Message From the CEO
 

After everyone reads the eMail/Article, consider the events that have lead CX to this point.

The Peter Principle has come home to roost big time !!
If you are not aware of this principle - check out the link below:

Peter Principle Definition | Investopedia

Consider these situations/ "innovations" in regard to the CEO's note - and who is responsible:
- Fuel Hedging:rolleyes:
-New aircraft sitting on ramps delivering NO revenue "no seats" :ooh:
- Industrial Lawsuits "worldwide" :=
- Cathay Defamed pilots - pays 56 Million dollars in compensation
- Cargo Price Fixing Lawsuits/Fines - approx 1 "billion" in fines over the years from at least 4 countries
- The cost of the latest change; Personnel Department "re-branding" to become "People Department" (are you kidding - this was the new "directors" first move on getting posted to new position) :yuk:
- The cost of Re-Branding - "Cathay Dragon" (millions !!)
- New signage being installed at CX City ??
-iPads that will become surplus as "they are NOT the right "solution" for us..:ugh:
-"Someone (i.e. CX CEO ?)" actually signed off & paid for the "Life Well Travelled" ad Campaign
The list could go on and on - please add.

Mr Peter must have worked at CX and completed his Doctorate thesis on his experience.

You just can't make this stuff up.....:sad:

OMG, this is Cathay!

are you guys seriously complaining about a cockpit in a lobby. hahaha geeze you guys make me laugh

I don't think that's what we are complaining about actually, it is just one of a number of things some of which have been highlighted already that highlight the disgrace this place has become and the fact the so many people who have invested their careers and life into this place, ground staff included, are helplessly sitting here watching managers completely destroy what should be a cash cow and believe it or not, a proud and happy place to work. Imagine that

As Healy says. Symptomatic of the disconnect between the mangers (sic) and the staff who make it happen. Truly fiddling while Rome burns.
Why would they spend money on a "cockpit" in Abu Graib (aka The Headland Hotel) - where no-one gives a Rodent's Behind what trinket they have on display - when there are so many dysfunctional elements in FOP that should (must) be rectified at little or no cost at all?

They blame the loss of revenue on the world economy.

I blame it on the degradation of the once-best-in-the-world product.

They reduced the quality of the product with the intent of making more money.

Instead, passengers were not willing to pay the same price for a lesser product, so the ticket prices were lowered. Less revenue requires a reduction in costs (lowering the quality of the product) and the spiral continues.

Pan Am, anyone?

The CEO and the CFO should be sacked for entering a multi year fuel hedge by taking a Naked Hedge position.

Criminal!!!

DEFINITION of 'Naked Position'
A securities position that is not hedged from market risk. Both the potential gain and the potential risk are greater when a position is naked instead of covered (a covered position is hedged from market risk).

BREAKING DOWN 'Naked Position'
If an investor simply holds 500 shares of Ford, he or she has a naked position in Ford. If the investor wanted to cover this position, he or she could buy put option contracts, which would help protect against downward movements in the price of Ford shares.

Whether to have a naked position is rarely a concern for most small investors, but it is a concern for large investment holders and institutions.



Read more: Naked Position Definition | Investopedia Naked Position Definition | Investopedia

SLS anyone?

Exactly Frank! What a load of complete BS, they are losing billions through hedging losses. Take that away and we would be having a record year.

Don't believe their lies, only there to cover up their own incompetence.

There was Ivan the Great, Ivan the Terrible and we get Ivan the clueless. If we are really in trouble then don't we want to be part of the solution? We, as a body, are proud and proficient. We cannot control what Swire does to the clowns that put us here but do we help or hinder? We are not in an unrecoverable position, just an embarrassing one. If we see a sea change in our management eg actually providing a 'Premier' product etc should we lend a hand? I will leave myself open to the pit bulls but I don't care about them.

If what CEO said that we are so F&^ed up, then what are consultants like m@dd0g are on our pay roll? I am sure there are bigger doggie biscuits out there

say goodbye to 13th month, this is will be used as justification

http://compforce.typepad.com/.a/6a00...bf0b970b-400wi


As far as I know, pay cuts and furlough usually start from the top.
WHAT ABOUT A PAY CUT FROM THE CEO FIRST BEFORE ANY OTHER FINANCIAL DISCUSSION?

I find it comical. The most inept management team in the airlines history has finally proved beyond doubt of that fact. Now, the usual propaganda begins. From someone who has been here many years, I suggest simply ignore it. The predictable talk about 13th month or SLS and all the other 'threats'. Funny how most of our competitors are making record profits these days....heck, even Qantas is !! As a soviet union farmer once said: "they pretend to pay me and I pretend to work". The same philosophy will apply here. And Ivan, two things: 1) 13th month - if you think you have a disgruntled and non-coperative workforce now....go for it, and welcome to hell. 2) if you think you can shove another SLS down our throats, mainly because of your own managers magnificent fuel screw up, you know where you can stick your request. I fell for that scheme twice...I won't let there be a third time.

Hard to disagree with any of that, Traf..

What a farce.

I think we can all agree that if profits had been down or heaven forbid we posted a loss due to external market conditions then we could accept the loss of 13th month. But when our losses are due to internal decisions to degrade the product and fuel hedging then taking away 13th month would be a very poor choice

Not to mention that most of the pilot staff now are on much lower wages than years ago, without housing and other benefits. To strip the 13 month away would be the final slap in the face. At least it would provide a wake-up call as to the foolishness of staying around and making a career of things here....

There is only one choice for the board
Off with his head
When is enough , enough?
Too much inbreeding will always bring critical failure at some stage....

"when the tide goes out, you can see who was swimming naked"

Maybe time for Swire to put their hand in their pocket and pay for a turnaround CEO. Mueller's just joined EK, but Alan Joyce might be up for it, purely for the irony of CX opposing Jetstar HK...

As it looks like 13th month is unlikely given the tone of that update perhaps we, the pilots, should pre-empt this and offer our 13th month for the hiring of an external non swire CEO, roughly HKD180,000,000 should attract a top notch manager. I would be happy to do it and would be a far better investment than continuing this head banging with current negotiating. Would pay off in the end.

Freehills,

That would be a disaster for us if someone like that was hired. The sign or be fired letters would be in our mailboxes quicker than you can say "losing money on fuel hedging is actually a good thing"

No way a non swire guy is getting the job anyway

It's always disappointing to see fear and weakness displayed publicly. The only freedom any of you will have is when you value your own self worth more than a paycheque. Especially a paycheque from a company that doesn't respect you or value you. You would be far better warning them what your actions will be if they steal the 13th month away from you and your families.

And yet somehow in this dire world economy.......


http://mobile.nytimes.com/aponline/2....html?referer=

Wow, another year, another bunch of retards on PPrune worried that we won't get our 13th month. It's as if you actually believe the propaganda coming out from the 9th floor.

I guess you must also believe that it has nothing to do with management's huge fuel gambling fiasco. It *must* be a revenue problem. That revenue has nothing to do with the fact that our competition can offer cheaper tickets and grow faster because they are paying nearly 50% less for their largest expense than we are.

So we are left with either 1) senior management once again are trying to shield themselves anyway possible from their appalling fuel gambling screwup or 2) they are actually so naive and stupid that they may actually believe what they are saying.

Either way CX's fortunes won't turn around until they completely clean house, starting from the 9th floor and ending after the 3rd.

Reward and responsibility are totally divorced from accountability in Swire - why?

My lord he doth protest too much that it is not fuel hedging that is the cause of his 'very difficult job'.

I think he actually said he has the toughest CEO job in Hong Kong......

http://m.scmp.com/news/hong-kong/eco...-best-yet-come


With AOD testing about to start, stay even further away from 9th floor than normal. The second hand smoke from whatever Ganga their chuffing up there will definitely put you over

The three most addictive things in the world:
1. Alcohol
2. Tobacco
3. A Steady Paycheck

As much as I like flying CX and do it when works pays for it, it makes no sense for leisure travel unless it is the only option. The prices are not competitive. And if they are, you don't receive full miles benefits, so why bother? That part makes the others more competitive if you are not earning status anyways.

The pilots seem to do ok flying the plane, most have good humor from the front on the announcements (except for BW on a PER/SYD flight), and the FAs are good. But the seat quality in coach on regional is abysmal, and the inflight dining has degraded tremendously in my 10 years in HK next month.

Is RA doing anything at the moment he can't be pulled away from?

RA?
Reg Ansett?

Would have to exhume him and prop him up in the corner of the board room.
Certainly sounds like a step in the right direction.


This fuel purcase fiasco (it wasn't a hedge when it's 60 perecent of total fuel purchased) will make aviation folklore. It's right up there with Delta Airlines buying an oil refinery.
But hey, why not? Win and "management" reward themselves with even greater bonuses. Lose and simply charge your customers and staff.
It's no wonder Ivan the invisible is reluctant to change policy. Why would he?

My guess is that the fuel hedging was not managements' fault, but a decision taken at the ownership level.

That would explain why CEO or CFO have not been fired, and why they are so keen to say that fuel hedging is not the problem

This, exactly.

It is a sad indictment of the Swire culture that such an epic level of incompetence, that has put the company and it's employees at risk is not addressed in any fashion, other than a mealy-mouthed watered down 'explanation' that they don't 'speculate' on fuel hedging ! Once again, they are taking us all for fools. A properly run and accountable public company in any other part of the first world would have seen the CEO out on his ear (see Wells Fargo bank in the US this week). It doesn't matter if it isn't personally the CEO's fault, the accountability has to start at the top. In this sad excuse of an airline, it ONLY starts at the very bottom, and stays there. Without the hedge, there would have been at least half a BILLION more in profit. We all have worked hard and responsibly throughout the year. The cost of the hedge should be taken directly from the managers pockets. Not the employees who had NO input. I have rarely been as disgusted with the mismanagement of this airline as I am now. What on earth have we done to be saddled with the likes of JS, IC, AT and all the other miscreants that we are being abused by? :confused:

Spot on, il bet they got a massive bonus when this started for their brilliant idea!!!!!

You are welcome to Alan Joyce and you can have the new uniform as well!!!!!!

I am sure that a proper turnaround CEO wouldn't be comfortable for anyone in CX, crew included. But the issues are concentrated in Cathay City, not in the cockpits, and if the trade off is a solid airline that can compete with the best of them for the future, well, the crews have more interest in that than anyone else.

They want to reduce costs yet pay a dividend to John Swire & Sons worth £57m in September.

Cathay clan fly high | Business | The Times & The Sunday Times

....there is really only one word....

Maybe this is the immediate precursor to a buyout from Air China.

couldn't be any worse

Ever wondered why Ivan the Invisible seems to grin for no apparent reason?

I guess you would grin like a winking chimp when your 2015 Cathay earnings go from $HK7.243 to HK$ 10,096,000 (up 34%) and then Swire Pacific chuck in another HK$1,345,000 as a “thank you” for managing their business so well.

Still, “Cocacola John” leads from the front with his 2015 Swire Pacific earnings creeping up a modest 84% from $15,181,000 to $27,929,000.

So “team”….

Best you pay those Fuel Surcharges on tickets when the price of oil is at historic lows…

Best you tighten your belts when our core operating profit has never been higher….

And if you are a shareholder (other than Swire and Air China) best you accept that your investment is valued at a 5 year low despite major Share Indices being at near record highs and Capital and Fuel is cheap and we have never had more aircraft or customers than the previous 18 months.

Just remember, it’s not management’s fault, it's the economy stoopid.

Same Team: same dream.
People: they make an airline.
Life well travelled (on a management bonus:p)
Cnuts…..