2017 Annual report - lol
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2017 Annual report - lol
So - Cathay have stopped showing how much directors are paid, unless they are on the board. So no more being able to see AT or TO housing! To be fair, it is only a 'recommendation' from HK listing rule to disclose their pay, vs legally you have to for the board directors
Both RH and the finance director do seem to have taken no bonuses, so an overall significant pay cut of 20-30%.
Other highlights -
CX reimbursed Swire 169m HKD for the benefit of their management expertise
As far as I can tell, pilot attrition was c6% (across CX/KA)
(36 more pilots to total of 3,930, recruited 200, and 72 cadets, so that means 240 or so must have left)
Both RH and the finance director do seem to have taken no bonuses, so an overall significant pay cut of 20-30%.
Other highlights -
CX reimbursed Swire 169m HKD for the benefit of their management expertise
As far as I can tell, pilot attrition was c6% (across CX/KA)
(36 more pilots to total of 3,930, recruited 200, and 72 cadets, so that means 240 or so must have left)
Last edited by Freehills; 3rd Apr 2018 at 10:22. Reason: edited because I can't do maths - 6% attrition, not 7
Things are looking rosy according to the Chairman
"The new management team is acting decisively to make Cathay Pacific and Cathay Dragon better airlines and stronger businesses, delivering more to customers with improved productivity. We are confident that we are on the right track to achieve strong and sustainable long-term performance, with a leaner, more competitive business, while enhancing the brand and the quality of services that our customers deserve and expect. These services are always delivered by our people, who remain dedicated in these volatile times. I would like to thank them for their hard work and commitment."
Fuel hedging losses = HK$ 3,237 million in 6 months
Loss of HK 52.1 cents per share.
No dividend declared.
I'm a shareholder, I vote time is overdue for new management.
"The new management team is acting decisively to make Cathay Pacific and Cathay Dragon better airlines and stronger businesses, delivering more to customers with improved productivity. We are confident that we are on the right track to achieve strong and sustainable long-term performance, with a leaner, more competitive business, while enhancing the brand and the quality of services that our customers deserve and expect. These services are always delivered by our people, who remain dedicated in these volatile times. I would like to thank them for their hard work and commitment."
Fuel hedging losses = HK$ 3,237 million in 6 months
Loss of HK 52.1 cents per share.
No dividend declared.
I'm a shareholder, I vote time is overdue for new management.
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I have not reviewed a copy of the report yet. For clarification, when you say "no bonuses paid", do you mean RH received no bonus from EITHER CX or Swire, or just no bonus from CX? I suspect his remuneration has been made up in other ways if he didn't receive a bonus from CX.
Comical how they drop the housing allowance for AT. I guess we weren't supposed to notice that one. By attempting that sleight of hand, they have really just highlighted even more the hypocrisy of their efforts.
Comical how they drop the housing allowance for AT. I guess we weren't supposed to notice that one. By attempting that sleight of hand, they have really just highlighted even more the hypocrisy of their efforts.
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So, approximately 240 have left in a year. An average of almost 5 per week. A healthy "major" airline does not lose that many pilots in a year, and in our case, nearly all to resignation and not retirement. Funny thing is, I don't remember reading about 240 pilots being bade farewell in AT's weekly newsletters 
(and that 240 number will be much higher for this year, as the exodus has only just started to gain momentum. Hill/snowball).
(and that 240 number will be much higher for this year, as the exodus has only just started to gain momentum. Hill/snowball).
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The other realisation that needs to sink in is that a large percentage of that 240 would have been on average quite experienced. The replacements for the most part have NO experience. An airline that begins down that road has only one possible destination, and that is the front page of the worlds newspapers.
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I have not reviewed a copy of the report yet. For clarification, when you say "no bonuses paid", do you mean RH received no bonus from EITHER CX or Swire, or just no bonus from CX? I suspect his remuneration has been made up in other ways if he didn't receive a bonus from CX.
Comical how they drop the housing allowance for AT. I guess we weren't supposed to notice that one. By attempting that sleight of hand, they have really just highlighted even more the hypocrisy of their efforts.
Comical how they drop the housing allowance for AT. I guess we weren't supposed to notice that one. By attempting that sleight of hand, they have really just highlighted even more the hypocrisy of their efforts.
They didn’t just drop showing the allowance for AT - they dropped showing any of the compensation of anyone not sitting on the board!
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With the history of this managements misdeeds, dishonesty and outright corruption, does anyone really believe that the likes of RH and AT won't be obtaining compensation at some point for the last years "performance" ? Answers on a tiny postcard please.
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Hey Everyone, just a friendly reminder to pay the remainder of your tax bills this week. Just dip into all that 13th month bonus money and write that cheque 
. Remember to thank RH and AT in the coming weeks/months in the best way you know how. Happy low bank balance day. (as a small reminder of why there can be NO talk of concessions at any coming pay talks, that equated to a 9 % pay cut for every Captain this past year, never mind the fact that inflation has taken another several percentage points off as well. Call it a round 12-15% cut in total year on year).
. Remember to thank RH and AT in the coming weeks/months in the best way you know how. Happy low bank balance day. (as a small reminder of why there can be NO talk of concessions at any coming pay talks, that equated to a 9 % pay cut for every Captain this past year, never mind the fact that inflation has taken another several percentage points off as well. Call it a round 12-15% cut in total year on year).
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Training Department
Instructors over there already walking away and looking for other work. Who wouldn't under those circumstances ?
The "Screaming Skull" backed by PC & AT can't wait to add that little cost saving exercise to their bonus calculation.
Screaming Skull came back as he didn't quite feel he had done enough damage previously so, as you would expect, approached the Senior Leadership for one more kick at the cat to make himself feel fulfilled - screw everybody else.
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You’ve got to love the SCMP article. Almost makes RH sound like he’s a martyr 🤮. I will be interested to hear what his Swire bonus is as opposed to his CX one. Believe me, this whole exercise is nothing more than propaganda to keep the cabin and ground staff quiet. People at his level NEVER lose out. Of that you can be certain.
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Amen!!! So true. You’d have to be retarded to sign up for a training and/or management job right now. Social suicide. Ethically devoid. Borderline scab. Intellectually absent.
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Thought I would repost this precise from another contributor (with thanks for their efforts) A worthwhile reminder to my colleagues:
Cathay penny and pound foolish:
Cost of Captain's Bonus Expressed in kgs of Fuel per Flight
(All values in HK$)
$35,000 x 950 Captains = $33,250,000 (US $4,290,323)
Average number of flights per year: 172,000 (Cathay Online Fact Sheet)
Average amount of bonus per flight: $193.31 (US $24.94)
December 2017 Jet-A Price per Litre: $4.10
Fuel Price per kilogram: $5.25
Cost of bonus in kgs of fuel per flight: 36.8 kgs
It's hard to quantify these things precisely, but my instinct tells me that the difference in fuel savings between highly motivated pilots and those who feel demoralized would be significantly greater than 37 kgs of fuel per sector.
Using the B777-300ER as an example:
- one minute in the cruise is equal to about 100 kgs
- one minute of taxi uses about 33 kgs
A highly motivated flight crew using every trick in the book could probably save in the order of 200 to 1,000 kgs per flight depending on the circumstances.
Judging by the tone of the posts contained within this thread, our Captains feel very betrayed and I sense that their motivation is at an all-time low. If I am correct, then the attempt to save HK $33,250,000 (US $4,290,323) may actually result in losses that are several multiples greater than the initial amount saved.
Cathay penny and pound foolish:
Cost of Captain's Bonus Expressed in kgs of Fuel per Flight
(All values in HK$)
$35,000 x 950 Captains = $33,250,000 (US $4,290,323)
Average number of flights per year: 172,000 (Cathay Online Fact Sheet)
Average amount of bonus per flight: $193.31 (US $24.94)
December 2017 Jet-A Price per Litre: $4.10
Fuel Price per kilogram: $5.25
Cost of bonus in kgs of fuel per flight: 36.8 kgs
It's hard to quantify these things precisely, but my instinct tells me that the difference in fuel savings between highly motivated pilots and those who feel demoralized would be significantly greater than 37 kgs of fuel per sector.
Using the B777-300ER as an example:
- one minute in the cruise is equal to about 100 kgs
- one minute of taxi uses about 33 kgs
A highly motivated flight crew using every trick in the book could probably save in the order of 200 to 1,000 kgs per flight depending on the circumstances.
Judging by the tone of the posts contained within this thread, our Captains feel very betrayed and I sense that their motivation is at an all-time low. If I am correct, then the attempt to save HK $33,250,000 (US $4,290,323) may actually result in losses that are several multiples greater than the initial amount saved.
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As an aside to the above. The cost of the bonus equated to $25 usd / flt. Can a single Captain in this airline deny that since December, our focus on 'safety' has probably resulted in 3 - 4 X that amount per flight. I am very safe....
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I used to avoid thunderstorms using the minimum deviation possible , not any more , I used to check the winds at higher altitude with other aircraft in the vicinity to get the best possible fuel consumption . Not any more . I used to always operate at or as close to optimum levels as possible . Not any more
I used to take the first available hsto after landing for a shorter taxi . Not any more . I used to employ RETI as soon as possible . Now I couldn’t be bothered
The list goes on and on ,
I no longer care about fuel saving , passenger comfort has become my mantra . If it’s turbulent descend to a level with smooth air , never call visual only accept radar vectors , always configure early I don’t want to ping an FDAP
I used to take the first available hsto after landing for a shorter taxi . Not any more . I used to employ RETI as soon as possible . Now I couldn’t be bothered
The list goes on and on ,
I no longer care about fuel saving , passenger comfort has become my mantra . If it’s turbulent descend to a level with smooth air , never call visual only accept radar vectors , always configure early I don’t want to ping an FDAP