaluation of money over time. Not compensating for inflation would be a pay cut, not a pay "freeze" as is being suggested. I expect the DPA will be hammering this With whomever they will be negotiating.

With regards to these productivity gains I keep reading about it's fairly simple: Gain them by increasing efficiency. We still have a lot to gain there if we do 170 duty hours for 75 block hours and 30 to 40 sectors.

Looks pretty straight forward from where I sit.

[positionalpor]

Published on: Tuesday, September, 12, 2017, 03:27 PM
By: AeroTime staff Image :Ralf Manteufel
The bankrupt German carrier Air Berlin has canceled more than 110 flights on September 12. A representative of the airline confirmed that the company is “currently seeing an exceptionally high number of sickness reports of pilots”. The exact number was not specified to AeroTime but the company had previously stated to Deutsche Welle that around 200 of the 1500 pilots employed by the carrier had called in sick for the day.

With around 110 flights canceled, passengers are being requested to check whether their flight was affected or not on the airline’s website. So far, there is information about Berlin, Dusseldorf, Cologne, and Hamburg being among the cities affected by the cancellations.

“Passengers holding tickets for canceled flights will be offered other travel options,” an Air Berlin spokesperson answered AeroTime’s inquiry. “Affected passengers are kindly asked not to come to the airport and to call the Air Berlin Service Center.”

Speculations about this incident being a form of protest have surfaced in Bild, Germany’s top tabloid newspaper. The situation does, in fact, remind of similar cancellations affecting TUIfly flights a year earlier. Back then, pilots’ calling in sick was the quoted reason of mass absence as well.

According to the official statement published on the website of Vereinigung Cockpit, the professional union representing German pilots, the union did not receive any information regarding pilots that had fallen ill.

“VC points out to all the flight crew it represents that they must fulfill their obligations under the employment contract, provided there is acute illness,” the official statement says.

Vereinigung Cockpit was not available for immediate comment.

Marius Stonkus, CEO of Skycop.com – a company fighting for passengers’ rights to a compensation – told AeroTime that crew sickness might not necessarily fall under the definition of force majeure.

“That’s a very unpleasant situation for all the passengers concerned,” Marius Stonkus told AeroTime. “I’m pretty sure there are going to appear some losses for passengers due to ruined plans. And to cover up those they can claim for compensation up to 600 EUR per passenger. It won’t be easy because most certainly airline will reject claims by saying crew sickness falls under “extraordinary circumstances” list”.

The wave of cancellations is unrelated to the simultaneous cancellations of another 100 or so Ryanair flights to Southern Europe from the Irish carrier’s main UK base – Stansted. Delays and cancellations, in this case, have been caused by an air traffic controllers’ strike in France.

[poydras]

Dear Anna...........



https://www.youtube.com/watch?v=_7wEbD8pJTQ

[Trafalgar]

I know one pilot who just hit his 30 year mark. Not a single word of acknowledgement....not even from the fleet office. Disgraceful is the only word.

[22N114E]

Adding insult to injury Traf, in last Friday's Flyer she acknowledged the retirement of two gentlemen. For the most long serving (at 28 years) she could not get his military service nor the types flown as a Commander with CX correct!

[BusyB]

The Fleet Offices and their mangers are just as bad!!

[cxorcist]

The Fleet Offices and their mangers are just as bad!!

To be fair BB, I think the fleet offices are doing the same amount of work with fewer people. That said, it's still a disgrace.

[Trafalgar]

Although we have bigger issues to battle at the moment, the point being raised here speaks volumes as to the reason this company, and particularly Flt Ops and employee relations are so dysfunctional. If managers spend every waking hour complaining about their staff, not appreciating their efforts and skills, and in particular focusing all their attention on 'getting back' at said staff, you end up with the unholy mess that is CX. Well done Swires. :/

[mngmt mole]

Traf is right. And further to that point, why would anyone wish to tie the future of their careers, and the future of their families to a company that has demonstrated for over TWENTY years that they have no regard for their staff, their hopes and desires or their overall well-being ? The only sane option is to seek out a better employer and a better place to live. Those that live with false hope that CX will ever get better will be sadly disillusioned.

[betpump5]

There is a lot of ill feeling and stress on the Flight deck these days due to what is happening.

I hope when the next inflammatory stressful email comes out, all 2800 pilots will do the professional and responsible thing....(whether you read it or not)

Edited for BCs purpose..

[Trafalgar]

I agree. The next email or Friday Flyer will do it. Otherwise you can guarantee you will not have a career worth saving. Ask some of the older pilots how effective this strategy was back in 98/99. It is the only thing these self-serving managers will understand.

[broadband circuit]

I for one won't be booking off sick. Why? you ask....

Because I don't read the Friday Liar, and didn't read that recent email from The Emu. So, my stress levels are way down.

Stop reading that crap. If it's not in the ops manual, or FCOM, or an NTC, it's not worth the stress. Try it. Seriously, try it. It's one of the best decisions I've ever made.

[Trafalgar]

So when the nazis were threatening the U.K, and Churchill was warning of the danger, you would have ignored his advice (or not even taken the time to read it). Ok, there's always going to be one idiot putting his head in the sand. I'm sure AT appreciates you declaring you won't go sick.

[betpump5]

Broadband circuit - I was trying to make a subtle point...

[Strewth]

Head of Flight Crew Employee Relations (https://jobs.cathaypacific.com/cathaypacific/job/Tung-Chung-Head-of-Flight-Crew-Employee-Relations-HK/429143200/) CX Job portal 110917

[betpump5]

I watched I.T the other night. Not as good as the original. Wife asked me would I sh1t myself if I suddenly saw a Clown in the street.

Guess what I told her...

(Punchlines on a Post card please)

[FUANNA]

Dear Anna,

it is obvious to us, that your own survival here depends very much on a concession made by us. Your pilots.

But guess what, Anna. It ain't happening. Not even a tiny little concession. You know why?

Even though your glossy charts suggest otherwise (only because you forgot to consider inflation), the average pilot today costs you only a fraction of what it did 15 years ago, due to lack of proper housing/payrise/profit sharing etc etc., and all that while we are based in the most expensive city on this planet.

At the same time however, you managed to increase the average productivity per pilot significantly.

People work more for less.

You get the picture, Anna, don't you?! No concessions from us. Because they were made already over the years.

You dig your filthy hands a tiny bit deeper into our pokets, and we will close this freak show of an airline down for you.

You will see, Anna.

[Cpt. Underpants]

https://www.inquisitr.com/1889791/haruka-nishimatsu-ceo-japan-airlines-true-leader-business-depression/

[Mill Worker]

Head of Flight Crew Employee Relations (https://jobs.cathaypacific.com/cathaypacific/job/Tung-Chung-Head-of-Flight-Crew-Employee-Relations-HK/429143200/) CX Job portal 110917

I can think of a guy that would be really good at doing that job... in fact he did...

[LongTimeInCX]

Doesn't make me wonder at all Frank!
The fact that in depth details have been kept deliberately vague would cause most enquiring minds to quickly make up their mind about the issue.

And as for the recently departed individual, who was mentioned by MillWorker to be ideal for the job, in many respects yes, there are many who would agree. However, the position is a somewhat adversarial role, and the gentleman in question has people skills, morals and loyalty in spades, that alone would make him over qualified for such a position. An absolute gentleman.

[Shot Nancy]

Why doesn't anyone talk about the value of a good aviator anymore?

[boresite]

[QUOTE=Strewth;9890575]Head of Flight Crew Employee Relations (https://jobs.cathaypacific.com/cathaypacific/job/Tung-Chung-Head-of-Flight-Crew-Employee-Relations-HK/429143200/) CX Job portal 110917[/QUOTE

Looks like lots of targeted recruiting......

Flight Crew People Services Manager (Absence) - Cathay Pacific Cathay Pacific
Location: Hong Kong
Job type: Permanent
Sector: Flight Crew
Job Role: Senior Manager Jobs
Can't apply View similar
Location: Hong Kong

Department: Flight Operations

Reports to: Head of Flight Crew People Services

Purpose:

* To maintain oversight of the entire Absence Management function and team, and ensure jurisdictional compliance of the relevant Absence Management / Attendance Policies and Processes, relevant Sick Leave policies and Medical Clearances in conjunction with the Cathay Pacific or Cathay Dragon People Services Manager.

* To provide support to all areas of the Absence Management Team (AMT), and assist where necessary.

* To be responsible for identifying potential areas of automation and improvement where possible, to improve the efficiency and effectiveness of the team.

* To provide regular reports and updates to the Head of Flight Crew People Services.

Responsibilities:

* Maintain oversight and management of the Absence Management Team (AMT)

* Update Senior Management on significant absence and sickness related matters

* Accountable for the effective execution and management of the Pilots Absence / Attendance Management policies / processes and relevant Sick Leave policies. Where areas of improvement have been identified, the AMT Manager will be responsible for driving these efficiency improvement projects

* Monitor absence trends in all jurisdictions, manage all absence related issues and drive actions to resolve trends and issues where necessary. Strive to achieve the agreed sickness rate target for each year to minimise manpower costs

* Document and review patterned Long Term Sick

* Represent the Absence Management Team to work in partnership with Corporate Medical and the Fleet Office on Flight Crew’s sickness and absence related issues. Attend review meetings with Flight Crew under the ‘Stages’ of the Absence / Attendance Management policies if required.

* Advise Flight Crew on absence and sickness policies, and the Medical Clearance process. Ensure the effective education of Flight Crew in their obligations to Cathay Pacific or Cathay Dragon and the Hong Kong Civil Aviation Department (HKCAD) in regards to absence. This includes documentation and reporting requirements.

* Handle difficult questions, and manage these situations through influencing and education. Liaise with Fleet Office in situations that require further attention and care from the Flight Crew People Services Managers.

* Work with service providers with the objective of reviewing or formulating new strategies to address absence issues.

* Maintain and update letter templates to be sent to Flight Crew in the event of noncompliance or required follow up.

* Assist the Absence Management Executive in the oversight of sick allowance payments.

* Support the Absence Management Executive in ensuring that the Medical Clearance process is managed effectively, and minimise roster disruptions.

* Provide additional necessary support to the AMT where required.

* Carry out any other duties as assigned by Head of Flight Crew People Services.

* Preserve the confidentiality of privileged, sensitive or otherwise confidential company and individual employee information.

Requirements:

* University degree in HR or related discipline.

* Minimum 8 years of airline or professional experience working with people of different levels and cultural backgrounds.

* At least 5 years of previous leadership and people management experience, ideally in multinational organisations.

* Solid experience working in a collaborative environment, with the ability to effectively interact with management teams at all levels of seniority.

* Good knowledge of the relevant ordinances and best practices to ensure legal and contractual compliance. Knowledge on other countries’ legislation will be an added advantage.

* Knowledge of pilots’ policies and procedures, and a good understanding of the pilots’ culture would be an advantage.

* Strong communication, influencing and interpersonal skills.

* A strong driver of change and development.

* Excellent command of spoken and written English.

* Computer literacy, proficient in MS Office applications.

Competencies:

* Setting Directions

* Leading and engaging teams

* Driving business performance and change

* Developing and recognizing others

Application Deadline: 8 Sep 2017

Cathay Pacific is an Equal Opportunities Employer. Personal data provided by job applicants will be used strictly in accordance with our personal data policy and for recruitment purposes only. Candidates not notified within eight weeks may consider their application unsuccessful. All related information will be kept in our file for up to 24 months. A copy of our Personal Information Collection Statement will be provided upon request by contacting our Data Protection Officer.

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[BusyB]

Ryanair cancelling up to 50 flights a day for 6 weeks due crews having to have annual leave. I guess that's because salary's aren't high enough to keep pilots (off to other airlines)and recruit sufficient new ones. Perhaps AT could learn from this!!!!

[Bob Hawke]

Wouldn't need an absent manager if they could write a decent roster.

[Shep69]

LOL--good wind up.

Ya forgot to put a requirement for law degree with particular emphasis on contractural law, nations of basing laws, and laws of nations/provinces/states of operations and origins of all individuals working for the company.

Can be a real minefield if one doesn't know what one is doing.

Or I guess ya could just fix what is broken and get someone who smiles a lot and makes people happy. Naw, too easy.

[BusyB]

Hitler finds out Ryanair is cancelling flights - Caption Generator (http://www.captiongenerator.com/692732/Hitler-finds-out-Ryanair-is-cancelling-flights)

[FUANNA]

Hi Anna,

Just a brief update here from our side. As a courtesy so to say:

Your pilots are closing ranks, and getting organised. In an unprecedented manner ( including trainers).

Your FOP is going to implode, should you proceed with your attack on our livelihoods.

Remember? FOP is the department you are supposed to manage, and not destroy.

NO FOP = NO AIRLINE.

Just google ' Ryanair pilots leaving for Norwegian ', ... well, you'll get the picture, Anna.

There are currently plenty of options out there (one is just across the street) for all of our pilots, of all experience levels.

As an 'amuse bouche', your trainers will start to shut this circus before Xmas.

Think again, Anna.

[Krone]

There are currently plenty of options out there (one is just across the street)

Err , I hope you don't advocate leaving CX & starting at KA?!
However , it Would be a quicker command and ultimately higher financial rewards over a 20 year career.

Oh , I think you mean HKA, well no chance unless its a SO or JFO. C'mon, CX is a defacto legacy carrier. HKA defacto cheapo ;)

[cpahka]

looking at HX crew ad at facebook [ https://www.facebook.com/HKAFOP/ ]. quicker command in 2 years time !

[goathead]

Hi Anna,

Just a brief update here from our side. As a courtesy so to say:

Your pilots are closing ranks, and getting organised. In an unprecedented manner ( including trainers).

Your FOP is going to implode, should you proceed with your attack on our livelihoods.

Remember? FOP is the department you are supposed to manage, and not destroy.

NO FOP = NO AIRLINE.

Just google ' Ryanair pilots leaving for Norwegian ', ... well, you'll get the picture, Anna.

There are currently plenty of options out there (one is just across the street) for all of our pilots, of all experience levels.

As an 'amuse bouche', your trainers will start to shut this circus before Xmas.

Think again, Anna.

Hahahahah
I dont think the trainers will do squat
They are like hairdressers.
Their grandfathers who fought in world war 2 would be rolling in there graves .

[FUANNA]

Hahahahah
I dont think the trainers will do squat
They are like hairdressers.
Their grandfathers who fought in world war 2 would be rolling in there graves .

The level of frustration is unprecedented.

Almost everybody has reached a breaking point.

Including trainers.

[rhoshamboe]

Including trainers? Do you mean "the letter"?

[cxorcist]

The level of frustration is unprecedented.

Almost everybody has reached a breaking point.

Including trainers.

Didn't trainers, in a sense, put us here in the first place? No offense, many I like and consider friends. However, training your own cheaper replacements voluntarily is just dumb.

I have long desired to train, not check, but I will never be doing that at CX until we are all on the same contract, pay, and benefits in HK. I would make an exception for bases as long as those based contracts are sufficient to attract my colleagues away from HK (as opposed to only staffing with cheap new hires, aka a notional Asian base outside HK).

[RAT Management]

So full of crap. It's just not funny anymore. I don't think you even believe the crap you write. COCK! That's all you are.

[TheGreenDragon]

looking at HX crew ad at facebook [ https://www.facebook.com/HKAFOP/ ]. quicker command in 2 years time !

Of Note , from HKA Facebook site, is that there's now a new recruitment category:

" New- Direct Entry A350 - Hong Kong Licence holder"

However, No link given. Or should I be looged in to FB?

Its separate to the A350 DEFO rated ad, and therefore would indicate DEC / DEFO to none rated crew?

Some KA A330 guys are pricking up their ears ;)

[cxorcist]

So full of crap. It's just not funny anymore. I don't think you even believe the crap you write. COCK! That's all you are.

Strike a nerve? Must be onto something.

[Flex88]

Here is a novel idea and will easily improve the CX/Swire bottom line massively and without spending a penny..

STOP getting Fuc**** sued and spending billions on fines for corruption/price fixing/busting labor/tax laws etc. This will additionally and immediately cut corporate legal fees by about 95% (i.e. 95% of your legal fees are spent trying to defend CX in law suits worldwide)

Just Do It !! :D

"Time to Win" (court cases)

[Uberskyjockey]

The company's position is ridiculous and singling out one group to meet the accountants cost cutting even more ridiculous.
An airline needs pilots. Not caterers, check in, bus divers, secretaries, security, accountants, engineers. These can ALL be out sourced but an airline needs pilots.

[spannersatcx]

The company's position is ridiculous and singling out one group to meet the accountants cost cutting even more ridiculous.
An airline needs pilots. Not caterers, check in, bus divers, secretaries, security, accountants, engineers. These can ALL be out sourced but an airline needs pilots.
gee thanks for giving my job away, love you too! :mad:

[Uberskyjockey]

Let's be clear the attack on FOP means "the pilots'. ISD is not part of FOP so the cabin crew are also being excluded from these proposed cuts. The FOP managers have already been promised their packages will remain intact. The question is why ?

Well, if you were CX management you would tackle the poorest represented, most fragmented, least well informed and most career minded group you could find. Answer pilots.

This year it will be CX pilots and next year CX based pilots and then KA pilots.

They will not take on the FAU who immediately threaten to stop work and this is a lesson the HKAOA refuses to learn. Negotiations require a mutual respect for each others position. The company has ZERO respect for the amateurs in the AOA and consequently will walk all over them and us.

[Avinthenews]

The company's position is ridiculous and singling out one group to meet the accountants cost cutting even more ridiculous.
An airline needs pilots. Not caterers, check in, bus divers, secretaries, security, accountants, engineers. These can ALL be out sourced but an airline needs pilots.

What an odd thing to say.

Sorry spanners he doesn't speak for the majority of us.

[FUANNA]

Every airline is a reflection of the place it originates from.

For many, Donkey Kong has turned into an unsustainable, unaffordable and toxic city.

A place, which is run by a small, corrupt, cleptocratic and incompetent 'elite'.

Now, you do your maths about its future, (and your own) in this dying city (airline).

[stevieboy330]

Dear Anna
Almost half of the Pilots I fly with are looking for another job.
Do you know that & don't care ? or did you not know that ?

[Dan Winterland]

They will care if they have to cancel flights al la Ryanair. It will hit their bonuses.

[Sam Ting Wong]

Curtain,

I never thought I would ever say this, but you are of course absolutely right.

I still am a bit puzzled why you and your friends were after me for 2 years saying precisely over and over what you just said, but ok, water under the bridge.

[Liam Gallagher]

Does "ultracrepidarian" mean "FUAnna"? ;-)

[cxorcist]

Man, it's hard to get the message through to some. One and for all: They do not care. She does not care. Nobody cares.

I care. I know others who do too. Maybe we are the problem???

[goathead]

So what is the policy if one has a job interview? Do I go upstairs and ask for for time off ? What's the policy does anyone know?

[Fool Sufferer]

Excellent summation Curtain rod. Combine your salient points with the structural, competitive and systemic issues, and unfortunately it is self-evident that the once mighty Cathay Pacific now faces an unavoidable and inevitably fatal trajectory.

Do not postpone the exit strategy until it becomes too late.

[Trafalgar]

Curtain and Frank. Thank you both for such illuminating and sadly accurate summations of the death of an airline. Curtain, you have described our management and their moral bankruptcy so well that I won't even try to add to the list. Nothing left to say. What a disgrace this airline has become. As far as their 'threats' go.....bring it on AT. I firmly believe there are more than enough of us ready to ensure that any action you take will bring this airline to a grinding and sudden halt.

[Shep69]

You can't help people who don't want to be helped.

You can not give meaningful advice to people who don't want to listen to you.

You can't fix them. You can only fix you.

[Oval3Holer]

I don't care.

[RAT Management]

Curtain, I hope you put your post in your survey!

[Bob Hawke]

Certain Rod, and Frank Dub-bayou, excellent encapsulation of the decapitation of a dying airline by our thug/incompetent managers. Enjoy your last dying days.

[FUANNA]

Gents, thank you very much indeed for your thoughtful posts.

You're reading this, Anna?!?

[betpump5]

FUANNA

I just got it! How slow am I....

[azhkman]

Every airline is a reflection of the place it originates from.

For many, Donkey Kong has turned into an unsustainable, unaffordable and toxic city.

A place, which is run by a small, corrupt, cleptocratic and incompetent 'elite'.

Now, you do your maths about its future, (and your own) in this dying city (airline).

I think this is mostly true. I think the way the city is operating now, is to create a system that floods the zone with wealthy mainlanders so "the parent" can take control through "legal" means. Then the parent would be able to ignore the 50 Years' Agreement because the citizens voted it so. Kinda like building islands in the middle of the ocean is a lot safer for PR than taking someone else's islands.

The airline could be a reflection of senior pillaging until the perceived inevitable, the ultimate rebranding to Air China HK.

It won't be the end of the world, but the airline and city will never be what they once were.

[propje]

THE REAL REASON CATHAY PACIFIC IS LOSING MONEY
MATTHEW MARCH 16, 2017







Yesterday I wrote about Cathay Pacific’s 2016 reported annual loss. The Hong Kong-based airline blamed weak demand for its premium cabin product and fierce competition from Mainland China as the reason. Although I mentioned that Cathay lost money hedging fuel, one reader took me to task for not focusing on that. So today I will.

Reader Mak wrote (bolding mine)–

I think you’ve got this story exactly backwards thanks to poor press reports about CX earnings, and it is a source of continuing fascination to me that reporters in the financial press don’t know how to read an earnings report. Cathay’s loss has little to do with competition — that is the spin that Cathay’s management is trying to sugarcoat this with. In fact, CX had another huge operational profit this year.

Cathay’s earnings results includes a loss of HK$8.46bn on “hedging” the price of jet fuel — that is, wrong bets that the price of jet fuel would rise. Add this self-inflicted wound back into the report, and you can see that CX’s airline is quite a profitable enterprise, and continues to be so despite competition, etc. The even more shocking thing is that this is the second year in a row that CX has had a loss of this order of magnitude (over US$1 Billion!!) in a row.

You seem to think that CX management would prefer if the loss were caused by operations instead of hedging, but you also have this precisely backwards. Of course, CX management would love to blame competition, and things out of its control for the loss, instead of the reality that management is actually directly responsible for the very foolish choices behind this massive loss.

The real story is that management has been running a commodities hedge fund, instead of running an airline, and have lost vast amounts of their shareholders money in doing so. The scandal is even more acute given that CX shareholders own a minority interest in the airlines, and that management has little or no accountability to them.

You should correct the story so as not to promulgate CX management propaganda, as the rest of the media seem to be doing for them.

Is the Fuel Hedging Really the Primary Culprit?

I want to see raw numbers, but the 2016 annual report has not yet been released. We only have this press release from Cathay, which notes but downplays the fuel hedging program.

The interim 2016 report does state–

Lower fuel prices were partially offset by fuel hedging losses.

The Financial Times reports–

Cathay lost HK$8.46bn on fuel hedges in 2016, roughly on par with the HK$8.47bn hedging loss in 2015, as it continued to pay the price for a decision taken in 2015 to protect itself against what it then feared would be high oil prices.

The airline expects to benefit from lower fuel prices this year but is still forecasting a hedging loss for 2017.

So, the answer is YES. Blame the fuel hedging program. Without that, Cathay Pacific would have reported a healthy profit.

What is Worse?

But what is worse — loss due to fuel hedging or loss to do fierce competition?

Mak asserted, “Of course, CX management would love to blame competition, and things out of its control for the loss, instead of the reality that management is actually directly responsible for the very foolish choices behind this massive loss.”

I still take a different view.

The lack of profits are not due to Cathay’s uncompetitive route network or its service or its seats. Nor is it because of the Mainland carriers squeezing it to the point of unprofitably. No, the problem is just one bad decision on fuel. In 2015, Cathay Pacific executives thought fuel would go up in price — I did too. I’m not a fuel expert (Kyle from Travel Codex is welcome to chime in), but I never thought fuel prices would stay so low for so long.

So they locked in a price that turned out to be too high. That is a strategic blunder. A big blunder that should not be missed. But had it paid off, we would all be hailing them now as geniuses. They missed it. Fine. Hopefully they have learned and will guess correctly next time. The good news is the “fundamentals are sound”. Cathay is still running a lean operation with a great product that is otherwise profitable.

CONCLUSION

Let’s be clear — fuel hedges are the primary culprit for Cathay Pacific’s 2016 annual loss. At the same time, I still view management’s blunder on fuel to be less of a concern that asserting that no one wishes to connect in Hong Kong anymore.

[cxorcist]

There you have it. That's it, that's all. The rest is mere smoke and mirrors. Don't be fooled into conceding your own pay, benefits, and work rules just because they bet the farm on black and the ball landed on red. CX is short of pilots, especially the types that actually know how to fly airplanes. Don't sell yourselves short!

[Uberskyjockey]

Just had lunch with a lawyer mate discussing how he would spend his 24% housing allowance increase ( all cash of course ). His firm desperate to retain quality personnel to keep them number one in the market.

As a commercial lawyer in Hong Kong he assured me that although actual Labour Law in HKG was neolithic, Contract Law was entirely up to date and current compared to world standards. An employee cannot be coerced into signing a new contract if the new terms are deemed ( by the employee ) to be detrimental to his employment or career prospects. The employee can have his current contract terminated ( as per the terms of the contract ) in our case 3 months written notice and on a seniority basis ( ie last in first out ) or by mutual agreement ( ie redundancy buyout ).

Any attempt to force an employee to sign a new contract other than by agreed measures is an offence under Hong Kong Law.

[Veruka Salt]

Well said Uber ..... 'sign or be fired' is an utter fallacy. IF a new CoS is offered, there is no compulsion to sign it. Nor can you be fired for rejecting it.

[TurningFinalRWY36]

But could they give you 3 months written notice on the spot?

[Veruka Salt]

Only in accordance with Para 34.4 of your CoS, or the Employment Ordiance. Neither of which mention termination due 'declining to sign an inferior contract'.

[raven11]

As a commercial lawyer in Hong Kong he assured me that although actual Labour Law in HKG was neolithic, Contract Law was entirely up to date and current compared to world standards. An employee cannot be coerced into signing a new contract if the new terms are deemed ( by the employee ) to be detrimental to his employment or career prospects. The employee can have his current contract terminated ( as per the terms of the contract ) in our case 3 months written notice and on a seniority basis ( ie last in first out ) or by mutual agreement ( ie redundancy buyout ).

Any attempt to force an employee to sign a new contract other than by agreed measures is an offence under Hong Kong Law.

Thank you Uber....my thoughts ...exactly!

If the Company is committed to paying for its fuel hedging mistake by cutting employee costs, then they can do it in accordance with my contract (lay off from the bottom up) and in accordance with Hong Kong and international laws.

[arse]

Dear Anna

You seem very fond of quoting "Industry Standard" as an excuse for reducing our CoS, salaries, housing etc. Have you considered charging passengers for each check in bag? Perhaps HKD$100 for the first bag and then HKD$200 for any subsequent bag? This could replace the fuel surcharge you tried so hard to hang on to. If you are wondering how much such a bag surcharge might make, watch this video:

https://www.youtube.com/watch?v=00wQYmvfhn4

Cut and paste into your browser. Sorry. Related aviation content from 6:30.

Anna: That would make you far more than the 10% you are looking to steal from me.

Sincerely

ARSE

[FUANNA]

Anna,

you are a naughty little girl, aren't you?!

This airline will be annihilated before end of the year.

Merry Xmas,

Your trainers.

[DropKnee]

Anna,

you are a naughty little girl, aren't you?!

This airline will be annihilated before end of the year.

Merry Xmas,

Your trainers.
Now that is funny. The best thing one could do is leave. Just pick up your life and leave. I know I am.

[FUANNA]

Dear colleagues,

please find attached this 'HOW TO' for the weeks ahead:

1.) Identify convenient duty day to call UNFIT DUE FATIGUE ( lack of sleep due stress)

2.) Call unfit on chosen day 2 hours before sign-on

3.) Fax ASR-F form to CX and CAD( optional)

4.) Repeat step 1-3 as required

Or just continue to show up at work fully lubed up ( bring Anna's pineapple).

[FUANNA]

Anna,

there is not an ounce of confidence left in you.

Everything that comes from your desk is mendacious and harmful, increasing the level of stress on our flightdecks to unprecedented levels. There is an accident waiting to happen.

You failed miserably , Anna.

You need to go.

[Trafalgar]

I wouldn't want to be a passenger booking travel over the holiday season. I think it is going to be a bad flu season.

[Bob Hawke]

You’ve gone to far Anna. Enjoy the show.

[Jnr380]

The AOA just called her bulls**t on the Article she quoted.
I've never ever worked for a major airline where that the DFO, fleet office, GMO and GMF actively go out of their way to screw their subordinates!
BTW AT, you want to save some money? don't send 2 x Captains to do a delivery flight! These flights are prefect to work out the crew composition savings of 2 SO's instead a plane full of passengers

[FUANNA]

Dear Anna,

enjoy the last couple of weeks of your employment, since the traveling public in HK will soon demand your scalp after massive flight disruptions and cancellations over Xmas and CNY.

Enjoy the ride, Anna.

[Flex88]

Anna will win this push shove contest, always the way it is in the Orwellian Swire methodology. Sorry folks.
You can as well foresee the outcome by having a look at the hand picked management leftovers following "Project Altitude" now residing on floor #3..
She has surrounded herself with the biggest pack of obsequious sycophants you could ever scrounge up; all of which follow along, riding on her coat tails nodding in unanimous agreement even if not so obviously camouflaged (LeDryBun and his disparaging rhetoric). A spineless self indulgent lot all - you can't fight that kind of "Hammer"..

:sad:

[Amber Vibes]

Anna will win this push shove contest, always the way it is in the Orwellian Swire methodology. Sorry folks.
You can as well foresee the outcome by having a look at the hand picked management leftovers following "Project Altitude" now residing on floor #3..
She has surrounded herself with the biggest pack of obsequious sycophants you could ever scrounge up; all of which follow along, riding on her coat tails nodding in unanimous agreement even if not so obviously camouflaged (LeDryBun and his disparaging rhetoric). A spineless self indulgent lot all - you can't fight that kind of "Hammer"..

:sad:

I respectfully beg to differ. Who cares if she has a bunch of yes-minions running around agreeing with her. Most dictators do. That has zero to do with you and the ability you have to put a stop to this. You do you and let them do them.

[Trafalgar]

Gents (and ladies). Do you see that beautiful and expensive property that Anna owns? You, your children and your salary, pension, medical and housing benefits will be used to pay for that. Now , when are you planning on booking off “unfit”?

[Trafalgar]

And let me be the first to say it. I am planning a visit to her property. Just want to enjoy all she has on offer. 😠.

[DropKnee]

Begun this pilot war has!!

[squarecrow]

Ya, leave a steaming coil on the Sofa.

[FUANNA]

Dear colleagues,

we let the thugs into our houses!

They are snooping around in your cabinets, drawers and children's rooms, looking for valuables.

For now, they are just testing your resistance though....

How far do you let them go?

Are you just standing by, while they are stealing your life in broad daylight?

DO YOUR PART... OR YOUR LIFE HERE IS GONE!!!

[Trafalgar]

It cannot be said often enough: resolve to cause maximum disruption over the holidays. Everyone one of us must take action. Otherwise, be assured that there will be no career left at CX. You will have played a part in your own demise (and that of your families hopes and dreams and security). No group of employees has ever secured terms and conditions just sitting back and allowing themselves to be crushed. Take individual action, thereby allowing the AOA to have some leverage. Otherwise, you will lose everything that a proper aviation career should offer.

[Airbubba]

It cannot be said often enough: resolve to cause maximum disruption over the holidays. Everyone one of us must take action.

Will anything really happen this time? Or, is it still like 2001?

July 16, 2001

Asia's Airline Unions See Little Result
From Following in U.S. Labor Path

By ZACH COLEMAN
Staff Reporter of THE WALL STREET JOURNAL

HONG KONG -- It took 37 years for pilots at Cathay Pacific Airways to vote to take industrial action against the airline.

They may wish they had waited longer.

So far, Hong Kong government officials have restricted their involvement in the Cathay dispute to exhorting the pilots to work out and end their job action. However, the legal environment is formidable enough.

To combat Cathay pilots' work-to-rule campaign -- meant to prompt delays by meticulously sticking to flight safety rules -- the airline has chartered planes and crew from nine other airlines to operate flights on its behalf and cut extended flight legs that are vulnerable to delays. More directly, Cathay has fired 52 of its 1,600 pilots since July 5, including several union leaders and negotiators, and forsaken the collapsed talks with the union by implementing a package of raises and benefit improvements on its own.

"The union has been totally de-fanged by Cathay," says Jim Eckes, managing director of consultancy Indoswiss Aviation in Hong Kong.

Because Hong Kong lacks collective bargaining, the union has no voice to represent pilots up for disciplinary action. Furthermore, employees who participate in union actions during work hours have few legal protections against being fired, according to Wilson W.S. Chow, associate law professor at the University of Hong Kong. The lack of collective bargaining, however, also means the union is not a party to Cathay's pilot contracts and so is free to take industrial action during the term of contract without fear of lawsuit, admits Tony Tyler, the airline's corporate development director.

http://www.pprune.org/50835-post1.html

[Uberskyjockey]

Monday 30th October

[Trafalgar]

Noted.....

[Uberskyjockey]

Pass it on

[FUANNA]

Dear Peter,

I am still trying to digest the contents of the letter you sent out to your trainers yesterday.

Here are a few thoughts for your very own perusal:

First of, If you now ask your trainers to calm the troops, it would have helped hugely to inform us a bit earlier of this incoming corporate '****-sandwich'.

Sorry for being a bit 'emotional' now ourselves, but you probably knew of this mess a bit earlier than reading it in Anna's Friday drivel recently, didn't you?!

Because now, you will also have to deal with a very large group of very disgruntled trainers as well.

Good luck with that.

Secondly, and more importantly: Trainers are pilots. First and foremost.

If you wish to buy our souls, it'll cost you a bit more than the pathetic 10% increment you are paying us at the moment.

Any attempt to pay us 'by-the-hour' like some 'uber-jockeys' will lead to the annihilation of your training department.

Trust me on that.

And lastly, when the jet is on fire, you do NOT 'wind your clock' and sit on your hands to contemplate about life.... you act!

We will act. Rest assured, Peter!

[Air Profit]

I have resisted resigning from training for this very eventuality. You can be certain that any change to my housing, my pension pay or training pay will result in one less trainer. You can also be assured that nearly every one of my colleagues plans on taking the same action.

[Bob Hawke]

Excellent news AP.

[Air Profit]

I will also state with clarity. Above 90% of the people I have flown with this year have stated to me that they are making certain plans to leave. Two trips ago, all three of my crew were doing so imminently. Talk amongst my colleagues reveals the same results. It seems to have escaped senior managements notice that not only are there a multitude of jobs available worldwide, but they don't involve living in a shoe box breathing toxic air and paying hideous prices for basics, such as food. CX has finally pushed their luck too far, and have now opened Pandora's box. Good luck getting that lid closed.

[Air Profit]

And btw. If you have any doubts about the above Anna, perhaps consider that pilots with 11 years seniority, just about to start a Command, would rather leave and start over somewhere else. There has to be something very toxic in this workplace to reach that decision. You are doing an amazing job.:D

[Vermin]

I believe the above when I see it .

Of note is that Cathay Dragon pilots have just received the latest doom and gloom email from Frau Anna :
We must improve returns for shareholders.
We must improve productivity.
We must cut FOP costs.

Lets start with the KA DFO.
2 million hk$ bonus last year. The current incumbent is already licking his lips. And his he1per$.

For the record, The ka HPS is contractually binding. The Ka Rental assistance is contractual. There are less than 200 pilots on this scheme in KA. But most are LHS. And all are a potential hornets nest.

So please CX, foxtrot Oscar. I dont give a flying fu(k about your pax seat revenues. Your stats and pointless graphs.

Its all about your greed for shareholders. And im not buying it . Not for one minute.

[Trafalgar]

I resigned. I know my colleagues are planning the same. ARAPA for all or there will be no training department left.

[Shot Nancy]

What if they increase it for the trainers, and decrease it for the line guys? Then what do you do?

You remain in training and have no buds or you resign from training, in which case I bet the #untz will say you must leave the company.
Great choices.

Oh I forgot: "Time to win".

[Flex88]

Please, do you really think "PC" has any gravitas at all ??? He is nothing more than an ex cadet who as sucked and bullied his way to the top and is now simply a nascient bootlicker who spends most of his time dry humping the DFOs pantsuit leg...
Absolutely pathetic that anyone up there on the 3rd step to DFO Heaven or higher up even asks for his advice. Just shows you how far down the rabbit hole this place has sunk..
It's embarrassing, he's embarrassing, GMFs embarrassing, GMLOs embarrassing and they all give "advice" to DFO. I can't begin to articulate and pen my thoughts on the DFO..
The local Circle K has a better management structure...

[Uberskyjockey]

ALL FOP's managers have been guaranteed their packages will not be affected by next years cuts. For PC to write that he is affected by the proposed ARAPA cuts just like everyone else is ridiculous.
Tonight's impromptu C&T get together at Dacha is just a fact finding mission from management to test the water first hand.
Any free drinks bought will be on the company credit card and that says it all.

[positionalpor]

Here you go:

Do you want to join one of the Fastest Growing Airlines and see your career Take Off?
If so, come join Aer Lingus as a Permanent Direct Entry Pilot!
WHY WAIT APPLY TODAY

We are currently offering a very competitive package which currently includes an incremental starting salary and excellent additional benefits.
Competitive Remuneration Package*:
• Direct Entry Airbus Type Rated: €72,000*
• Direct Entry Non-Airbus Type Rated: €59,000*
*This includes average variable flight associated pay of approximately €18,000
Benefits of the program:
• Contributory Pension scheme
• Extensive concession Staff Travel for you and your loved one

[OK4Wire]

It's "fillipina", and her family isn't so big, not really. And Ireland's warm, right?

[ANTIPHOLUS]

There are Filipina girls in the Faeroes and Reykjavik. Positively tropical by comparison.

[Freehills]

Still, might be worth it for UK passport holders wanting to avoid Brexit issues. In a couple of years, they are shut out of working for non UK airlines is the expectation. If you apply now, might get residency/ right to work in the EU grandfathered in, and fast track to a EU passport

72k euro will probably look quite good in pounds in time...

Of course, given the uncertainty over Brexit, EI might not want to take UK passport holders anyway

[wongsuzie]

There are Filipina girls in the Faeroes and Reykjavik. Positively tropical by comparison.

They are everywhere.

Always talk about 'Pinoy pride' but are quick to abandoned their motherland.

[ANTIPHOLUS]

Aer Lingus is, of course, essentially a LCC. Once a great job, went the way of all SOE’s and became bloated and inefficient requiring regular govt intervention. So totally f@cked over by Joyce, who when finished transplanted the same skills to QF and Jetstar.
As to Pinoy pride, surely they are just trying to better themselves ?
Economic migration; drives much of the various diasporas happening around the world. The LCC on our doorstep has plenty of examples of them.
Grandfathered EU passport. ? Not really how it works !

[CokeZero]

I think AT needs group hug....lets hold hands sing Kumbaya until the crisis is over...Don't you feel good now.(hahaha- idiots)

[FUANNA]

Really, Anna?

You truly believe, that shutting down a roadshow of a tiny recruitment agency will make any difference?

The floodgates are open.

We are walking. CX is history.

[Trafalgar]

It truly shows the depths of their panic. All they've done is highlight the true state of resignations (if there wasn't a problem, why worry about a road show?). As FUANNA says above, MANY are walking (running) and the numbers will soon be debilitating. Anyone who has the chance of a decent career with a home airline would be mad to pass up the opportunity. Or would we be better off chancing our careers/families to the 'good graces' of what is now a proven management inhabited by people who's only management skills are intimidation and lies? :/ Turn the lights out Anna on your way out the door. You will be the only one left here to do so....

[hyg]

Really, Anna?

You truly believe, that shutting down a roadshow of a tiny recruitment agency will make any difference?

The floodgates are open.

We are walking. CX is history.

Honestly, as someone who's not qualified for those Chinese jobs, I still have to say, this has to be a new low by the company... With technology these days, shutting down a close door event like that does nothing:ugh:

[Trafalgar]

It's hilarious in the realisation of how pathetic and futile it is.

[Apple Tree Yard]

HYG. You mention a 'new low by the company'. I agree, but we can be certain they will continue to plumb the depths to new and more cretinous lows.

[FUANNA]

Salut Dominic,

I really missed your arrogant and condescending updates.

Unfortunately, the airline has already crossed the point of no return a while ago.

Also, thanks to characters like you.

The floodgates have opened, and in the weeks ahead, you will witness an unprecedented exodus of pilots.

This trend will only gain further momentum.

For yourself, it is probably time to search for another job too, since there won’t be a lot of aircrew left for you to ‘manage’ in the future.

Bon voyage.

[raven11]

What was the intention of the update...irony or chutzpah?

Let me see if I understand the letter’s conclusion: In addition to the multiple concessions given by the pilots over the past two decades and in an effort to help the Company out of the fuel hedge mess, the association offered two different pay cut proposals that, according to the update, were far short of the cuts expected by management? And...it is the union that is being misleading and intransigent? In what alternative universe does something like that even make sense?

[Farman Biplane]

Do tell bananaman....

[Cpt. Underpants]

https://asia.nikkei.com/Business/Companies/Pilot-shortage-grounds-more-flights-at-Japan-s-Air-Do?utm_source=paid.outbrain.com&utm_campaign=BA%20HK&utm_medium=referral