The Demise of Hong Kong Airlines
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Mainland Chinese Management
An interesting article from the SCMP. Note the references to Hong Kong Express.
Some food for thought for those who are thinking of working for a mainland carrier.
Air China presence in Cathay to show contrast in corporate cultures
Charlotte So
Aug 22, 2009
When Cathay Pacific Airways (SEHK: 0293) executives joined the board of state-owned Air China (SEHK: 0753, announcements, news) after the carrier took a stake in the mainland airline in 2006, they were in for a rude awakening.
Instead of discussing fuel costs, cargo loads or routes, the mainland directors had a much more pedestrian concern - the type of shoes they were wearing.
"The board meeting was conducted in a very informal way and some of the directors were comparing their shoes and exchanging information about the brands," said a transport analyst, who was told about the exchange by a senior Cathay executive.
The incident underscores the huge cultural gap between Cathay - a British colonial icon considered as one of the best-run airlines in the world - and the bureaucratic Air China. While Cathay directors actually have a say in the running of the carrier, directors at mainland airlines are often no more than a rubber stamp for their masters in Beijing.
With Air China this week announcing it would lift its stake in Cathay to almost 30 per cent as part of an eventual plan to take control of the Hong Kong carrier, those differences are about to be writ large. Two more Air China directors are expected to join the Cathay board, bringing the representation to four.
Cathay and Air China come from two radically different corporate worlds. One of the most noticeable differences is the remuneration for top people. Air China chairman Kong Dong has pocketed HK$327,000 from sitting on Cathay's board since May last year - 1.7 times his annual salary at the mainland carrier, according to the company reports.
Zhang Lan, a senior vice-president at Air China, received a HK$529,000 director's fee from Cathay last year. Details of her salary at Air China are not available.
By contrast, Christopher Pratt and Philip Chen Nan-lok, the Cathay executives sitting on Air China's board, received no fee from the mainland carrier. At Cathay, Mr Pratt earned HK$3.46 million as chairman last year while chief executive Tony Tyler received HK$15 million.
Poor compensation at state-owned enterprises is not the only problem for mainland directors. Boards at state-run companies really only have one function - to say yes to the decisions passed down from the ultimate owner in Beijing.
Andrew Tse, who founded Hong Kong Express Airways in 2004, had first-hand experience of this top-down management style after HNA Group, the fourth-largest mainland aviation group, became the carrier's single largest shareholder in 2006.
Hong Kong Express, which is losing millions of dollars a month, applied for a licence to operate a new air-cargo business last month over the objections of Mr Tse, who was concerned the carrier lacked the resources to start freight operations.
"There is no discussion at all ... Whoever is the majority shareholder makes the call," said Mr Tse, who still owns 14.7 per cent of the airline.
In Hong Kong, directors are elected by shareholders at annual general meetings and the management of the company is then appointed by the board. The appointment of senior executives at state-owned enterprises is solely controlled by Beijing.
That may explain the unease being felt at Cathay about the prospects of an Air China takeover. Middle management were more willing to initiate new policy or challenge their bosses if they found decisions were not in the best interests of the company, said one Cathay manager who declined to be named. Such a system would be anathema to a state-run airline.
The cultural differences extend to day-to-day matters. A former executive at Hong Kong Express recalls senior managers communicating with their colleagues by passing around fax paper with notes in red ink. The executive still cannot figure out why the mainland managers did not use the office intranet.
The corporate peculiarities got even stranger earlier this year when cabin crew at Hong Kong Express and sister carrier Hong Kong Airlines were asked to memorise and recite a company creed on command. Staff who failed to recite correctly faced punishment.
While Cathay remains in the hands of Swire Pacific (SEHK: 0019), staff can rest assured they will not be forced to recite a creed anytime soon. But whether Swire remains in control over the long term remains to be seen.
Air China is keen to get its hands on Cathay to boost its international presence and take advantage of the Hong Kong carrier's experience in training and services.
John Slosar, the Putonghua-speaking chief operating officer of Cathay, has reassured staff and investors that the strategy and management would not change despite Air China's increased presence.
At the moment, Air China would probably have to dig pretty deep to further increase its stake in Cathay.
"It remains the firm intention of Swire to remain the single largest shareholder in the airline, as indeed we have been for the past 60 years," Mr Pratt, the chairman of both Swire and Cathay, said last week. "Swire is wholeheartedly committed to the long-term development of the aviation industry in Hong Kong and on the mainland."
Cathay also claims it has a legally binding agreement that Air China has to get the written consent of Swire if it intends to increase its stake to more than 30 per cent.
But in the volatile world of aviation, one should never say never. Swire could change its mind if Cathay encounters another once-in-a-lifetime crisis like the current one it has just flown through. If that crisis was so big that it had to raise funds from its shareholders - Air China and Swire - all bets could be off.
Air China, a state flag carrier with unlimited access to low-cost funding, could easily dilute Swire's holdings if Cathay is in need of a huge amount of capital to pay down debt.
The carrier's net-debt-to-equity ratio increased to 81 per cent from 69 per cent in the first half of the year. Cash outflows of HK$1.2 billion were incurred in the first half because of a HK$2.9 billion cash settlement for fuel hedging losses. The situation is not alarming right now, but if there is any significant reversal in oil price movement, losses could start to mount.
"We have to face the reality that the airline industry is a tough one with very thin profit margins," said Mr Tse, an industry veteran. "The mergers and acquisitions involving airlines in the United States and Europe show that."
Without support from a state-backed carrier, Cathay could lose out under the "open skies" policy that seeks to liberalise routes around the world. Cathay is already losing the one-route, one-carrier privilege on many mainland routes, a protection that was passed down from Hong Kong's former British government.
Hong Kong Dragon Airlines, a subsidiary of Cathay, has a comprehensive network on the mainland but it is reportedly operating at a loss amid fierce competition from mainland carriers.
State-owned mainland carriers have deep enough pockets to increase their fleet and expand their network as part of Beijing's goal of stimulating the nation's economy.
"The room for a purely commercial airline to survive is getting narrower than ever," Mr Tse said.
The mainland is considered one of the aviation industry's growth engines and it would appear Cathay is on the doorstep of a hugely lucrative market. But the cosy position Cathay held in colonial days is truly over.
With cash-rich mainland airlines breathing down its neck and the city's airport seeking closer co-operation with airports in the Pearl River Delta, the road could be even more bumpy ahead for Cathay.
Cathay may be Hong Kong's most recognisable brand. But the world is changing and cultural differences not withstanding, Cathay's future lies more and more across the border.
Some food for thought for those who are thinking of working for a mainland carrier.
Air China presence in Cathay to show contrast in corporate cultures
Charlotte So
Aug 22, 2009
When Cathay Pacific Airways (SEHK: 0293) executives joined the board of state-owned Air China (SEHK: 0753, announcements, news) after the carrier took a stake in the mainland airline in 2006, they were in for a rude awakening.
Instead of discussing fuel costs, cargo loads or routes, the mainland directors had a much more pedestrian concern - the type of shoes they were wearing.
"The board meeting was conducted in a very informal way and some of the directors were comparing their shoes and exchanging information about the brands," said a transport analyst, who was told about the exchange by a senior Cathay executive.
The incident underscores the huge cultural gap between Cathay - a British colonial icon considered as one of the best-run airlines in the world - and the bureaucratic Air China. While Cathay directors actually have a say in the running of the carrier, directors at mainland airlines are often no more than a rubber stamp for their masters in Beijing.
With Air China this week announcing it would lift its stake in Cathay to almost 30 per cent as part of an eventual plan to take control of the Hong Kong carrier, those differences are about to be writ large. Two more Air China directors are expected to join the Cathay board, bringing the representation to four.
Cathay and Air China come from two radically different corporate worlds. One of the most noticeable differences is the remuneration for top people. Air China chairman Kong Dong has pocketed HK$327,000 from sitting on Cathay's board since May last year - 1.7 times his annual salary at the mainland carrier, according to the company reports.
Zhang Lan, a senior vice-president at Air China, received a HK$529,000 director's fee from Cathay last year. Details of her salary at Air China are not available.
By contrast, Christopher Pratt and Philip Chen Nan-lok, the Cathay executives sitting on Air China's board, received no fee from the mainland carrier. At Cathay, Mr Pratt earned HK$3.46 million as chairman last year while chief executive Tony Tyler received HK$15 million.
Poor compensation at state-owned enterprises is not the only problem for mainland directors. Boards at state-run companies really only have one function - to say yes to the decisions passed down from the ultimate owner in Beijing.
Andrew Tse, who founded Hong Kong Express Airways in 2004, had first-hand experience of this top-down management style after HNA Group, the fourth-largest mainland aviation group, became the carrier's single largest shareholder in 2006.
Hong Kong Express, which is losing millions of dollars a month, applied for a licence to operate a new air-cargo business last month over the objections of Mr Tse, who was concerned the carrier lacked the resources to start freight operations.
"There is no discussion at all ... Whoever is the majority shareholder makes the call," said Mr Tse, who still owns 14.7 per cent of the airline.
In Hong Kong, directors are elected by shareholders at annual general meetings and the management of the company is then appointed by the board. The appointment of senior executives at state-owned enterprises is solely controlled by Beijing.
That may explain the unease being felt at Cathay about the prospects of an Air China takeover. Middle management were more willing to initiate new policy or challenge their bosses if they found decisions were not in the best interests of the company, said one Cathay manager who declined to be named. Such a system would be anathema to a state-run airline.
The cultural differences extend to day-to-day matters. A former executive at Hong Kong Express recalls senior managers communicating with their colleagues by passing around fax paper with notes in red ink. The executive still cannot figure out why the mainland managers did not use the office intranet.
The corporate peculiarities got even stranger earlier this year when cabin crew at Hong Kong Express and sister carrier Hong Kong Airlines were asked to memorise and recite a company creed on command. Staff who failed to recite correctly faced punishment.
While Cathay remains in the hands of Swire Pacific (SEHK: 0019), staff can rest assured they will not be forced to recite a creed anytime soon. But whether Swire remains in control over the long term remains to be seen.
Air China is keen to get its hands on Cathay to boost its international presence and take advantage of the Hong Kong carrier's experience in training and services.
John Slosar, the Putonghua-speaking chief operating officer of Cathay, has reassured staff and investors that the strategy and management would not change despite Air China's increased presence.
At the moment, Air China would probably have to dig pretty deep to further increase its stake in Cathay.
"It remains the firm intention of Swire to remain the single largest shareholder in the airline, as indeed we have been for the past 60 years," Mr Pratt, the chairman of both Swire and Cathay, said last week. "Swire is wholeheartedly committed to the long-term development of the aviation industry in Hong Kong and on the mainland."
Cathay also claims it has a legally binding agreement that Air China has to get the written consent of Swire if it intends to increase its stake to more than 30 per cent.
But in the volatile world of aviation, one should never say never. Swire could change its mind if Cathay encounters another once-in-a-lifetime crisis like the current one it has just flown through. If that crisis was so big that it had to raise funds from its shareholders - Air China and Swire - all bets could be off.
Air China, a state flag carrier with unlimited access to low-cost funding, could easily dilute Swire's holdings if Cathay is in need of a huge amount of capital to pay down debt.
The carrier's net-debt-to-equity ratio increased to 81 per cent from 69 per cent in the first half of the year. Cash outflows of HK$1.2 billion were incurred in the first half because of a HK$2.9 billion cash settlement for fuel hedging losses. The situation is not alarming right now, but if there is any significant reversal in oil price movement, losses could start to mount.
"We have to face the reality that the airline industry is a tough one with very thin profit margins," said Mr Tse, an industry veteran. "The mergers and acquisitions involving airlines in the United States and Europe show that."
Without support from a state-backed carrier, Cathay could lose out under the "open skies" policy that seeks to liberalise routes around the world. Cathay is already losing the one-route, one-carrier privilege on many mainland routes, a protection that was passed down from Hong Kong's former British government.
Hong Kong Dragon Airlines, a subsidiary of Cathay, has a comprehensive network on the mainland but it is reportedly operating at a loss amid fierce competition from mainland carriers.
State-owned mainland carriers have deep enough pockets to increase their fleet and expand their network as part of Beijing's goal of stimulating the nation's economy.
"The room for a purely commercial airline to survive is getting narrower than ever," Mr Tse said.
The mainland is considered one of the aviation industry's growth engines and it would appear Cathay is on the doorstep of a hugely lucrative market. But the cosy position Cathay held in colonial days is truly over.
With cash-rich mainland airlines breathing down its neck and the city's airport seeking closer co-operation with airports in the Pearl River Delta, the road could be even more bumpy ahead for Cathay.
Cathay may be Hong Kong's most recognisable brand. But the world is changing and cultural differences not withstanding, Cathay's future lies more and more across the border.
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Cathay Pilots have some real headaches in the future. Good luck.
Green shoots is a term used colloquially to indicate signs of economic recovery during an economic downturn. The first signs are there. No-one know if it will be a fast or flat recovery.
The point is at some point in the near future there will be another pilot shortage, and HKE and HKA will feel it hard. The word is out and no sane pilot will touch them after what has happened recently. They burnt too many, too hard and pilots talk.
Rot in Hell HKE/HKA and the Singas and Hainan who destroyed what was once a very promising company.
intel
Green shoots is a term used colloquially to indicate signs of economic recovery during an economic downturn. The first signs are there. No-one know if it will be a fast or flat recovery.
The point is at some point in the near future there will be another pilot shortage, and HKE and HKA will feel it hard. The word is out and no sane pilot will touch them after what has happened recently. They burnt too many, too hard and pilots talk.
Rot in Hell HKE/HKA and the Singas and Hainan who destroyed what was once a very promising company.
intel
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Instead of discussing fuel costs, cargo loads or routes, the mainland directors had a much more pedestrian concern - the type of shoes they were wearing.
a British colonial icon considered as one of the best-run airlines in the world
With Air China this week announcing it would lift its stake in Cathay to almost 30 per cent as part of an eventual plan to take control of the Hong Kong carrier, those differences are about to be writ large
By contrast, Christopher Pratt and Philip Chen Nan-lok, the Cathay executives sitting on Air China's board, received no fee from the mainland carrier. At Cathay, Mr Pratt earned HK$3.46 million as chairman last year while chief executive Tony Tyler received HK$15 million.
Poor compensation at state-owned enterprises is not the only problem for mainland directors. Boards at state-run companies really only have one function - to say yes to the decisions passed down from the ultimate owner in Beijing.
Hong Kong Dragon Airlines, a subsidiary of Cathay, has a comprehensive network on the mainland but it is reportedly operating at a loss amid fierce competition from mainland carriers.
Cathay Pilots have some real headaches in the future. Good luck
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I'll second that one. One bowl of rice a week and you can stick this place up your jaxie and park your hardware against the fence. We'll all go home, sit on the beach and think of the way things used to be.
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Senior Hong Management gives themselves a PAY-RISE
Yes this is a first post.
No this is not a wind up. This is fact.
I registered a pprune name because for all these years I was a reader not a poster, but something just came to my attention that just needed to be told.
Background, I have a close family member at this company and I have heard about the goings on here on a daily basis. Having been in Hong Kong for nearly 20 years I have alot Asian friends in the industry. Hong Kong in the scheme of things is a small place and aviation is a small world. Someone in the know informed me that the upper managers of HKE and HKA have decided that their doing such a great job they gave themselves a pay rise. 
Nice one Wu and Ronny
So they cry poor, sack the best pilots they have got, slash pilots pay by 50% and show them the door if they do not like it, then buy a few 777's, then give themselves a pay rise because if the HUGE sacrifices they took (see 15% paycut for 4 months)
Talk about breaking every moral, ethical and business management 101 rule there is.
I think this would make a great South China Morning article. "Hong Kong Airlines gives front line employees 50% paycut, and gives themselves a pay rise" Newspaper editors; dont believe me?, Ring Ronal Mcdonal and ask for a statement.
On another note. Here's another brilliant idea from the Singa Thinktank. Employ, train and pay 737 SO's. Yes "S" O's. So they hire nil time pilots, train and endorse them on the 737. They are getting WIDEBODYS you know. They will need these SO's very soon. So the 50+ pilots they have on the payrole for 2 aircraft is not enough. Need SO's
They need to flush more money down the drain and pay for something they do not need.
Whatever the top 10 rules are in business, do the oposite and you have the Singa management team.
No this is not a wind up. This is fact.
I registered a pprune name because for all these years I was a reader not a poster, but something just came to my attention that just needed to be told.
Background, I have a close family member at this company and I have heard about the goings on here on a daily basis. Having been in Hong Kong for nearly 20 years I have alot Asian friends in the industry. Hong Kong in the scheme of things is a small place and aviation is a small world. Someone in the know informed me that the upper managers of HKE and HKA have decided that their doing such a great job they gave themselves a pay rise.
Nice one Wu and RonnySo they cry poor, sack the best pilots they have got, slash pilots pay by 50% and show them the door if they do not like it, then buy a few 777's, then give themselves a pay rise because if the HUGE sacrifices they took (see 15% paycut for 4 months)
Talk about breaking every moral, ethical and business management 101 rule there is.I think this would make a great South China Morning article. "Hong Kong Airlines gives front line employees 50% paycut, and gives themselves a pay rise" Newspaper editors; dont believe me?, Ring Ronal Mcdonal and ask for a statement.
On another note. Here's another brilliant idea from the Singa Thinktank. Employ, train and pay 737 SO's. Yes "S" O's. So they hire nil time pilots, train and endorse them on the 737. They are getting WIDEBODYS you know. They will need these SO's very soon. So the 50+ pilots they have on the payrole for 2 aircraft is not enough. Need SO's
They need to flush more money down the drain and pay for something they do not need.
Whatever the top 10 rules are in business, do the oposite and you have the Singa management team.
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But NO!
According to Mr Flight Deck Wannabe Falconette(who is not even in the industry) and his "trustee" Beijing informant.....the singash!ts are popular and making good progress?????
I hope this does leak to the newspapers because once again there is proof that these selfish uneducated criminals have ruined and displaced families for the sake of being patted on the head by their darklord masters from Hainan. And yet, their 15% payrise doesn't even make them close to being on par with first year F/O's at KA.
Few more years sharing that room at Yat Tung aye??
They owe people money for firing them without just cause. This payrise SHOULD NOT BE ALLOWED until justice is served to those who have been affected by these criminals. But then again, Chinese are known for doing anything, and I mean anything, to make money. So I don't expect anykind of public boycott.
So I have a suggestion, why don't all the snakes show up at the Stars bar for a round of drinks, on them with their new hard earned blood money? Or are there too chicken sh!t? Bring back Wu-zy memories?
According to Mr Flight Deck Wannabe Falconette(who is not even in the industry) and his "trustee" Beijing informant.....the singash!ts are popular and making good progress?????
I hope this does leak to the newspapers because once again there is proof that these selfish uneducated criminals have ruined and displaced families for the sake of being patted on the head by their darklord masters from Hainan. And yet, their 15% payrise doesn't even make them close to being on par with first year F/O's at KA.
Few more years sharing that room at Yat Tung aye??
They owe people money for firing them without just cause. This payrise SHOULD NOT BE ALLOWED until justice is served to those who have been affected by these criminals. But then again, Chinese are known for doing anything, and I mean anything, to make money. So I don't expect anykind of public boycott.
So I have a suggestion, why don't all the snakes show up at the Stars bar for a round of drinks, on them with their new hard earned blood money? Or are there too chicken sh!t? Bring back Wu-zy memories?
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HKE salary increase
Dear Captain WU, Welcome to HKE and thanks for the slight pay rise today.
Not a bad effort on your first day on the job.
There is still a long way to go to get this package right.
First of all allow me to make a few suggestions. Taking on even half of them would have a huge impact on pilot morale, which was beaten to a pulp this year.
• ROSTERING ROSTERING ROSTERING. Get it right. Use it as a tool for free morale boosting. Roster requests. Some guys want hours and money, some want to get hours done in 3 weeks, and then have a week off in Thailand.
• Commuting Roster. Again with just a “little” effort you could roster people to do the average hours a month say… 60 or 70, then give them a week or 11 days off. Costs NOTHING but a little effort.
• Free upgrade to business class when on we are on i.d travel. Why is it such a big issue? Hell just give us a economy meal and we will be happy.
• How about just paying us a package to put us level with our Shenzhen cousins. Or even better pay us the Hainan expat contract. We are Hainan right? This Hainan package recognizes that WE ARE EXPATS and pays for yearly flights home, not to mention the Annual bonuses and far superior package in the lower cost of living mainland. Hong Kong pilots with its high cost of living should be paid more.
• The $50,000 usd non-reducible bond for 5 years, is unfair and excessive. Why not make it reducible?
• Annual leave. As we are not repaid for working public holidays, how about 6 weeks annual leave? This is what most airline companies do. Giving us a DDO on a day of your choosing which is also a mandatory DDO (due to CAD legal rest requirements) is not really fair. Give us 6 weeks off and we are all happy to work any public holiday.
• Annual leave pay. In order to avoid unnecessary court cases and bad publicity, just pay us what is legally required under Hong Kong Law. Paying us base salary for annual leave is not correct. Besides why is it so hard to “do the right thing”?
• Overhaul your HR policy. It is sub standard. Start by “trying” to make staff happy, not “trying” to do anything in your power to make us unhappy.
Most of these things I just thought of on the spot, and they cost the company NOTHING, yet would greatly motivate and reduce pilot turnover. The items such as pay increases actually cost the company less if you LOOK AT THE BIG PICTURE. I realize it is not typical for Asian culture but think outside the square. Lowering the pay down and reducing conditions of service does not save you a thing long term. Did you know every pilot that was either fired or leaves of their own accord costs the company in excess of usd $250,000 usd +. Now you have to hire and train another guy with less experience.
The financial crisis will end eventually. Now is the time to regroup and regain some of the trust you lost last time. If the company made some steps in a positive way, they would be paid back 4 fold in morale and productivity increases.
Here are some free lessons from the masters. Southwest Airlines.
Southwest employees were among the highest paid in the industry and the company enjoyed low employee turnover relative to the airline industry. Southwest Airlines is one of the world’s most profitable airlines, posted a profit for the 36th consecutive year in January 2009.
[http://mba.tuck.dartmouth.edu/pdf/2002-2-0012.pdf
HKE should try it.
Perhaps this should be mandatory reading for all your upper management.
The Southwest Airlines way: using the power of relationships to achieve high performance
The Southwest Airlines way: using ... - Google Books
So I guess it proves that screwing everyone over does not get results and profit, but looking after your staff does. Hainan, you have a lot to learn. I hope you choose the tried and tested method and look after us a little better.
Regards
Not a bad effort on your first day on the job.
There is still a long way to go to get this package right.
First of all allow me to make a few suggestions. Taking on even half of them would have a huge impact on pilot morale, which was beaten to a pulp this year.
• ROSTERING ROSTERING ROSTERING. Get it right. Use it as a tool for free morale boosting. Roster requests. Some guys want hours and money, some want to get hours done in 3 weeks, and then have a week off in Thailand.
• Commuting Roster. Again with just a “little” effort you could roster people to do the average hours a month say… 60 or 70, then give them a week or 11 days off. Costs NOTHING but a little effort.
• Free upgrade to business class when on we are on i.d travel. Why is it such a big issue? Hell just give us a economy meal and we will be happy.
• How about just paying us a package to put us level with our Shenzhen cousins. Or even better pay us the Hainan expat contract. We are Hainan right? This Hainan package recognizes that WE ARE EXPATS and pays for yearly flights home, not to mention the Annual bonuses and far superior package in the lower cost of living mainland. Hong Kong pilots with its high cost of living should be paid more.
• The $50,000 usd non-reducible bond for 5 years, is unfair and excessive. Why not make it reducible?
• Annual leave. As we are not repaid for working public holidays, how about 6 weeks annual leave? This is what most airline companies do. Giving us a DDO on a day of your choosing which is also a mandatory DDO (due to CAD legal rest requirements) is not really fair. Give us 6 weeks off and we are all happy to work any public holiday.
• Annual leave pay. In order to avoid unnecessary court cases and bad publicity, just pay us what is legally required under Hong Kong Law. Paying us base salary for annual leave is not correct. Besides why is it so hard to “do the right thing”?
• Overhaul your HR policy. It is sub standard. Start by “trying” to make staff happy, not “trying” to do anything in your power to make us unhappy.
Most of these things I just thought of on the spot, and they cost the company NOTHING, yet would greatly motivate and reduce pilot turnover. The items such as pay increases actually cost the company less if you LOOK AT THE BIG PICTURE. I realize it is not typical for Asian culture but think outside the square. Lowering the pay down and reducing conditions of service does not save you a thing long term. Did you know every pilot that was either fired or leaves of their own accord costs the company in excess of usd $250,000 usd +. Now you have to hire and train another guy with less experience.
The financial crisis will end eventually. Now is the time to regroup and regain some of the trust you lost last time. If the company made some steps in a positive way, they would be paid back 4 fold in morale and productivity increases.
Here are some free lessons from the masters. Southwest Airlines.
Southwest employees were among the highest paid in the industry and the company enjoyed low employee turnover relative to the airline industry. Southwest Airlines is one of the world’s most profitable airlines, posted a profit for the 36th consecutive year in January 2009.
[http://mba.tuck.dartmouth.edu/pdf/2002-2-0012.pdf
HKE should try it.
The Philosophy. (1) leading with credibility and caring, (2) investing in frontline leadership, (3) hiring and training for relational competence, (4) using conflicts to build relationships, (5) bridging the work/family divide, (6) creating boundary spanners, (7) measuring performance broadly, (8) keeping jobs flexible at the boundaries, (9) establishing partnerships with the unions, and (10) building relationships with suppliers. Each of these practices is designed to build relationships of shared goals, shared knowledge, and mutual respect within the company and with its external partners, and together they have enabled Southwest to achieve industry-leading levels of both quality and efficiency. Thus, the primary lesson is that relationships are not just a nice addition to the hard factors, but are powerful drivers of organizational performance, if they are consistently integrated into organizational practices over the long term.
The Southwest Airlines way: using the power of relationships to achieve high performance
The Southwest Airlines way: using ... - Google Books
So I guess it proves that screwing everyone over does not get results and profit, but looking after your staff does. Hainan, you have a lot to learn. I hope you choose the tried and tested method and look after us a little better.
Regards
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The $50,000 usd non-reducible bond for 5 years, is unfair and excessive. Why not make it reducible?
Considering it is not recoverable under hong kong law, ask the primates at HKA how many 100,000USD their racism cost the company.You forgot sick leave, HKA were peddling 2 days/month non-accruable, as with most things those morons did, below the minimum HK labour ordinance, and a galaxy away from most Airlines ( yes I know, HKA/HKE are not airlines, they are bus companies with jets )
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Has wu broken HKE yet? If not give him a few weeks before his next wave of brilliance.
Perhaps madam wu is continuing with his original plan to detroy a perfectly good company and turn it into another HKA? Leaving the wages so low and just watching all the pilots go to greener pastures and not being able to replace them fast enough. Yeah that will do it. What a brilliant mind.
Good luck to all the guys. On the upside, you will get some good over-time in the period between now and total failure due crewing.
Perhaps madam wu is continuing with his original plan to detroy a perfectly good company and turn it into another HKA? Leaving the wages so low and just watching all the pilots go to greener pastures and not being able to replace them fast enough. Yeah that will do it. What a brilliant mind.
Good luck to all the guys. On the upside, you will get some good over-time in the period between now and total failure due crewing.
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Hke stepping Stone said in post #739 of this thread.
“ Free upgrade to business class when on we are on ID travel. Why is it such a big issue? Hell just give us a economy meal and we will be happy.”
Well on another Asian carrier I remember travelling as “additional crew member” in business class. When lunch was served my seat mate looked at his business class meal and then looked at my “crew meal” and said to me, “Your meal doesn’t look very good , you should complain about that.” Since the procedure for ACM was that they would travel incognito, I could think of no suitable reply (any ideas anyone?) but I think this passenger might have thought that this time he was lucky, but was concerned that on his next trip with this airline he would only get a meal similar to mine.
“ Free upgrade to business class when on we are on ID travel. Why is it such a big issue? Hell just give us a economy meal and we will be happy.”
Well on another Asian carrier I remember travelling as “additional crew member” in business class. When lunch was served my seat mate looked at his business class meal and then looked at my “crew meal” and said to me, “Your meal doesn’t look very good , you should complain about that.” Since the procedure for ACM was that they would travel incognito, I could think of no suitable reply (any ideas anyone?) but I think this passenger might have thought that this time he was lucky, but was concerned that on his next trip with this airline he would only get a meal similar to mine.
Join Date: Mar 2009
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I got as pm from a guy who shows interest in a job as an F/O at HKA/HKE. He asked my opinion, and I will share here for others considering a job there.
I can answer some of your questions. 3 F/O's already resigned. Due to leave in a month.
This company is only good as a place to get experience and move to greener pastures. But ONLY if you can not get any other jet job. Go there, get a few hours and always have applications in elsewhere to move on. Find out about the BOND. 5 YEARS! 50,000 USD. That is way too much for a 737. When you get the new job, do not resign, just do not show up to work. Do not even bother saying goodbye. Just pay your tax before hand and leave.
If you get hired there do not expect anything they tell you in the interview to be true. They are a bunch of Liars. Just go there, live cheaply get experience and get another job. Never stay for the promise of a command because it will not happen. Plan to live on receiving 35,000 HKG dollars a month. This is tight in Hong Kong as it is expensive. Rents are going UP at the moment. You might be an expat but you’re not on expat conditions. You pay for you own ticket home. You receive half pay during annual leave, which is illegal but the guys still employed are too scared to peruse it. Medical is a joke. Provident fund is a joke. Housing allowance is non existent. Morale is low, people are unhappy. Pay is not competitive with other Asian airlines.
Do not be surprised if you move your family and furniture here and they change the deal. "Oh sorry we are not ready for you, no pay for 3 months" or something like that. Or "Sorry we will pay you S/O wages for 12 months, take it or leave it, oh and if you do not like it you owe us $50,000 training bond" This is the sort of thing they do. They have no morals and are totally dishonest.
I highly recommend you stay in your current job and wait for the upturn in the economy and airline hiring. HKA HKE is way too amateur and they lack common human decency.
This company is only good as a place to get experience and move to greener pastures. But ONLY if you can not get any other jet job. Go there, get a few hours and always have applications in elsewhere to move on. Find out about the BOND. 5 YEARS! 50,000 USD. That is way too much for a 737. When you get the new job, do not resign, just do not show up to work. Do not even bother saying goodbye. Just pay your tax before hand and leave.
If you get hired there do not expect anything they tell you in the interview to be true. They are a bunch of Liars. Just go there, live cheaply get experience and get another job. Never stay for the promise of a command because it will not happen. Plan to live on receiving 35,000 HKG dollars a month. This is tight in Hong Kong as it is expensive. Rents are going UP at the moment. You might be an expat but you’re not on expat conditions. You pay for you own ticket home. You receive half pay during annual leave, which is illegal but the guys still employed are too scared to peruse it. Medical is a joke. Provident fund is a joke. Housing allowance is non existent. Morale is low, people are unhappy. Pay is not competitive with other Asian airlines.
Do not be surprised if you move your family and furniture here and they change the deal. "Oh sorry we are not ready for you, no pay for 3 months" or something like that. Or "Sorry we will pay you S/O wages for 12 months, take it or leave it, oh and if you do not like it you owe us $50,000 training bond" This is the sort of thing they do. They have no morals and are totally dishonest.
I highly recommend you stay in your current job and wait for the upturn in the economy and airline hiring. HKA HKE is way too amateur and they lack common human decency.
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Intelligent pilot
That is one of THE most accurate posts on here !
But 50K USD for endorsment ? Gee, that has increased considerably.
Since most of the pilots knew the endo was around 22K USD, I guess the swim in the pool, the EPs and the CRM course have gone up considerably ( they used to give you a bill for around 30K USD when you left, which is not recoverable under HK law anyway )
Not wrong there, if 35K is the current F/O pay, that is around 1/2 KA F/O pay ( not taking into account housing, which is up to 10 times HKA housing )
Hope you got out of thathole
That is one of THE most accurate posts on here !
But 50K USD for endorsment ? Gee, that has increased considerably.
Since most of the pilots knew the endo was around 22K USD, I guess the swim in the pool, the EPs and the CRM
course have gone up considerably ( they used to give you a bill for around 30K USD when you left, which is not recoverable under HK law anyway )
Pay is not competitive with other Asian airlines.
Hope you got out of that
hole
Live in the mainland
Hi Guys,
Reading all your posts i understand but im really eager to go to hke and get a gig!Ive lived on the mainland now for 4 yrs Bj and if i could live in Shenzhen and commute to work what a great easy life!Great living standards just up the road for 10-13,000rmb a month honestly i cant see the problem and still tucking away plenty of savings.Of course lifestyle versus salary in hk dont weigh up so can you ask for a mainland basing since the powers to be are mainland based?
Reading all your posts i understand but im really eager to go to hke and get a gig!Ive lived on the mainland now for 4 yrs Bj and if i could live in Shenzhen and commute to work what a great easy life!Great living standards just up the road for 10-13,000rmb a month honestly i cant see the problem and still tucking away plenty of savings.Of course lifestyle versus salary in hk dont weigh up so can you ask for a mainland basing since the powers to be are mainland based?