The Journey OUR PEOPLE, OUR AIRLINES

September 2017

Delivering a win
A look at what Cargo is doing to
help our airlines carry the load

Strategy Trains and planes Behind the scenes Winning together

How Global Business Services Our people experience a A closer look at our Inflight The Guru: facts and
will change our company day in the life as MTR staff Entertainment team tips on teamwork
 France | Germany
Italy | Japan | Spain
United Kingdom
United States

About roaming
What is roaming?
Roaming is the temporary data service network
offered when you go abroad and leave your
normal mobile operator’s service. The terms and
pricing of this international "lending" network will
be drawn up according to agreements between
different international operators.

Slow roaming speeds

In some countries, people using roaming services
are not able to access 4G speeds, even when the
service provider offers a 4G network, because
foreign users are not connected to the
high-performance networks. In addition,
customers may find their roaming network speeds
are affected because the “roaming agreement”
between operators means all their data is
transmitted first to their home network provider
before being forwarded on.

Travel with GlocalMe Expensive roaming charge

People who travel around the world need to stay connected with their friends, 經常周遊列國無時無刻需與工作夥伴、家人親友緊密聯繫即
Costs are another big issue with roaming services.
family and colleagues. Even experienced business travellers have faced 使早已預備的用戶亦曾經被當地的繁雜或低質素的電訊服務
Operators usually charge one another high
difficulties with local poor-quality broadband services. GlocalMe is the global 影響而與夥伴失聯麻煩連連。GlocalMe正正是一個卓悅的國
borrowing fees, which are then passed on to
mobile network solution - its core four features will ensure you enjoy a 際流動寬頻方案讓你在超過一百個國家都能隨時隨地享受媲
people using the roaming services. Therefore, the
competitively priced, stable and secure internet service that keeps you 美當地人上網的體驗和收費與世界連繫。
cost of using roaming services while abroad may
connected as a local in more than 100 countries worldwide.
be very high compared with the actual cost of
using a local data provider.
SIM-free with instant connection
By adopting CloudSIM technology, it will automatically connect you to the 採用CloudSIM技術自動連線至當地最強訊號的電訊商無須提
best local network instantly. You can enjoy a fast and stable internet 前預訂亦無須在手機上作任何設定即開即用。 GlocalMe provides an innovative, easy solution
that puts an end to these problems linked with
connection once it launches.
roaming services by connecting you to a local
network without any SIM card.
Service coverage in more than 100 countries worldwide
You can now travel around the globe with a single gadget that will broaden 周遊列國亦無須尋找或購買多種漫遊方案真正一機走
your horizons. 天涯。

A fairer, competitive rate without a contract

GlocalMe charges are based on data volume using Pay-As-You-Go. This makes GlocalMe以數據用量收費用多少算多少且花費實時顯示線上
it extremely convenient and affordable to stay online. You can also easily add 付款即時享用服務。 漫遊小知識
credit via the mobile app.
什麼是漫遊
Share the service with friends and family 漫遊指當您離開原有網絡覆蓋區域時一般原來的
GlocalMe can support 5 devices simultaneously to ensure a good, reliable 可讓最多五人分享穩定的網絡體驗。 居住地)需要使用流動網絡而臨時借用其他運營
online experience. 商網絡而借用的條款跟定價則由電訊公司之間的
「漫遊協議」而定。

漫遊速度不理想
在某些國家提供4G 網絡但使用漫遊時卻永遠沒
有如此速度因為當地的4G網絡是不外「借」。
另外漫遊速度被拖慢的原因亦可能因數據傳輸「
繞遠路」。如果把數據傳輸比作送外賣想象一下
您在國外當地點的外賣必須先送回國內再送去給
您這般繞了一個大圈速度上肯定有影響。這也是
因為「漫遊協議」規定。

高昂的漫遊費
在「漫遊協議」中另一對用戶有影響的當然是收
費。由於兩方運營商一般都會收取高昂的「借網
」租金這昂貴的價值當然是由用戶一同承擔所以
Cathay Pacific／Cathay Dragon Employee Discount 導致漫遊費跟本地數據收費差異很大。

面對漫遊種種的限制GlocalMe則截然不同為您「
借」來是當地的SIM卡可如當地人般使用流動網
絡上述的困惑自然迎刃而解。
 CEO MESSAGE 3

September 2017
NEWS & INSIGHT
News 4
Outport news 10
Performance 12
Industry news 14
Strategy 16
Customer insights 18

FEATURES
The Cargo story 20
A message from Rupert MTR service exchange 24

AS WE HEAD towards the end of is on strengthening our short haul fleet to PEOPLE
2017, now is the time for all of us to complement it and balance the network. Behind the scenes 28
concentrate on delivering real and On a similar note, we have announced From the flight deck 30
lasting improvements that build three new European destinations from From the cabin 31
momentum around transforming the summer 2018, linking new points to Hong
On the ground 32
business and our performance. Kong for the first time. Our room for
Letters to the editor 33
As a part of that, it’s vital that we manoeuvre at Hong Kong International
The guru 34
are set up to respond quickly to Airport (HKIA) is limited until the third
market changes. In this month’s issue runway is complete but we have a plan
there are examples of how our teams for long-term growth and network CATHAY LIFE
have successfully done this, with expansion and will continue to launch Heritage 35
the successful growth of our cargo new destinations and add frequencies. Cathay Club 36
operation. While it’s true that we have We have to balance long-term and My other life 37
benefitted from an upturn in demand, it’s short-term considerations. Well, there is Competition 38
also true that we’ve been nimble in our nothing more immediate and urgent than
response by anticipating market trends, an incoming typhoon. The past month TRAVEL
working with partners and customers has been particularly testing, with three
Travel experience 40
to deploy more capacity to grow and typhoons in as many weeks. Anticipating
My hometown 41
strengthen our hub in Hong Kong. the likely impact and making the right
24 hours in… 42
We are working hard to achieve operational decisions upfront is a key
similar results on the passenger side part of getting through the disruption
of the business. We must generate that follows. It really is a team effort, from
more revenue as we grow the fleet and operations control, to those in the air,
introduce new aircraft, destinations and
services. This involves taking considered
those that support them, the outport
teams and of course, everyone involved
20 35
risks. And we will do that. at HKIA. Thank you.
I visited Airbus at Toulouse recently to As a business we are in the middle of
sign a memorandum of understanding a storm. We need to acknowledge this
to buy 32 new A321neo aircraft for our and change to respond. But with the
Cathay Dragon fleet for delivery in 2020 - same spirit we will come out of the other
2023. We have rejuvenated and expanded side stronger.
our long haul fleet in recent years – the

27 40
average aircraft age is now about five
and a half years old – and now the focus

Get involved…
This is your magazine – we want to hear from you!
If you have pictures or story ideas or want to comment on
anything, email us: peoplecomms@cathaypacific.com or
find us in The Journey group on Yammer

This issue’s cover

PUBLISHER Tom Owen
EDITOR Lucy Jenkins
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4 COMPANY NEWS
Alibaba deal signed
New agreement will strengthen ties with
China’s burgeoning online travel market
THE CATHAY PACIFIC Group
further deepened its collaboration
with the Alibaba Group through a
strategic cooperation agreement.
Specifically, it will work with Alibaba
companies that are focused on
travel services, payment systems
and cloud computing.
These companies include Fliggy
– Alibaba’s travel services platform,
Ant Financial – the mobile payment
platform, and Alibaba Cloud – the
company’s cloud-computing arm.
Cooperation between Cathay
Pacific and Alibaba dates back to
2014 when we became the first
non-mainland airline group to open
a flagship store on Fliggy, one the
largest portals in China.
Director Commercial and Cargo
Ronald Lam said: “Alibaba is a
strategic partner that will help us
widen our customer base and
deepen our distribution in China.
The deal is a good example of
bringing customer centricity to
life, by making customers’ lives
easier in what is a very important
market for us.”
Ronald added: “Alibaba has a
database of more than 500 million
Did you know?
1,050 Diameter in millimetres of an
A350-900 nose landing gear tyre
2,456
Distance in miles
of Cathay Dragon’s
longest flight: Hong
Kong to Bengaluru
people. Our strategic partnership
will allow us to make targeted travel
offers to some of these potential
customers. Part of the arrangement
71
The age Cathay Pacific will
will involve running joint sales be on our next birthday,
campaigns on Fliggy to generate 24 September
more revenue through the portal.
“Alipay is a widely used payment
method in China and other
38
countries. It is currently available
on our website for ticket sales and
there is potential to expand it to
other touchpoints, such as our
mobile app.”
Both Cathay Pacific and Alibaba The number of cadets
Cloud will look for joint development who have graduated from
opportunities using the company’s the Cathay Dragon Cadet
data centres to drive innovation and Pilot Programme this year
boost operational efficiency.
Chief Customer and Commercial
Officer Paul Loo said: “This is an
important milestone for Cathay
71
Pacific and Alibaba Group.
Following our flagship store on
Fliggy, we are pleased to elevate
our cooperation with the largest
retail commerce company in the
world. We believe this strategic tonnes of clothes are
cooperation will offer more choices cleaned each day at
and better user experiences for Vogue Laundry
travellers in the future.”
THE JOURNEY SEPTEMBER 2017
 THE BIG PICTURE 5

The
Big Picture

Bird’s eye view

FRENCH ARTIST CEDRIC Le Borgne’s giant steel
birds watch over passengers at Changi’s hi-tech
new Terminal 4. When it opens later this year, T4 will
offer end-to-end customer self-service from check-in
to boarding, where customers can scan their boarding
passes to open the gates.
It will also be home to our new signature lounge. Our
Singapore team will make T4 their new base by the
end of October.
6 COMPANY NEWS
It’s A321 go!
for Cathay Dragon
CATHAY DRAGON HAS signed a
memorandum of understanding
(MOU) to buy 32 Airbus A321neo
aircraft, to be delivered between
2020 and 2023. The agreement
was signed in Toulouse, home
of the Airbus headquarters
in France.
The new aircraft are the largest
in the A320neo (neo standing for
“new engine option”) family.
They will replace Cathay Dragon’s
15 smaller Airbus A320s and
eight existing Airbus A321s.
Cathay Pacific Chief Executive
Officer and Cathay Dragon
Chairman Rupert Hogg said: “The
substantial investment we are
Range:
3,700nm
Max take-off weight:
93.5 tonnes
Airbus’ Christopher
Buckley (left) and
Rupert Hogg sign
the A321neo MOU
making in new aircraft
underlines our confidence
in the future of the Cathay
Pacific Group, as well as our
commitment to bolstering Hong
Kong’s position as Asia’s largest
international aviation hub as we
bring new connectivity to and
from our home.”
Rupert went on to say:
“The intention is to add new
destinations to Cathay Dragon’s
network, while also increasing
frequencies on some of our Airbus design specifications When delivered, the new
most popular routes so we show the A321neo has a aircraft will feature Cathay
can provide our customers seating capacity of up to 240 Dragon’s latest seats,
with more travel choices and passengers and an extended cabin designs, and inflight
convenience.” range of up to 6,850km. entertainment options.
The blended wingtip “sharklets” add weight but reduce
fuel use on 1,500-nautical-mile journeys by 3.5%
Seat fuel saving:
20% (high-density cabin)
Max payload:
21.2 tonnes
Noise reduction:
Approx. 50% compared to A321ceo
(current engine option)
Source: Airbus
THE JOURNEY SEPTEMBER 2017
 COMPANY NEWS 7

SUBSIDIARY AND AFFILIATE NEWS
CPSL has some big fans
Cathay Pacific Cargo Services recently installed six giant ceiling fans, each
more than seven metres in diameter, on the 3/F of the terminal. The fans are
high-volume-low-speed types that will increase ventilation by 180%, compared
to the traditional oscillating wall-mounted fan. They are also green products
that use half the power. In compliance with CPSL’s strict safety standard, the
fans work with the Building Management System, and will stop automatically if
the fire alarm is activated. The company has also installed evaporative coolers
that will use much less energy to keep the warehouse cool.
Cathay Pacific in
tune with HK youth
CATHAY PACIFIC HAS renewed its role as Official Carrier
to the Asian Youth Orchestra, which has now embarked
on its world tour.
The relationship between airline and orchestra now
spans 27 years. Chief Customer and Commercial Officer
Paul Loo said: “We believe that as an airline based in
Hong Kong, we play a big part in providing opportunities,
enabling youth from Hong Kong and the region to travel
the world. We hope that through partnering with inspiring
programmes such as this one, we will be able to help more
young people to pursue their dreams.”
The Asian Youth Orchestra’s tour includes 21 concerts
in 20 cities in Asia, the US and Europe, before flying home
on 6 September.

HAECO offers educational tour

to Cabin Crew
Cabin Crew got a chance to see a
different side of the cabin when they
made a visit to HAECO on 21 August.
Monna Tsui, Vice President
Commercial, Line Services HAECO
Hong Kong, began the event by
presenting an informative support
service workshop. Afterwards HAECO
staff gave 29 of our people a behind the
scenes look at the paint bay and the
maintenance bay, and finished things
up with a detailed tour of the hangars.
Fanfares streamlined,
hotels now added
THE POPULAR FANFARES website got a revamp last month,
with a new layout that is more accessible to mobile users.
Visitors to the site will notice that there are now fewer
destinations offered each week, as the company has
decided to focus on popular destinations based on our
customers’ purchasing behaviour. Customer feedback
showed that the quality of the fanfares offers was much
more important than how many destinations were offered.
The other major change to the service is the addition
of hotel offers, so customers now have a one-stop-shop
option for planning their trips.
“The new mobile-friendly platform makes booking
very straightforward and easy and enables a better user
experience for our customers,” says Assistant Online Sales
Manager Ringo Leung. “User registration helps speed up the
booking process and it’s free for everyone – not just Marco
Polo Club and Asia Miles members.”

Catering now serves Jet Airways

Cathay Pacific Catering Services
added a new customer to its roster
Lean and keen
as Jet Airways (9W), India’s second Updates on putting Lean into practice
largest airline, has signed up for
inflight catering. That brings the THE RECENT YELLOW Belt Project from Jade Hui, Group
total number of airline customers to Security Manager – Compliance, significantly reduced the
49, the most ever in CPCS history. time spent by our Security Operations Team on compiling
9W operates two flights a day from incident reports regarding unruly passengers.
HKG, servicing Mumbai and Delhi. Jade used some of the things she used in her Lean training,
including process mapping and “5 why” analysis, to find two
things that slow down compiling and cross-checking the
report: the lack of a standardised investigation approach and
the lack of standardised report presentation.
This is a classic example of how by applying Lean
practices, we can streamline our operations and be more
efficient and customer-centric, in line with Time to Win.
8 DEPARTMENT NEWS
Healthy eating on the way
Construction on the dining area has begun,
with opening planned for October
WORK IS UNDER way to transform the dining
experience at Cathay City, with more choice and
exciting new options in a better environment. The
new dining area will also have a more efficient
ordering system with more payment options
including a self-service kiosk and an app, all of
which will help reduce queues.
“We understand that people want more choice
and as part of this, they want healthier food
options,” says Perri Lam, Employee Benefits
Manager. “We want to provide an environment
where you can eat well, work well and live well.
Maxim’s, which is funding the renovations,
FIRST IMPROVEMENTS TO STAFF TRAVEL
FOLLOWING A COMPREHENSIVE review of
the employee survey, we have announced the
first set of improvements to the staff travel
experience. Over the next four months, you’ll
see changes to:
Pricing – current ZED low fares in Economy
Class to reduce by 50% from 1 November 2017
(employees only, not companions).
Companion sectors – up from 12 to 24 sectors.
Staff Travel website launch – better display of
policy and staff travel information.
has tailored its food concept to reflect our
employees’ feedback and we’re looking forward
to seeing the reaction of everyone when we
open fully in October.”
One of the main themes from survey feedback
was the need for more healthy options. This was
echoed by a recent poll in Start the Week, where
healthy eating was also the clear favourite. So
now you can look forward to a mix-and-match
salad bar along with a made-to-order fresh juice
bar and a range of fruit-infused waters.
Look out for more news on the revamped,
full menu in the coming weeks.
You also told us that you want to be treated
exactly as full-fare customers are in terms of the
food you are served. We are working with the
Inflight Services teams to make this happen.
“I’d like to thank everyone for their feedback
and comments in Start the Week; this benefit
is always an important subject,” said Tom Owen,
Director People.
“We’re pleased to announce the first changes
but we know there are other ways we can
improve the staff travel experience. We’re
working on implementing these next steps as
soon as we can.”
BE FIRST IN LINE!
Win an exclusive tasting of the
new menus with your team!
Look out for details in
Start the Week on how
you can be the first
to sample the
new offerings.
Not based in Hong
Kong? Don’t worry, you can
still enter the competition and
we’ll give you vouchers for a
team meal in your town.
What’s next? Coming up in 2018
• Possibility of cheaper bookable fares
• Changes to family travel nominees
• A more transparent Flight Load app with
improved display of available seats and
accepted class of travel
• Lock-in period for companion nominees will
reduce from 24 months to 12 months
• Improved check-in experience at Hong Kong
International Airport with some processes
streamlined
• Post trip surveys to continuously review and
improve the staff travel experience
THE JOURNEY SEPTEMBER 2017
 DEPARTMENT NEWS 9

First Class gets an upgrade

Personal TVs now bigger and HD, seat fabrics change
CATHAY PACIFIC’S FIRST Class
cabins are to get a refresh, led
by improvements to the inflight
entertainment (IFE) screens and
new seat fabrics. The upgrade,
which has already taken place on
one Boeing 777-300ER, is based
on passenger feedback and
shows the Group’s commitment to
continue to invest in the customer.
The main feature is an HD
screen, which at 18.4 inches is
bigger than the existing 17-inch
non-HD personal TVs. The level of
interactivity and functionality will
be similar to that of the new IFE
interface on the Airbus A350s.
As with the PTVs on the A350,
passengers will be able to navigate
around the IFE system with a new
touchscreen handset, but they will
be able to browse, order duty free
goods or watch the interactive
map without pausing or exiting
anything they maybe watching on
the main screen.
Customer Experience Manager
Inflight Premium Cabins Francis
Wang said: “Additionally, the monitor
deployment mechanism has been
changed. Rather than using two
hands, passengers now press a
button to release the monitor, and
can manoeuvre and secure the
screen with one hand. It also moves
less during turbulence.”
Along with the high-tech
improvements to the cabin, the
seat covers will get new materials
that look much fresher while
retaining their exclusive feel.
l First Class adds more sparkle
First Class passengers to Zurich,
Rome, Milan, Los Angeles and
San Francisco can taste a new
champagne: Taittinger Comtes de
Champagne Blanc de Blancs 2006.
Catering Inflight and Lounge
Manager Kim Chong said: “Due
to the limited quantity offered by
our supplier this year, we cannot
provide all routes with Krug, so a
select number of routes will serve
the Taittinger, while other long-haul
routes will continue to serve Krug.
“We have for many years served
both Taittinger and Krug in First
Class – nothing has changed.
We’re simply providing different
varieties for different routes.”
Decanter rates the Taittinger at
97 points, describing it as wine of
“coiled energy, focus and precision”.

CARGO FLIGHT OPERATIONS NETWORK

Converted freighter retires to desert
B-HUR, a Boeing 747-400BCF (Boeing
Converted Freighter), has been flown to
Arizona for retirement. It originally flew
passengers for South African Airlines
before being converted into a freighter in
2006, when it joined the Cathay Pacific
freighter fleet. The last part of its career
was spent flying for Air Hongkong, which
leased it from 2011.
Training simulators could
lease time to other airlines
Cathay Pacific is looking into generating
revenue by leasing out its 777 and A350
simulators in the Flight Training Centre. The
simulators can be operated 24 hours a day,
so by tendering them out to third parties –
including other Asia-based airlines – when
Cathay pilots are not being trained, the
company could have a new stream of income. Newark route to get A350 service
Cathay Pacific’s flights to Newark Liberty
International Airport, currently operated
by a Boeing 777-300ER, will be served by
the Airbus A350-900 from 29 October.
From the same day, one of the three daily
services to San Francisco will also be
operated by an A350. The Newark flight,
CX899, departs the New Jersey airport at
1.10am arriving in Hong Kong at 5am.
10 OUTPORT NEWS
Nicholas Bury
Country Manager,
Myanmar
Enter the
Dragon
We catch up with Nicholas
Bury, Country Manager,
Myanmar, to hear about
the exciting potential this
once locked-away country
has for Cathay Dragon
Q What are our operations like in Myanmar?
A Myanmar, formerly known as Burma, is a
country of more than 54 million people. Not
many people know that it is actually a very large
country - bigger than Thailand and twice the
size of Germany!
We started operating Cathay Dragon flights to
Yangon (called Rangoon during the times of the
British Empire) in January 2013 with four flights
per week. This increased to a daily service in
September 2014.
The local team is small but dedicated and
passionate about aviation and Cathay Dragon.
We have grown from an initial team of seven to
our current headcount of 15, handling everything
from airport and cargo operations to sales and
back office functions.
Q What are the current opportunities for
revenue growth?
A Cathay Dragon is increasing its frequency to
Yangon from seven to 11 flights per week with
effect from 29 October. Departing at 5.20pm
from Yangon, the flight arrives in Hong Kong at
9.45pm – perfect timing for connections to
European and Australian cities – destinations that
MYANMAR
we are unable to serve with our current red-eye
Population
flight timing.
We see opportunities to generate new streams 54,363,000
of revenue through promoting our excellent
connections to mainland China, Taiwan, Japan and National dish
Korea for group traffic. We are developing new fare Mohinga – noodle
products to appeal to different segments in these soup with catfish
Bagan
markets, such as labour and student traffic.
Naypyidaw
Q What does Myanmar offer for National sport
international travellers?
Yangon
Chinlone
A Myanmar is a wonderful destination for
tourists. Places such as Bagan, famous for its
vast temple complex; Inle Lake, a beautiful
National bird
freshwater lake with stilt-house villages and Peacock
Buddhist temples; and the world-renowned
Shwedagon Pagoda in Yangon are must-see
attractions for visitors.
If you’re into food, Myanmar is fantastic!
You can find flavours and influences from
Thai, Chinese and Indian cuisine in everything
that you eat. Flights departing
Lastly, the charming Myanmar people
go a long way to making any visit here a Yangon arrive in
pleasant one. Hong Kong at 9.45pm
Although Myanmar’s economic performance
over the past 18 months has not matched – perfect timing for
expectations, the country’s long-term
economic outlook remains positive and our
connections to Europe
team here is well positioned to capitalise on and Australia
any new opportunities that come this way.
THE JOURNEY SEPTEMBER 2017
 OUTPORT NEWS 11

Jakarta

Mumbai

Changing of the guard

Mumbai says farewell to Charlie Stewart-Cox and
welcomes Mark Sutch to the neighbourhood
IT WAS AN emotional evening when India
bid a fond farewell to Charlie Stewart-Cox,
General Manager – South Asia, Middle East
& Africa. The team in Mumbai put together a
series of dances and a video of memories
to recap Charlie’s four-year stint at this post.
It was a perfect way to express gratitude
to someone who had led and supported
the entire region – and it was a wonderful
chance to welcome Mark Sutch (pictured
right), who will be taking on the role.
There were various dances to introduce
Mark to this culturally diverse region:
upbeat afro jazz from South Africa,
traditional Arabic dance from Dubai and
high-energy Bollywood numbers. Mark
quickly got into the spirit of things and
even showed off some of his own
Bollywood dance moves, complete with
traditional Indian attire!
The team rounded things off with a
performance to introduce both Charlie and
Mark to their new cultures – Japan and
India, respectively. Following the dances,
both men shared a few words.
The night also served to recognise
three of our long-serving staff members.
Customer Sales Supervisor Karen
D’Mello, who has completed 25 years with
the company; and Cargo Account
Manager Kaizad Asundaria and Senior
Cargo Sales Officer Pritesh Nardhany,
who have each completed 10 years, were
all awarded for their contributions to
Busan
Cathay Pacific.
THE JAKARTA TEAM took a road trip to Denpasar
to visit the Metta Mama & Maggha Foundation. The
orphanage currently looks after 11 babies under
the age of two. The team took time to play with the
children and also delivered much-needed
materials including milk formula, disinfectants and
high-chairs. To find out more about how you can
help, head to baliorphans.org.
THE CATHAY DRAGON Passenger Sales team in
Busan held the Best Agency Awards ceremony in
July. The event, which was praised by the Hong Kong
Tourism Board for building good partnerships, was
held in the picturesque Bayside Golf Club in Busan.

Krakow
London

THE LONDON TEAM showed off their green fingers

EARLIER THIS SUMMER the team in Krakow invited children from the Dyliniarnia
Foundation – an organisation that helps poor families – to celebrate Children’s Day.
The kids created posters to show a Life Well Travelled, for which they received play
money that they could use to buy toys and books. They had a lot of fun, and some of
the children even said they hope to work for Cathay Pacific in the future!
by taking part in the Royal Horticultural Society Flower
Show. The display translated the idea of a Life Well
Travelled into a love of gardening and horticulture. The
idea behind the team’s display is a garden of
someone who loves to travel, and has brought a love
of Asia and Asian plants back to British soil.
12 PERFORMANCE

2017 The year so far in figures

The Group reported a loss of HK$2.05 billion for the first six months of 2017.
This compares to a profit of HK$353 million in the first half of 2016. We know
some of the terminology and aspects of the results used in the reporting can
be complex, so we’ve tried to make things a little clearer.

PASSENGERS

Capacity Yield Revenue

73,444m ASKs 51.5 HK cents HK$32.1bn We grew the network, but our revenue

+1.1% -5.2% -3.9%

went down 3.9%.

There is price pressure in every cabin.

Our load factors were largely the same
as last year, but we’re just not making the
same revenues. Capacity is greater than
ASK = Available seat The average fare paid per
kilometres: This shows the km, per passenger. We demand: this is the new world we
maximum total passenger divide passenger revenue Income from our passenger operate in.
carrying capacity, by the total of revenue services, impacted by our
measured in seats passenger kilometres yield, load factor and capacity. Pressure from competitors is coming
available for the carriage (RPKs) – the number through in the prices we can command in
of passengers on each of revenue-paying
sector, multiplied by the
the market – and so we need to grow our
passengers multiplied by
sector distance. the distance flown. market share.

CARGO (CX+KA)

Revenue Cargo showed excellent performance – growth against a small (2.3%) increase
in capacity, so driving quality revenue and higher yield (4.4%). Our performance
HK$9.0bn
reflects an overall growth in the market and a return of economic and consumer

+13.3% confidence. (See feature on Page 20). The China export market is particularly
strong, while partnerships with Lufthansa and Atlas Air boosted tonnage carried

GROUP COSTS

Operating Costs Fuel costs Exceptional

If you remove the exceptional items,
HK$34.3bn HK$14.9bn items then our costs without fuel were

+HK$1.9bn +12.7% HK$722m much the same as 2016 – and that’s

Our biggest cost includes
fine levied by the European
losses incurred by an
increase in aircraft usage.
From next year, the
Includes employee costs, quantity and price of
depreciation, route expenses, the hedged fuel falls
aircraft maintenance and significantly.
other items but not fuel
(see right).
One-off costs including
the expected redundancy
costs of HK$224m and a
Commission of HK$498m
(subject to an appeal).
important. Maintenance costs were up,
but as we get new aircraft they will go
down.
But as passenger revenues have
declined, our biggest cost, fuel, has
gone up. With hedging, by the end of
2018, the big historic positions we had
and their impact on our results will be
in the past.

THE JOURNEY SEPTEMBER 2017

14 INDUSTRY NEWS

See anything you like?

The latest innovations were
being sold at the Paris Air Show

Gulf carriers rising to the challenge

Amid accusations of government handouts and regional
squabbles, the Big Three still hold the keys to success
THE “BIG THREE” Gulf carriers (Emirates, Qatar
Airways and Etihad Airways) are major players
on the global airline scene. With small home
markets (except Dubai, which has developed
significant point to point traffic), their success is
founded on using the geographic advantage of
their hubs to win transfer traffic.
Gulf carriers have a good geographic
position to connect dynamic and growing
global markets, including Asia, Africa and
Latin America with the markets of North
America and Europe. The long range capability
and high capacity of their modern fleets
means they travel the globe on a one-stop or
non-stop basis.
Emirates has grown organically – but with a
significant commercial partnership with Qantas.
Qatar is making selective investments in British
Airways’ parent company International Airlines
Group and LATAM airlines group and others.
Etihad, meanwhile, has accelerated growth by
acquiring minority stakes in several companies.
However, this has proved costly: with massive
losses in Airberlin and Alitalia, the company is
now reviewing the future of its investments.
At the moment all three face a number of
challenges. The US “big three” (Delta, American,
United) have made extensive criticism of the
Gulf carriers’ business models and allegations
of government assistance. The Gulf carriers
have defended themselves robustly.
Low oil prices have affected demand on
certain routes (especially in the premium
segment), there is overcapacity in many
markets and some are being affected by the
growth of long haul low cost. Emirates and
Etihad recently announced a deterioration
in financial results while Qatar is suffering
from the broader impact of sanctions imposed
on its country.
Despite these challenges the business
fundamentals of geography and network
remain sound. The airlines are run commercially
and continue to adapt to the changing world
around them.
We will likely see a slowdown in their rate
of growth and a revision in their fleet strategies
– Emirates for example, is looking at smaller
aircraft and a partnership with low-cost carrier
Fly Dubai – but anyone who believes they will
disappear is mistaken.

COMPETITORS

Virgin Australia strengthens Asia ties Hong Kong Airlines AA joins the team
The Australian Competition and Consumer targets California American Airlines completed
Commission (ACCC) has granted Virgin Building on its Vancouver its purchase of a 2.68% stake
Australia permission to deepen its relationship direct flights, Hong Kong in China Southern last month.
with two Hong Kong-based carriers. Airlines will offer a four- The move entitles the oneworld
According to the ACCC website, the airlines times-weekly service from member airline to have an
Photo: Shutterstock

can now “coordinate their international Hong Kong to Los Angeles observer’s seat on the Skyteam
passenger transport services such as using its new Airbus A350 member’s board, but no voting
codesharing, frequent flyer programme aircraft. Flights will start on rights. AA will also move into
participation, lounge access, route planning 18 December and will go China Southern’s Beijing terminal
and scheduling”. daily shortly thereafter. this month.

THE JOURNEY SEPTEMBER 2017

 INDUSTRY NEWS 15

PARTNERS TRENDS

oneworld is the toast of the skies Upgrade bidding

The oneworld alliance has regained its place as
best Alliance for Wine in the 2017 Wines on the FOR AIRLINES, WHICH are businesses
Wing survey run by US magazine Global Traveler. operating on tight margins and big
Airlines in the alliance submitted 28 sparkling capital investments, maximising returns
wines, 56 whites and 61 reds currently served in is essential. Hence the industry-wide
their Business Class cabins for a blind tasting by strategy to keep customers spending
21 wine industry experts. The win means – even after buying their ticket.
oneworld now holds two significant wine awards, Not all these upselling techniques
having won the Cellars in the Sky award are popular. Paying for food that was
organised by the UK’s Business Traveller previously free was not warmly
magazine earlier in the year. welcomed even if the quality improved
– as with British Airways’ short-haul,
buy-on-board Marks & Spencer
products. In fact, and in the face of
record profits, American carriers
Airberlin continues trading through insolvency have reintroduced not just free snacks
Despite entering protective insolvency proceedings but complete meals.
after Etihad withdrew its backing, Airberlin will Now a number of airlines, including
remain a member of oneworld as it undergoes Cathay Pacific (for a limited number of
restructuring. The airline is receiving support from routes), have introduced an upgrade
the German government in the lead-up to the 24 auction system. For airlines, this
September national elections in the form of a creates revenue from unsold inventory,
bridging loan that will enable the troubled airline to while passengers get the chance of
continue flight operations. Lufthansa has offered to an upgrade at a bargain price – not
support the restructure and is interested in that bidding a dollar in the hope that
absorbing more of the airline, having already taken no one else does will cut it. Airlines can
out leases on aircraft as Airberlin reduced its fleet by specify the opening bid price ahead
half. Low-cost carrier Easyjet has also expressed an of the actual flight.
interest in the company, whose stock is now worth Plusgrade, the company that built
less than the cost of a new narrow-body aircraft. the software for the auction system,
currently works with around 50 airlines
on upgrade bidding. The service offers
customers more flexibility to
personalise their journeys, keeping
MAS looks to digital future passengers – and our airlines – happy.
Malaysia Airlines has opened an in-house
innovation lab as part of its move to become a K
“digital airline”. iSpace, which is based in an 8,300
A
square foot facility, will work towards delivering
“innovative and customer-centric” products and
services for visitors to Malaysia, who are
estimated to number 36 million a year by 2020.

B
Qantas adds superjumbo to HK mix
Qantas will increase capacity on its Hong Kong to
Sydney service, which flies 14 times per week. The
airline will add Airbus A380 services to its mix of J
Boeing 747-400 and Airbus A330 flights during the
Australian summer peak between 10 December and
11 February 2018.
16 STRATEGY / Global Business Services
Let’s head to central
How will the new GBS operation streamline the way we work?
IN CATHAY DRAGON House, a suite of offices
has undergone the finishing touches to
welcome one of the first outcomes of Time to
Win following the head office reorganisation.
It is Global Business Services (GBS), and it
underpins the Productivity and Value Focused
pillar of the strategy.
The first stage of its role is to centralise
some of the Group’s back office administrative
activities, locating them in one place rather
spread across the business. The formation
of GBS will eliminate some of the duplication
in services and break down some of the
departmental silos. It will bring a new way
of working – and opportunity for career
development – for the people moving to this
new business unit.
“GBS is not a new concept, it exists in many
organisations, but it marks something new for
Cathay Pacific and is part of its transformation,”
says Keith Little, Organisational Change
Management Lead. “The immediate vision for
GBS is to centralise, or share, critical support
activities, while they continue to be handled by
the people with the expertise and experience to
deliver them most effectively – the people who
already do the job today.”
These are the people who carry out operational
support activities, tasks that could include paying
suppliers, processing invoices, calculating crew and also the Benefits Service Centre (BSC)
allowances or updating personnel files. supporting people with leisure travel,” he says.
Keith adds: “These are some of the important “It makes more sense to have them in one place
and critical roles that are in many ways the glue as a centre of knowledge and standardise the
that holds the business together.” processes to drive productivity.”
GM Global Business Services Ray Fung takes A GBS project team has spent the past few
the example of visa applications. “Up until now, months looking at some of these processes
ISD had a department helping cabin crew with and how people carry them out. The first wave
visa applications. So did the People department of GBS recruits have also been explaining their
Why Cathay Dragon House?
Keith: “Principally the move is a very
practical step because it allows us to
secure the workspace we’ll need as
the team builds in scope and scale.
But it’s also about creating an identity
as a standalone business unit and
growing a service delivery culture in
everything we do. Our ties into Cathay
remain as strong as ever.”
THE JOURNEY SEPTEMBER 2017
 Global Business Services / STRATEGY 17

How GBS works within the company

Operations &
Finance Service Delivery Commercial People

Global Business Services

Managed by

Uses Global
Business Services

current roles and their processes in a series
of workshops. It’s educational for all parties
and represents an important part of the GBS
change management rationale.
Ray adds: “There are people who have been
doing their job for 20 years but they’ve never
had the chance to map out what happens
after they pass the work on and where it fits
in the big picture. GBS lets people see the
vital link they make in the end-to-end chain
and gives them a chance to bring their
knowledge and experience to shape how
we can do things better.”
While the initial work will focus on continuing
to deliver these services to the business, the
team is encouraged to review the processes
and apply Lean and automation to make them
Having these teams together
will bring synergies and the
chance to share their
wealth of knowledge
enjoy working in a dynamic environment and
take the opportunity to get involved in different
roles and activities.”
Mark Holroyd, Service Delivery Manager, is
exploring the business for opportunities that
would qualify for GBS across head office and
beyond. The focus on increased efficiencies as
part of the reorganisation has helped. He says:
“Where departments have suggested potential
opportunities for GBS, we’ve been able to
be part of that conversation from the start
because of the reorganisation.”
The first wave of recruits, 53 people-strong,
started the move to Cathay Dragon House on 4
September. More will follow as further business
areas are identified, engaged and a managed
transfer from their departments is agreed.
The initial GBS team will service internal
customers using people from Benefits
Services, cabin crew administration, finance
accounts payable, Flight Operations’ data
services, travel services and the People
Department. Jessica Chan, who has moved
from People to become Head of GBS says:
“Having these teams together will bring
synergies and the opportunity for them to share
guys and offer reassurance and assistance
because they will actually be delivering the
benefits to the business.”
There might also be a sense of the unknown
from the people who will be receiving those
services, particularly following the move to
a new building. Jess says: “For our internal
customers, the teams are reachable in the way
they are currently, so it is business as usual for
the moment. That said, the Benefits Services
Centre (BSC) will be fully integrated into GBS
and all services transferred by year-end, so
we are already working on new ways for
everyone to get in touch with us to limit the
impact of that move.”
Phase 1 takes effect
4 September
The GBS offices are
operationally ready
at Dragon House

more efficient and effective. Ray explains: “The
GBS team’s job will change over time from doing
routine operational support to the management
of the process itself.”
This will include exploring how the team
can build in future efficiencies through
the trial, development and deployment of
employee self-service systems, apps or
outsourcing options.
Keith has been guiding the first groups of
people through workshops and helping them
navigate the change not just in their job profiles,
but office location, too. He says: “We’ve been
looking for people who are comfortable and
5
from Finance,
their wealth of knowledge and in time to learn
People and
new areas of the business.”
Of course, with change comes uncertainty. Teams Flight Operations
form Phase 1
Keith says: “We’ve got enthusiasm, but there is
also some trepidation, which, it is fair to say, is 53 People will move
completely understandable. Many people have across for Phase 1.
worked in the same way for a long time and have These moves will be
amassed established skills and knowledge, staggered to minimise
impacts on the business
but most of the concerns have been practical,
such as accessing files and the initial logistical
35 people from Finance AP, Flight
concerns because of the move.” Operations (ODS) and People
Mark adds: “We are listening to the people (Benefits Services) will
moving across – after all, these are the experts, be in place from early
this month
the people who do the actual work. So we really
want to have an open conversation with these
18 CUSTOMER INSIGHTS

lounges in places like Manila have

really raised the bar. Cathay’s new
HKIA lounge, The Pier (pictured left),
is one of the best I have ever seen.
Beyond comfort and cuisine, one
of my favourite things about Cathay
lounges is the people working there.

Time to lounge
What do our lounges offer the constant traveller?
I STILL REMEMBER the first time I
set foot in a Cathay Pacific lounge.
It was The Wing at Hong Kong
International Airport (HKIA). I was
19 years old and I had only ever
experienced lounges in the US,
where I’d be lucky to get some
milk and peanuts. To see them
serving hot food – a noodle bar, no
less! – was truly amazing.
Nowadays my work has me
travelling almost 240 days a year.
I’ve had the chance to try many
different airport lounges all over
the world. There are some good
ones, such as Qatar Airlines’ Doha
lounge, with its enormous reflecting
pool and water features. But I can
honestly say that Cathay’s lounges
are some of the best out there.
I make good use of them, too.
Even if I arrive at the airport an
hour before boarding I’ll still slip
into the lounge for a bottle of water
or a bite to eat.
The food offered in Cathay
lounges is, for the most part, great.
Travelling as much as I do though,
the offerings can get a little
repetitive. It would be nice to see
some variation in the menus, either
with monthly changes, seasonal
options or even pop-ups that
collaborate with local restaurants.
The staff are friendly and capable,
too. They’re not only there to be
receptionists or people who clear
your table, they also know what to
do for ticketing.
And at the end of the day, that’s
the most important thing in a
It’s easy to pass the time in lounge: you can have the best food
these lounges if you have a long but if you can’t rebook someone
layover or your flight is delayed. who is delayed, it’s meaningless.
The spaces are comfortable and
have plenty of natural light so you
can be productive – unlike the dark,
cramped lounges in many airports.
It used to be that lounges in Asia
weren’t quite up to par with the ones
in the US – design-wise anyway.
They never had enough comfortable
seating and there never seemed
to be enough outlets to serve the
number of business travellers trying Tim Yue, 29
to get some work done. MPO status: Diamond
I’m happy to say that this has Director of Sales, East Asia,
changed, and the new upgrades to Bombardier Business Aircraft

Customers are talking

Differing views on our lounge access policies

The The
Good Bad

“I received great service from the smiling staff at the lounge
coffee bar. More importantly, I appreciate that my kids were
welcomed without issue.”
“I recently redeemed lounge passes for my daughter and her travel
companion as a birthday gift. Even though the original redemption
wasn’t correctly issued, staff were very polite and helped re-issue the
passes for the correct flights. Thanks for helping my daughter enjoy the
luxury First Class lounge at Hong Kong Airport!”
“When I tried to use the Vancouver lounge I found out that my
status had been changed to Green, so I couldn’t get in. It was a bit
embarrassing and disappointing but your staff member handled
things in such a wonderful manner that I wasn’t at all bothered. She
was informative, sympathetic and helpful. Her manner was perfectly
in tune with the situation and she deserves congratulations for what
must be a difficult and stressful job.”
“The Cathay lounge at Beijing airport told me I would have to
redeem a lounge pass for 9,000 Asia Miles to get in. This is
ridiculous! I have been a Diamond MPO member for years, and
would like to enjoy some of those privileges.”
“Any guests I bring into the First or Business Class lounges must be
on the same flight as me. So if my clients and I are not on the same
flight, I can’t take them to the lounge. But one important function of
the lounge, in my view, is that Diamond members can act as hosts,
which gives them a sense of belonging with Cathay Pacific and
reinforces their loyalty. It also serves to show potential members the
value of flying with your airlines.”
“My guest was not allowed to join me in the lounge because he was
flying with a different airline. When I showed staff that your website
doesn’t mention this rule they told me (very rudely), ‘Oh, you can’t bring
guests because you are only flying Business Class, not First Class.’”

THE JOURNEY SEPTEMBER 2017


Who are RollsnRoyce?
We unmask the MPO member who is behind
Instagram’s most famous travelling bears
AS WELL AS being the co-founder and
COO of a marketing services agency
in Manila, 38-year-old MPO member
Kesler Go is also the mastermind behind
RollsnRoyce, perhaps Cathay Pacific’s
cuddliest passengers. Here is his story.
I love airplanes, flying and taking
photos. But I also love travelling alone,
which means that most of the time I can’t
be in the photos. So I thought it would be
cool to have a teddy bear take my spot
so I could share these moments with
people back home.
I’ve been flying with the bears since
2013, and in 2014 I gave them their own
Instagram account. Rolls is the one in
the blue modern pilot uniform and Royce
wears the brown leather jacket. They
pretty much like the same things: First
Class seats, caviar and champagne –
but then, who doesn’t?!
One of our most memorable
experiences took place just after boarding
a flight from Tokyo back to Manila. I was
setting the bears up for a photo on my
seat when I realised I had lost my camera –
@rollsnroyce #cathaypacific
The buzz on social
What are people saying about us online?
along with all the photos from the past 12
days in Japan. I told the Inflight Services
Manager and she immediately asked the
ground staff to check with the lounge to
see if there were any cameras left behind.
Less than 15 minutes later, just before
the last batch of passengers boarded, the
ground staff brought me my camera.
Together I have flown with RollsnRoyce
to close to 35 cities in 14 countries and
had lots of adventures – and there are
plenty more on the way!
CUSTOMER INSIGHTS 19
#cathaypacific
On Face-
Katrina Roquid added 16 new photos.
August 9 at 8:08pm
Thank you #CathayPacific for this wonderful experience!
+13
94
Lim Chun Kiat added 7 new photos — at The Pier -
Cathay Pacific Business Class Lounge.
If you are at #HKIA, check out this amazing lounge by
#cathaypacific simply called The Pier. It’s the best lounge
I’ve been to – huge with loads of space, comfortable decor,
with floor-to-ceiling windows and fantastic amenities such as
shower suites (not shower rooms!) and quiet sleep areas (with
proper mattresses instead of lounge chairs)!
+5
40
@cathaypacific
On Twitter
Kris Aquino @KrisAquinoWORLD 7 Aug
Quick trip via @cathaypacificUS @cathaypacific
using my ASIAMILES points from my BDO credit card
1 48
Kevin El Paso @KevinElPaso 6 Aug
Great flight from BKK to SIN onboard this
@cathaypacific A350, great plane. @airbus
#avgeek #plane #airbus
11 79
20 FEATURE / Cargo

Delivering
people what
seafood they want
The secret of Cargo’s success?
Understanding the consumer and
responding fast to market trends.
Phil Heard goes behind the scenes

foot
consumer
wear crazes

FISH, FRUIT, FOOTWEAR, phones and
fidget spinners. These are just some of the
shipments that Cathay Pacific Cargo has
been carrying this year. It not only reflects a
return to health for the global economy, but
also the significant contribution made to the
Cathay Pacific Group’s bottom line, as shown
in the recent interim results. Cargo’s improved
performance was responsible for 23% of the
Group’s revenues. In some regions, teams
are exceeding the overall growth in air cargo
volumes of around 10%. But what are the
factors behind this turnaround after seven
years or so in the doldrums?
John Cheng is Head of Cargo Sales and
Distribution, Cathay Pacific Cargo. “There has
been a big upturn in confidence in the global
economy and consumer confidence. We are
seeing quite a lot of movement as a result. It’s
been helped this year by the launch of quite a
few consumer electronics products, including
new mobile phone models and the new wave
of voice-controlled personal assistants.”
Air cargo is a barometer of the global
economy. Any upturn will be felt in Hong
Kong, the world’s busiest cargo hub by
tonnage carried.
And Hong Kong is the gateway to China,
where a burgeoning middle class is developing
a taste for the finer things; while China is also a
gateway for e-commerce – in and out.
China’s voracious appetite for fresh (or
perishable) products, especially seafood and
high-quality fruit from across the globe is
driving up revenue and volume. Those goods
need to be transported quickly – to keep

THE JOURNEY SEPTEMBER 2017


fruit
electronics
Cargo’s improved performance
was responsible for 23% of the
Group’s revenues
produce live or chilled. The big movements
include fruit from the Americas and Japan,
seafood from the world over and some of the
finest meats and cheeses from Europe.
John says: “There has been considerable
growth in the perishables sector. Australia is
about seafood, fish and lobsters, while we have
just shipped lots of cherries from the Pacific
Northwest of the US to Asia.”
One of the big differences between freight
and passengers is that shipments only buy a
one-way ticket. It is therefore important to try
cheese
Material gains
Strong demand for
fresh produce and
must-have consumer
products has led to a
strong year for cargo
to develop two-way trade flows to optimise
efficiency and revenues, or to ensure that one-
way “fares” are of sufficiently high yield.
That requires careful management of Cathay
Pacific’s 20 freighters, which are all Boeing
747s – including 16 new-generation 747-8Fs.
These are ideal for the main trunk routes,
especially transpacific to the Americas,
where there are strong flows of goods to and
from Asia – and beyond.
In recent years Cargo has extended
the Cathay Pacific network with new
Cargo / FEATURE 21
The Chile connection
Cathay Pacific does not fly directly to
Chile; even the freighters do not venture
further south in the Americas than Mexico
and Miami. Yet it was the second biggest
carrier of freight (by just 60 tonnes) from
there to Asia in 2016.
Cargo Manager Florida and Latin
America Camilo Gallo explains that it is
mainly about supplying the Asian market
with Chile’s perishable produce – and the
spirit of partnership that made it possible.
He says: “We export salmon all year round,
particularly into mainland China and
towards the end of the year we have a peak
for the cherry and berry harvests.
“We have built close relationships with
the two main players in the Latin American
market, LATAM Airlines and Atlas Air. With
LATAM we offer each other space in our
aircraft, helping both of us to develop new
markets. We have an aircraft and crew
leasing agreement with Atlas, giving us in
return, access to its capacity out of Latin
America. This gives us a wide range of
options to feed to our online stations
across the Americas in a better and
more strategic way.
“We also have a close relationship
with forwarders as well as with the shippers
and buyers. We work with a GSA (general
sales agent) who is aligned with our
processes so that we offer clear directives,
expectations and consistency.”
22 FEATURE / Cargo
Forget Paris! Midwest US’
Columbus, Ohio, is the
real fashion capital
freighter-only ports. They include Portland
in the US’ Pacific Northwest, which was
launched with the support of leading
garment manufacturers, but has picked up
additional business with Boeing and a major
circuit board maker.
Ohio is a pillar of the garment industry –
“Forget Paris,” says Jennifer Briggs, Cargo
Manager Midwest US. “Columbus, Ohio, is the
fashion capital!” The freighters that serve the
region’s Rickenbacker International Airport
have a good mix of garments coming in and
out, with exports of auto parts to Japan and
the frequency increased to five flights a week
to deal with demand. Cathay Pacific was also
the first international airline to fly to Brisbane
garments
West Wellcamp, which takes the region’s
agricultural produce to China.
But beyond specialist freighters, more
than half the business’ cargo revenues
come from freight carried in the belly holds of
passenger aircraft.
Hence the logic of moving Cargo under the
main umbrella of Commercial following the
reorganisation. GM Cargo Commercial Nelson
Chin says: “Reporting directly to Commercial
makes a lot of sense. It allows Cargo to be
a key stakeholder and be able to take part
in decisions on aircraft deployment and
purchases, for example.”
Cargo is very much a business about
relationships. “It’s a people business,” says
Nelson. “That’s why cargo agents are vital – it’s
important to build relationships with them so we
can understand where the opportunities are and
how all the parties can work better together.”
The move to Commercial will also have an
impact on how the cargo team does business
– negotiating new contracts with customers,
tech
A cargo clossary
Shipper
A manufacturer or producer of the goods
that need to be shipped.
Freight forwarder
A specialist agent that transports goods
from the shipper to the airport – the freight
airline’s customer.
Consignee
The company responsible for receiving
the goods at the final destination.
Main deck cargo
Freighter aircraft where the main deck is
given over not to seats but cargo. Cathay
Pacific has 20 Boeing 747 freighters
including 14 new-generation B747-8Fs.
Belly cargo
Cargo transported across the network in
the Group’s passenger aircraft, beneath
the main passenger deck. More than half of
the airlines’ cargo is transported this way.
THE JOURNEY SEPTEMBER 2017

but also working in closer partnership with
shippers (those that make or produce the
goods) and handling joint ventures with other
airlines and suppliers.
The second half of the year is an exciting
time. Thanksgiving and Christmas see an annual
spike in business known as “the peak”. John
says: “The peak is looking good. There are a lot
of enquiries already, which is promising, because
cargo tends to be quite late booking. But the
indications from our key customers are that
market sentiment is positive.”
As for the outlook, John says, “Year-on-year
growth rate will slow down compared with
the first half, because recovery started in the
second half of 2016.”
But there will be growth. John adds: “We are
quite a small team operating around the globe.
Last year, we set the direction: that this is the
year to deliver revenue and exceed our
budgets.” Consignment delivered.
In a spin
Consumer crazes can spring up from
anywhere. They’re unpredictable and once
they take hold, demand is huge and urgent.
This is very much the territory of air freight,
because sea freight just cannot get to
market quick enough, even if these are
goods of low value and non-perishable.
Take this year’s craze for fidget
spinners. Head of Cargo Sales and
Distribution John Cheng says: “Although
=
200
200 tonnes of fidget spinners
Cargo / FEATURE 23
you might consider this a sea freight
product, time is of the essence once the
demand is there from the customer side.
They are produced in China and now
there are second and third generation
waves of products, that come with lights,
or that can play music.”
As of September, Cathay Pacific has
carried more than 200 tonnes of the
teacher-tormenting toys.
16 double decker buses
24 FEATURE / Customer Service
Homegrown hospitality
How an exchange programme with the MTR is helping
Cathay Pacific people improve customer service
AT FIRST GLANCE, Cathay Pacific and the
MTR Corporation don’t seem like they have a
lot in common. One is international facing,
delivering people and cargo to all corners of
the globe; the other focuses locally, and is
relied on by millions for their day-to-day transit.
But they are both homegrown success stories:
locally-based companies with an interest in
helping people travel – whether across town or
across oceans – with the greatest possible
efficiency and always looking to improve
customer experience. So what can these two
giants in their fields learn from each other?
From April to June this year Cathay Pacific
and MTR employees took part in a service
exchange programme – the first of its kind –
organised by the Hong Kong Association
for Customer Service Excellence (HKACE).
The association comprises some of the city’s
biggest companies, including Ocean Park, the
Hong Kong Jockey Club and AIA.
Three Hong Kong Airport Ground Staff and
three cabin crew were chosen to take part in
the programme, where they saw how the MTR
handles problems and aids their customers.
Spending their time on the front lines of
the MTR during rush hour, our employees soon
realised that time is of the essence when it
comes to helping people.
“On the third day of the programme we
were assigned to Tsim Sha Tsui station,”
said Simon Tsang, who works as Supervisor,
Ready to serve
Cathay Pacific
employees try on a
new uniform
Airport. “But even though the station was
really busy, MTR staff were able to stay calm
and make sure things ran smoothly.”
Proactive service is essential for that to
happen. Rather than waiting for a customer to
come forward with a problem, MTR staff are
trained to look for people who are having
trouble: difficulties with the payment systems,
searching for an exit or even getting stuck
in a turnstyle.
“The staff are very focused,” said Inflight
Service Manager Joyi Lim. “They know
exactly how to identify a situation and act
appropriately.”
The staff approach the customer and offer
assistance, and see the problem through until
THE JOURNEY SEPTEMBER 2017

it’s solved – which often involves coordination
among staff at various stations.
“This type of teamwork and positive attitude
is very encouraging,” said Flight Purser Franco
Li. “Success can’t happen with only one person.
It takes the right atmosphere and group morale.
This is something we need to learn, because it
will work for our company, too.”
Along with customer service, safety is
another top priority for MTR staff. Our people
took part in several training exercises to
deal with unforeseen difficulties. They also did
drills with the MTR’s Emergency Response
Unit (CSRRU).
“We did a simulation of a train service
interruption between Ocean Park and Wong
Chuk Hang station,” said Airport Service
Leader Filia Ng. “We needed people in the
station to manage the traffic flow while others
went ahead to set up a waiting area for
passengers to take the temporary feeder bus.
“Even though it was only an exercise, you
could see how important cooperation and
understanding between colleagues is during
an emergency. You never know what could
happen at the airport, so a CSRRU-style
simulation is a good way to stay prepared.”
A lesson in turnaround time was another
surprising takeaway. During one of the days
the team took the express train to Guangzhou.
While it is still operated by the MTR it is a vastly
different travel experience to the normal city
Rather than waiting
for a customer to come
forward with a problem,
MTR staff are trained to
look for people who are
having trouble
trains. It’s much closer to airline travel, with
wide, comfortable seats and dining service.
Staff on board the train started prepping for
turnaround before they had even reached their
destination, and just 20 minutes after arrival
Customer Service / FEATURE 25
4.7million
people ride the
MTR every weekday
they were already on their way back.
“Although MTR service is incredibly
frequent, the on-time performance is still
important,” said Simon. “It’s similar to our
flight schedule.”
The latter part of the exchange had MTR
staff coming to experience the life of our cabin
crew as well as our people on the ground.
Not surprisingly, helping customers at the
Hong Kong International Airport (HKIA) is more
complicated than at the stations. MTR staff
sometimes found it tricky to provide
assistance as they lacked technical training
and knowledge of airline operations. “But our
exchange buddies at HKIA gave them support
26 FEATURE / Customer Service
and they worked together to help the
customers,” said Daniel Chan, Learning &
Development Specialist, Airport.
Daniel coordinated the entire airport
experience programme for the participants,
and said that the MTR staff had some
interesting ideas to keep morale high.
“One of their best practices is to recognise
staff by giving some little rewards, such as drink
One of their best practices
is to recognise staff by
giving little rewards to
anyone performing good
customer service
vouchers or cash coupons, to anyone seen
performing good customer service at the MTR
stations or concourses,” said Daniel.
And while customer service at the MTR
can often involve communication between
stations, they saw how much teamwork and
coordination goes on between Cathay
employees in various departments to ensure a
seamless customer experience.
But perhaps the thing that stood out the
most for our guests was not something that
Back at home
can be taught in classes: it was the attitude Our people return to
with which our people approach their jobs. their true colours
“They were impressed by the fast-paced and at Cathay City
dynamic working environment at HKIA, and by
how our airport employees worked together
with passion and professionalism,” said Daniel.
99.9%
“Everyone is supportive of each other so we
can achieve the same goal: to deliver excellent
customer service.”
The programme offered valuable insights
for everyone involved. Cathay Pacific will MTR’s On-Time Performance
participate in future HKACE exchanges so that (OTP) in 2016
more departments can take part.
Next stop!
Cathay Pacific’s next HKACE exchange will
see our people experience operations at
another Hong Kong institution:
Ocean Park.
THE JOURNEY SEPTEMBER 2017
 27

People
OUTPORT NEWS

Keep us up to date with

your achievements – email
peoplecomms@cathaypacific.com

Groom to perfection
CALVIN HE, ONE of our newest cabin crew
recruits gets some tips on grooming and
presentation at a makeup and hair academy
workshop hosted by Elite Makeup. Each year
hundreds of eager applicants go through the
rigorous six-week cabin crew training programme;
so far this year 423 of them have already been
recruited as Flight Attendants.
28 BEHIND THE SCENES / Inflight Entertainment
HK
Indie
Meet the entertainers
We talk to the team that is customising your entertainment experience,
from your favourite TV series to arthouse movies you need to watch
EVER SPENT AN entire night trying to agree on
a movie with your friends? It can be difficult to
find a film that appeals to everyone – a challenge
very well understood by Simon Cuthbert,
Cathay Pacific’s Entertainment, Platforms and
Connectivity Manager.
As a former executive at the film distributor
Lionsgate (La La Land, The Hunger Games) and
Apple’s iTunes Movies and TV store, Simon has
an intimate knowledge of how modern viewers
consume movies, music and TV.
Since arriving at Cathay in 2016 he has
spearheaded a significant growth in the
selections we offer customers on board. And
it’s not just more Hollywood blockbusters;
our suppliers go to every major film festival in
the world to search for great inflight content.
Simon and his team spend a lot of time actively
seeking out new directors and independent
films that will give passengers a very memorable
experience flying with us.
“If you watch Star Wars, you’ll just
remember Star Wars. But if you find a TV
series or a movie and you binge it on a There’s something for everyone – even if you
Cathay flight, then there’s a chance that you’ll just want to enjoy the view: the new entertainment
associate that positive experience with the systems on our A350s include external HD
airline,” says Simon. cameras, which offer exceptional “programming”
The team’s selection process also gives a – especially during take-off and landing. The 3D
boost to local filmmakers. Cathay Pacific has a flight status map is also hugely popular.
deal with Fresh Wave, a short film competition in
Hong Kong, and hosts many of the productions
from the event.
“Last year a bunch of their directors won
awards and really became established,” says
Simon. “We are proud to promote these young
directors. We want them to succeed and put
Hong Kong back on the map for being the film
hub that it is. There’s a heritage here that we
16
are quite proud of.”
Asian content – especially Hong Kong Oscar-winning movies are
cinema – is extremely popular with our currently available on our
passengers. Just this year the Japanese airlines, from current hits
such as Moonlight and
animated film Your Name broke the record
La La Land to classics like
to become our most popular film of all time
Pulp Fiction and Goodfellas
(although that record has since been broken –
it’s now held by Oscar-winner La La Land).
THE JOURNEY SEPTEMBER 2017

Cathay Pacific’s video library keeps growing:
June TV Movie
2016
June TV
2017
0 100 200
We are proud to promote young Hong Kong directors.
We want them to succeed and put this city back on the
map for being the film hub that it is
That new system, which will also be on the
Boeing 777s when they arrive, is a big step
forward in how passengers can choose their
content. It offers a much more streamlined
interface, with movie, TV and album cover art that
you can swipe through – reducing the tapping
that can annoy the passenger in front of you.
Even the game selection is getting a boost, with
name brand offerings such as Angry Birds.
The layout also emphasises our library of
critically acclaimed indie movies that don’t often
get the attention they deserve. But even with that
extra visibility, investing two hours in an unknown
1973
Cathay Pacific launches
1975
Inflight music added
Discovery Magazine
Inflight Entertainment / BEHIND THE SCENES
Movie
300 400 500
movie can feel like a tough decision.
Alvin Lai, Assistant Manager of Customer
Experience - Entertainment Content, says that’s
when the inflight magazine – the original inflight
entertainment – comes to the rescue.
“You can go to the Inflight Therapy section in
Discovery magazine, where we suggest movies
based on your mood,” says Alvin.
“Or to see something related to your
destination, you can check out the Location
Scout, which features movies based on where
they were filmed. If you still have no idea, watch
the World Film Club suggestions. These are
1979
Cinema screens
1987
Videos and news
installed on programming added
B747-200
29
Fan favourites
Your Name, La La Land
and Game of Thrones
are some of our most
popular options
the hidden-gem movies from around the world,
and they might surprise you.”
Of course, many people choose to watch
nothing at all. Music is still an important part of the
travel experience and the right playlist can do a lot
to help a nervous passenger stay calm. Front end
passengers in particular love listening to classical
music, but there is music for every taste and more
coming all the time.
“Some passengers were concerned that we
didn’t have enough music, or that it wasn’t
current enough,” says Alvin. “So since July we
have been improving our music offering in both
quantity and quality.”
In fact, music is the very first part of the inflight
entertainment that most passengers experience.
“Some people are keen on the music we play
while boarding,” says Alvin, “and even ask where
they can buy it.”
With more choices in music, TV and movies,
and alternative selections that include live news,
feature-length documentaries, podcasts and even
gaming and e-sports videos, passengers have
more choices than ever to keep them entertained
on a flight – and that’s going a long way to giving
our customers a Life Well Travelled.
Simon Cuthbert Alvin Lai
Entertainment, Assistant Manager,
Platforms and Customer Experience –
Connectivity Manager Entertainment Content
1996 2016
Live TV, wi-fi, Android
PTVs added to games added
every seat*
*First major airline to do so
30 FROM THE FLIGHT DECK

Smooth operators
Line Operations Manager Glenn Devonport tells us about
turbulence and the new forecasting systems that help us avoid it

THERE ARE FEWER things more unsettling for
a passenger than turbulence – especially if they
are unprepared for it. Recent cases of severe
turbulence causing injuries to passengers and
crew have been captured on smartphones and
shared on social media, and this only makes the
fear around it worse. However, such cases are
extremely rare.
In general there are two types of turbulence:
convective and clear air. Convective turbulence is
caused by the upward and downward movement
of air. This normally occurs in cumulous cloud
formations – the “bubbly” looking clouds.
Glenn Devonport
Glenn Devonport
Line Operations
Line Operations Manager
Manager
All aircraft have a weather radar which picks
up water in the atmosphere and allows the pilots
to detect and avoid cumulous clouds. Normally
we keep a buffer of 10 miles (16km) around
the clouds to ensure the flight is smooth. But
sometimes the clouds can cover huge areas
that extend hundreds of miles, making them
impossible to fly around.
Likewise our route is sometimes constrained
by other aircraft, national boundaries or military
airspace. In these cases, we choose the best
route to avoid the most significant areas of cloud.
The more challenging type of turbulence to
detect is Clear Air Turbulence (CAT), where there
is no water in the atmosphere for our on-board
systems to detect.
Think of the air like a mille-feuille – one of
those layer cakes. Each of those layers is
moving in a different direction and at a different
speed due to atmospheric conditions. When
the layers touch, the air stops flowing smoothly
and can tumble and mix which causes CAT.
Unfortunately, CAT often occurs exactly where
we fly: around 23,000-39,000 feet. We can’t
change our flightpath instantly, because the
aircraft is often too heavy to climb above these
levels, and if we lower our altitude then we burn
more fuel, which reduces how far we can fly.
At the moment, we’re trialling the new
Schneider Electric CAT forecasting system.
Every flight plan is put through this system
before take-off, and if it triggers an alert we can
inform the crew ahead of time so we are better
prepared for CAT incidences.
In addition, as part of the pre-flight
preparation we get a weather chart of the route
we’re flying. This shows convective weather
patterns such as thunderstorms, areas of
likely CAT and icing conditions. We also keep
in constant communication with the air-traffic
controllers and with other aircraft as we fly.
Turbulence is always there as we fly through the
atmosphere at very high speeds but we always
choose the clearest path we can. Most importantly,
our aircraft are very strong and highly resilient, and
the structure of the plane is never in danger.

I CAN’T TRAVEL WITHOUT…

WHETHER TRAVELLING FOR work or leisure I always
pack my running shoes. Whether it is a jetlag-beating,
early morning jog along the River Exe in Devon, UK, or
a pre-dinner gym session in Beijing to escape the
summer heat, running always makes me feel great.
MY OTHER PLANE IS A…
Plus, exercising allows me to enjoy my favourite dish
of miso butter corn ramen in
Ramen Alley at Chitose Airport My other plane is a… hot air balloon
guilt-free! I’ve just come back from the Bristol
International Balloon Fiesta in the UK, where
I ascended the skies with hundreds of other
balloon enthusiasts.
I got involved with ballooning in 1992.
Captain Andy Jepps I started flying hot air balloons a few years after Captain Nigel Black
Manager Flying Training that, and since then I have logged 400 flight Senior Training Captain
Cathay Dragon hours. It’s a passion – just like flying the A350! Cathay Pacific

THE JOURNEY SEPTEMBER 2017


Fit for flying
THERE IS A lot of attention paid to how Cabin
Crew dress and groom. Our hair, makeup,
nails and clothing all have to be of the highest
standard to give our passengers a positive
experience. But not many people realise that the
things we do to look – and feel – our best begin
long before we put on the uniform.
Travelling through multiple time zones,
doing quick turnarounds, and providing great
customer service in every circumstance –
and always with a smile – is very physically
demanding. So it’s important for us to look after
ourselves by taking care of our diets and doing
enough physical activity in our spare time.
After a long haul flight it can be difficult to get
back into your regular sleep pattern. Fortunately,
most of the hotels we use offer 24-hour gym
access, so if you are having trouble sleeping or
if you wake up early, you can do a light workout
If you would like to ask our flight
and cabin crew a question, make a
suggestion or feature in these pages,
then please email peoplecomms@
cathaypacific.com
FROM THE CABIN 31
The right
to bare arms
YOU MIGHT HAVE noticed our male cabin
crew sporting a “cool” new look. In the past,
their uniforms required them to wear a long-
sleeved shirt under their jackets. Now, if they
prefer, they will be supplied with short-sleeved
shirts to wear. And they’ve got the chance
to show off those short sleeves, too: during
boarding, male crew members are no longer
required to wear their jackets.
“We received a lot of feedback from our
cabin crew that the temperature was too
hot during boarding and disembarkation –
especially during the summer,” says Connie
Chan, Assistant Manager Uniform & Grooming
Standards. “In light of this, we revised the
policy on jackets for both male and female
cabin crew.”
This new policy extends beyond the aircraft.
With the exception of Middle Eastern flights
and their airports, jackets do not have to be
worn by our crew while they are in airports,
hotels, and at Cathay City. And that’s the long
and the short of it.
or run on the treadmill. But even if you don’t
like waking up hours before work to go to the
gym, there are a lot of ways to exercise, such as
going for a hike, doing yoga, swimming or even
walking the dog (when you’re back home).
Sticking to a diet or a specific meal plan can
be difficult when you’re on the road, away from
your own kitchen and your favourite wet market
or supermarket. Google has made things a lot
easier, allowing us to find healthy restaurants
or shops wherever we are. But perhaps an even
better resource is our team.
Crew members are happy to pass on their
knowledge of where to eat, or where to buy
fresh veggies and other ingredients when
we are in a new city. It can be the difference
between being hungry or feeling guilty for
eating junk food – or being well nourished and
ready to start the day with a smile.
Ritu Demelo
Senior Purser
Cathay Pacific
32 ON THE GROUND / Aircraft retirement
Retired, but
still working
Fleet Programmes Manager
Tony Britton tells us what
happens to a plane after it has
reached the end of its service
OUR AIRLINE PLANNING team determines the
ideal fleet size and composition to meet our
business needs. They then work with
Engineering to come up with an optimised exit
plan for specific fleets or individual aircraft. This
includes both aircraft that we lease as well as
aircraft that we own.
For leased aircraft, there will be a specific
lease return date and certain conditions to
meet when we return the aircraft.
A plane is retired when it
is too expensive to fly, or
when major maintenance
is due or engines need a
complete overhaul
For aircraft that we own, Engineering works with
the Aircraft Purchasing Department and Aircraft
Trading to figure out the most cost effective
means of exit, so we can maximise the value of
every aircraft after retirement.
When legacy fleets such as A340-300 and
747-400 passenger jets reach the end of their
useful life, other operators show very little
Photo: Colin Parker
interest in continuing to fly them. So while
these aircraft are still compliant and airworthy,
Tony Britton
they typically have a lot of flight-hours and Fleet Programmes
have already served the airline well over Manager
many years (in the case of a 747, that can
be around 25 years). We will operate aircraft
while economic to do so, retiring them
only when they get too expensive to fly,
or when costly major maintenance or Quick facts
overhaul is due.
We can still get a lot of value from the
aircraft post-retirement. This can be done by Aircraft retired this year:
selling the entire airframe for spare parts 5 (3 x A340; 2 x 747BCF)
(as we’ve done with several of the A340-300
fleet). Or we partner with a specialist company Longest non-stop
that will consign it on our behalf (as with the retirement ferry flight: 747-
recent retirement of B-HUR, 747BCF). 400, B-HUG, 3/Mar/15: HKG-
Both our airline and the consignment Sanford (FL), 9,300 miles
company will come to an agreement on the
retirement destination for consigned aircraft. 90% of material (by weight)
Typically, these are offline ports with specialist recycled from each A340
facilities for aircraft storage, dismantling and
parts management. This is when we call upon Aircraft remain registered
the expertise of our colleagues in Flight (e.g. “B-HUJ”) typically up
Operations to execute the retirement flight. to 2 months after ferry
Destinations in recent years have included flight. After parts have been
Marana (Arizona); Victorville (California); salvaged, they will be officially
Sanford (Florida); Tarbes (France) and deregistered with HKCAD
Bruntingthorpe or Kemble (UK).
THE JOURNEY SEPTEMBER 2017

Letters to the editor
Q WHY DO WE always present in-house
on-time performance (OTP) figures related to
“on the dot” departure times, when, I understand
a common industry standard for OTP is
measured within 15 minutes of departure time?
From Captain Guy Malpas,
Deputy Chief Pilot (Airbus)
A Dominic Tsang, International Airports
Performance and Support Manager:
We measure our OTP by both “on-the-dot
OTP” and “within 15 minutes OTP”. The “on-
the-dot OTP” measures every single delay
minute before aircraft push back. This is
important because it enables us to track the
different reasons which affect our punctuality.
This will help us figure out how to prevent
future delays. In some areas we will have a
higher degree of control while in some others
we have less – for example, ATC Flow Control.
The “within 15 minutes OTP” gives us a
more generic overview on OTP, and is often
often used as a benchmark to compare our
performance with other airlines.
So internally, we communicate “on-the-dot
OTP”, as this is how we really measure our
performance (with a target of 50%) and
Q AS A FORMER Cathay employee, I really
enjoy being kept up-to-date with The Journey.
I worked as Cabin Crew from 1984-1994 out
of Kai Tak and I’ll forever hold fond memories of
Cathay Pacific, not just because it was my first
job after finishing university but because it gave
me opportunities to see the world. It showed
me what a “good & caring” employer is, which is
why so many of us ex-Cathay Pacific staff still
feel loyalty despite having left many years ago.
I now work as a Load Controller at London
Heathrow and guess what – Cathay Pacific
many of our operational policies surround
this as the baseline.
To our knowledge, Qantas and other
major airlines also use “on-the-dot OTP”
internally while the “within 15 minutes OTP”
is used in external communications.
Tony Chun
Assistant Manager,
On-Time Performance
Excellence
is one of the airlines I dispatch! On a few
occasions I’ve even bumped into Inflight
Services Managers I flew with many years
ago. I’ve included a couple of photos here to
show how happy I am to reconnect. That’s me
on the right in each one.
Once again, thank you for including us ex-
employees. I’m just as interested – and dare
I say, loyal – to Cathay Pacific now as I was
when I was still working for you.
From Rosa Irene Rodriguez,
former Senior Purser, Cathay Pacific
A Lucy Jenkins, Editor:
Many thanks for your kind letter, Rosa.
It’s great to hear how much you’re
enjoying The Journey as a former
employee. All of our people, whether current
or past, are extremely valuable to us and we
look forward to being able to share more
news with you in future.
All the best in your role at Heathrow!
Lucy Jenkins
Editor, The Journey
LETTERS 33
RUMOUR BUSTER
“In the restructure we talk about cuts in
every area, but in some, it doesn’t look
like this has happened. In fact, some
departments have grown.”
Director People Tom Owen:
One of the goals of the organisational
restructure was to centralise similar
activities, including recruitment,
administration and training, which previously
had duplication across other areas of the
business. Moving these “shadow functions”
out of their original departments allows more
efficiency and consistency to be achieved
and improves our performance.
One result of this is a few teams that may
look bigger on paper, but are actually much
smaller than all of these shadow teams
combined. With the exceptions of our Finance
department and Outports, which will be
addressed later, every department has played
a role in the head office team restructuring.
Have a question for our Editor or want to
comment on anything you’ve read about
in The Journey? Email peoplecomms@
cathaypacific.com to feature on this page
Jargon
Buster
ACARS
This stands for Aircraft Communications
Addressing and Reporting System. It’s an
important piece of flight deck equipment.
ACARS is based on old Telex technology
but it has changed a bit since its
introduction in the 1980s – although it
still has a little paper ribbon printer.
The system transmits messages to
base about aircraft health, but it can also
be used manually by flight crew to
communicate with operations staff on
the ground. This might be to share
updates on potential air traffic delays or
weather conditions – ACARS were abuzz
during the recent typhoon events in
Hong Kong.
34 THE GURU / Teamwork

How well does your

team play together?
Mark Jones on a classic study of working in groups
THE WAY WE work in teams is
becoming a talked-about subject.
Everyone from sports stars to
psychologists is keen to help us
function more effectively when
we get together in groups.
But the unquestioned authority
on teamwork was a psychology
professor from Harvard named
J Richard Hackman, who began
his pioneering work on teams in
the 1970s.
Hackman wrote a book called
Leading Teams: Setting the Stage
for Great Performances – and
a huge number of articles and
books about teamwork. In the
course of his work he spent
many hundred of hours in the
cockpit observing flight crews.
It was here that he saw teams at
their most stressed – and their
most impressive.
Those observations helped
him formulate his core theory:
that great teamwork depends
on “enabling conditions” – a
compelling direction, a strong
structure and a supportive context.
Those are much more important
than coping with individual
personalities and attitudes.
Hackman was also a great
challenger of conventional wisdom.
Below are some of his surprising
conclusions about group working.

THE SECRETS OF TOP TEAMWORK

1 Understand why you’ve
been brought together
The first question you should
ask when you get together
is “Why are we all here?”
Hackman’s research shows
team members don’t always agree on what they are
supposed to be doing. It’s the team leader’s job to
set a clear direction and stick to it.
2 It’s okay to “take it offline”
We’re conditioned to think that many
hands make light work and that
brainstorming and consensus will crack
a problem. But these extra resources
are often nullified by what Hackman
calls ”problems with coordination and
motivation”, which can “chip away
at the benefits of collaboration”.
Sometimes you need to let people go into
a quiet corner and allow them to crack the
problem alone.
3 Embrace personal differences
Some people just aren’t comfortable in meetings
– especially when a lot of brainstorming is
demanded. That doesn’t mean
they’re not team players: they may
just prefer to arrive at solutions
in their own time or in smaller
groups. A successful team
leader knows that not everyone
communicates in the same way.
4 Hug your maverick!
Hackman was a great defender of the people he
called “deviants”, because they challenge the
tendency to always make everything the same,
which can stifle creativity and learning.
“Every team needs a deviant,” he said. “Deviants
are the ones who stand back and say, ‘Well, wait
a minute, why are we even doing this at all? What
if we looked at the thing backwards or turned it
inside out?’”
5 Keep it tight
Hackman had a simple rule when it came to team
numbers: no double digits. “The more people
you have, the number of links that need to
be managed among members goes up
at an accelerating, almost exponential
rate,” he said. That makes for long
meetings and endless paperwork.
It can be a tough call for the team leader – no
one likes to feel they’ve been excluded. But with
diplomacy and proper planning, you’ll find that this
is one area where leaner really is better.

THE JOURNEY SEPTEMBER 2017


A life well lived
Cathay Pacific lost a link with its historic beginnings when
Captain Charles “Chic” Eather passed away in July. He was 96.
CHIC JOINED THE airline in 1946,
just a couple of months after it was
founded by adventurers Sydney
de Kantzow and Roy Farrell. As one
of “Syd’s Pirates” – the name given
to the early pilots by the late John
Swire – Chic flew the skies in the
airline’s legendary first pair of DC3
aircraft, Betsy and Niki.
“When I joined my pay was
US$400 a month, or HK$1,603,”
Chic recalled in a CX World feature
in 2006, which marked our 60th
anniversary. “On that amount I could
live like Riley – an amah [domestic
helper], a dobey wallah [person that
does your laundry] and housing!”
He earned every cent of his
salary on his first flight for Cathay,
co-piloting Niki to Manila with a
heavy load of woollen goods. When
the port engine cut out just an hour
out of Morotai Island, the plane
began losing altitude.
“[Our] only chance was to start
dumping cargo,” Chic wrote in his
memoir, Syd’s Pirates. Co-founder
Roy Farrell was on board and “as
each expensive bale took the
deep six, Farrell’s face became
more grey”.
There were plenty more
hair-raising moments for the
young Australian pilot – including
another episode in Niki, this time
over Dum Dum airfield in Kolkata,
when he lost both engines during a
ferocious rainstorm.
Farewell to Chic Eather / HERITAGE 35
But Chic survived and
prospered with the airline in Hong
Kong, meeting his wife Judy, a
flight attendant – “a beautiful girl
who was never on time and utilised
her entire salary on taxis” – and
taking his final command on 28
August 1975, in a Boeing 707.
Never losing his passion for
Cathay Pacific, or aviation in
general, Chic became a keen
author and fervent archivist in
retirement, even passing his entire
collection to Swire’s Hong Kong
Archive Service.
Chic Eather was a true
old-school aviator and a man of
passion, warmth and wit, and he
will be greatly missed.
36 CATHAY LIFE

Our round-up of Cathay Club events

THE WRAP-UP: Children’s camp

This year’s Children Summer Programme,
hosted by Cathay Club and the YWCA, was an
unforgettable experience for 50 children from
families from the Cathay Group.

DON’T MISS: Movie night GET INVOLVED

Join us at The Auditorium on 14 September for The Cathay Club
a special screening of The Founder, the story coordinates
of Ray Kroc, the man who turned McDonald’s sporting,
into the world’s most famous restaurant chain. educational and
After the show we’ll hear from guest speaker recreational
Joseph Chu from McDonald’s Hong Kong, who activities to help
will share some of his company’s Lean secrets bring together
(turn to Page 7 to see how we’re putting Lean people from
into practice). across our airlines.
All attendants will get a special gift and a ACHIEVEMENTS: Champion hoop stars
chance to win a behind-the-scenes tour of Our ladies basketball team won the championship in the Find out more
McDonald’s’ operations in Hong Kong. Enrol Inter-Hong Basketball Tournament 2017, which was held on through the
by Friday 8 September. Seats will be on a Sunday 26 August. The tournament featured teams from a total Cathay Club link
first-come-first-served basis. You can find of six Hong Kong-based companies, including Watson group, at CX & You on
more details on IntraCX and Cathay Club’s PCCW and Standard Chartered Bank. Cathay Pacific had more IntraCX.
Yammer group. than 10 players taking part in the action on the court.

DATES FOR YOUR DIARY

14
SEP
Film Night – The Founder
Auditorium, Cathay City 23
SEP
Cathay Singing Contest – Audition
Multipurpose Hall at 21 OCT
Swire Intra-Group
Running Competition
Cathay Dragon House Science Park, Pak Shek Kok Promenade

16
SEP
SHKSA Swire Halloween Fest
Family ”We-treat” 5-8
OCT
World Airline Road Race
Marina Bay, Singapore 5
NOV
Hong Kong 24-hour Charity
Pedal Kart Grand Prix 2017
Ocean Park Victoria Park

17 15
Inter-Hong Golf Inter-Hong Dart Tournament Coming soon in November:
Tournament Mei Foo Film Night – Deepwater Horizon
SEP OCT
Phoenix Hill, China Auditorium, Cathay City

THE JOURNEY SEPTEMBER 2017

 CATHAY LIFE 37

Q+A MY OTHER LIFE

1 4

2 6

He’s got all the write stuff

Deputy Simulator Training Manager (Airbus)
Joel Lebrun spent 21 years in the French Air
Force, including a three year exchange with
the Royal Air Force. His passion for flying is
also matched by his passion for reading –
and writing: he’s just published his second
book, Fighter Pilot of the 20th Century.
How do you find time to write?
As a simulator instructor, most of the time we
work at night, so during the day we have plenty
of free time. I tend to write in the morning, do
some sport in the afternoon and then go to
work at night – and sleep when I can.
Your first novel, Novembre 2057, is fiction,
but your new one is an autobiography.
Which was harder to write?
Fiction is more difficult because you need to
imagine things you might not know about.
You need to have an ending and you need
to move the story.
For my autobiography I was able to consult
my old log books for facts about what plane I
flew and where I went. I also contacted my old
colleagues, who helped me recall some of the
details of the things we did together.
What is the most frustrating part of writing?
A lot of people don’t read books anymore. All
they read now is Facebook. I really hope that
more people can read my books so I can share
my ideas with them.
What has been the best thing to come out
of your writing?
I wrote my first book as a gift for my children. I was
really happy to be able to surprise them and share
a different side of myself with them. It opened up
some discussions and brought us closer.
Writing my second book helped me
reconnect with a lot of my old army mates –
some of whom I hadn’t spoken to for 30 years.
Any advice for hopeful novelists?
Just go for it. Even if you don’t make money,
it’s good for you. It’s helped me learn a lot
about myself.
Joel Lebrun:
a life in pictures
1 1978 Joel receives his wings
2 1978 In the cockpit of the T-Bird
3 1985 Alpha jet instructor
4 1987 Preparing to fly the Jaguar

5 1988 Flying the Jaguar

TELL US YOUR STORY
Do you have a hidden talent? We want to know about it! 6 2015 Novembre 2057 is published
Tell us about your hobbies, passions and achievements outside of work.
Email us at peoplecomms@cathaypacific.com. 7 2016 Joel publishes his autobiography
 e d !
a p pd p e o p l e
Sunr events aasnt month
O p
he
of t

1
2

5
3
4

1. PROUD DAD: Flight Operations’ Norman MacLeod
was at Buckingham Palace with his daughter Hannah, as
Prince Charles made her a Member of the Most Excellent
Order of the British Empire (MBE) for services to hockey.
2. STRIKE IT UP: Our bowling team took second
place at the 2017 Inter-Hong Bowling Competition.
Inflight Service Manager Alice Oon bowled 246 in
her last game, winning her both the Ladies High
Game and the High Series award. Congrats all!
3. CHRISTMAS IN JULY: It was Time to unWind in
Sydney, where the team got into the Christmas spirit
with “Elf Yourself” videos and carolling. Pass the eggnog!
6
4. INDONESIA GETS GREEN: Our team in
Surabaya gave a hand to Mother Nature, planting
225 mangrove trees at the Wonorejo Mangrove
Ecotourism and donating 100 guava trees to the
Ministry of Agriculture.
5. BREAKOUT SUCCESS: Team Israel worked on just
that: being a team, as they took part in a leadership
workshop which finished off with an escape room
challenge. Glad to see they all made it out!
6. PANDA-MONIUM: Amsterdam introduced some
of our top-level MPO members to the new pandas at
the Ouwehands Zoo. Cuteness overload!

Send your pictures to peoplecomms@cathaypacific.com

and we’ll try and include them in Memory Board

COMPETITION TIME

Koh Samui hideaway

Win a three-night stay for you and nine friends in
this luxurious five-bedroom villa
HAVE YOUR OWN five-star villa experience with infinity pools, BBQ areas and
jacuzzis at Samujana, overlooking the beautiful Gulf of Thailand. There is
housekeeping service, private gyms, a cinema, pool tables and table tennis, plus
a spa and daily breakfast to help you make the most of your stay in one of Koh
Samui’s most beautiful villas. Find all the details on IntraCX from 11 September.

Congratulations to Julieta Evangelista, Cargo Officer,

Hong Kong, who won our July/August competition for a
WIN
A three-night villa
weekend stay at the Kerry Hotel, one of Hong Kong’s package for 10
hottest new places to visit.

THE JOURNEY SEPTEMBER 2017

 OUTPORT NEWS 39

Travel
If you have any great pictures from your travels,
email peoplecomms@cathaypacific.com

Salt of the Earth

THE WORLD’S LARGEST salt flats
are found in southwest Bolivia, near
the town of Uyuni. Flight Purser Alice
Ng visited the area two years ago, just
after the rainy season when the flats are
covered in a layer of water.
“Late at night we drove out to the
middle of the flats, and were astonished
by the reflection of the night sky,” says
Alice. “This was the most amazing view
of the stars I have ever seen – even after
seeing the Milky Way so many times
inflight.” The best time to visit Uyuni for
a scene like this is February to April.

Send us your photos

for the chance to win
a pair of Jabra Elite
Sport True Wireless
Earbuds (jabra.com),
WIN! offering up to three hours
of wire-free music on the go.

Email your pictures to

peoplecomms@cathaypacific.com
40 TRAVEL EXPERIENCE / Norway

Fjord almighty!
Aegis Leung heads upstream to
explore Norway’s natural beauty
LOTS OF PEOPLE think of Norway being a cold, snowy place,
but in summer the weather is warm and the landscape comes
to life. The country’s entire coastline is covered with fjords
that cut their way through the rugged mountains. I took this
picture of a fjord between the towns of Myrdal and Flam.
These inlets were carved into the rock by glaciers as they
melted and drifted to the sea at the end of the last Ice Age.
Some of them are Unesco World Heritage sites, and National
Geographic Traveler magazine voted the Norwegian fjords as
the world’s best travel destination. I’m very happy I got to see
this magnificent scenery for myself.

Aegis Leung
Customer Services
Officer

THE JOURNEY SEPTEMBER 2017


Photos: Shutterstock
Bountiful beaches
Busan is home to white sandy beaches,
world-class shopping and some of the
tastiest food in Asia
Bustling Busan
Park Sung-hyun shows us Korea’s cracking coastal city
HOME TO SOUTH Korea’s largest
container handling port (sixth
largest in the world), Busan has
been the country’s centre of trade
and logistics for decades.
But it is also a famous tourist
Park Sung-hyun destination. With new infrastructure
Passenger Sales
and buildings popping up all the
Executive
time, the city has earned its slogan,
“Dynamic Busan”.
The city’s eastern districts,
including Haeundae and Gwangalli,
are modern and developed, with
skylines of high-rise buildings.
However, the western districts
– such as Nampo-dong and
Jungang-dong – still retain the
traditional Korean atmosphere
you would find downtown in the
old days.
Despite being such a developed
city, whenever you want to see
white sands and ocean, there are
eight wonderful beaches nearby.
Haeundae (main photo) and
Gwangalli beaches are my favourite
and both are easily accessible by
public transport.
I love Gwangalli for its beautiful
night view, where the glow of the
city lights mingles with Gwangan
Bridge’s own colourful lights.
Haeundae, however, is the most
popular (but crowded) beach in
Cathay Pacific
operates a daily flight Love your hometown? Let us know about it!
to Busan’s Gimhae
Email peoplecomms@cathaypacific.com
International Airport
Korea during the summer. It’s also
home to many five-star hotels and
fun places, including an aquarium.
For shopping, nothing beats
Shinsegae Centum City, which
holds the Guinness World Record
for the world’s largest department
store. It has plenty of shopping
and entertainment facilities such
as an indoor ice rink and Spa
Land, a Korean sauna. And if
you’re hungry, the food court
on the ground floor and the
fine dining options on the top
floor both have famous local and
international restaurants.
If you want a more traditional
experience, visit Guk-je Sijang,
also known as Busan International
Market. It was established after the
Korean liberation in 1945, but it
really came to life after the Korean
War ended in 1953, when refugees
from all over the country started
to sell things they had shipped in
through the Port of Busan.
Today the market has
thousands of retail stores where
you can find low-priced clothes
and plenty of other items for
souvenir hunters. And of course,
like most neighbourhoods in
Korea, delicious food is not hard
to find.
Busan / MY HOMETOWN 41
Must-try
Busan dishes
1 Busan eomuk (Busan
fishcakes) and ssiat hotteok
(seed-stuffed pancakes)
These can be found all over
the city, but some of the best
vendors are at Guk-je Sijang.
2 Gukbap (pork soup
with rice) Bonjeon Dwaeji
Gukbap, located next to
Busan Station, is one of
my favourite places to get
this delicacy.
3 Milmyeon
(cold wheat noodle)
For this one, head west from
the train station to Choryang
Milmyeon, which also makes
delicious pork dumplings to go
with the noodles.
4 Sashimi One of my
favourite sashimi
restaurants is the
Sky Fishery in
Nampo-dong, which
has fresh sashimi and
seafood at good prices
and beautiful ocean views.
5 Chimaek The unbeatable combo of Korean
fried chicken and beer is a must-
try. For a great evening out,
including a cracking view of
the skyline, eat out at The
Bay 101 at Dongbaek
Island in Haeundae. If
you’re still hungry, they
also serve excellent fish
and chips.
42 TRAVEL / Zurich
hours in
24 Zurich
With museums, architecture
and shopping, there’s a lot
more to this lakeside city
than just banking
JUST A 10-MINUTE train ride from Zurich
Airport, Switzerland’s largest city has a lot to
offer. Cultural enthusiasts will have a field day
with the many museums and art galleries as well
the opera house to visit.
If your time is limited though, make the most
of it with a day of shopping and sightseeing,
followed by an evening of dining and dancing –
all the while surrounded by the city’s beautiful
old-world architecture.
Sandro Mosbacher
Leisure Sales
Executive
Don’t leave
without visiting:
Bahnhofstrasse, Zurich’s shopping
boulevard, dates back more than 150
years to when the city filled in its moats.
The area is home to all the top fashion
brands as well as Paradeplatz – the Swiss
banking centre.
center. Set on the banks of Lake
Zurich, it’s a beautiful neighbourhood to
take a stroll. Be sure to stop at the pastry
shop Sprüngli to try their speciality:
Luxemburgerli, a mini-macaroon with a
delicious creamy filling.
Cathay Pacific
flies daily
to Zurich
Start at the top
Take a three-minute ride on the
Polybahn cablecar to the Polyterrasse,
Photos: Michael Mucha/imageBROKER/Argusphoto; travelstock44/LOOK-foto/Getty Images; Odyssey-Images /Alamy Stock Photo/Argusphoto; travelstock44/Alamy Stock Photo/Argusphoto doopedia/Shutterstock
the courtyard that joins the Federal
Institute of Technology and Zurich
University. From here you’ll have a
fantastic view of the city.
Go back in time
Just a five-minute walk away is the city’s
old town. Niederdorf, or Dorfli, as the locals
call it, is a pedestrian area filled with cute
shops and quaint restaurants. Stop in one
of the old guild houses for a breakfast
of the local speciality, Zuri-Gschnatzlets
(sliced veal with hash browns).
Time to shop
Cross the Limmat river into Zurich
West and browse the funky alternative
stores in the Viadukt. Originally built
in 1894 for the railway, it now houses
cool shops and galleries. There are
restaurants, too, so you can grab your
lunch – perhaps a cheese fondue?
Wine and dine
Head to Kreis 5 district for dinner at
Frau Gerolds Garten. The open-air bar
and restaurant has a great barbecue
selection and features fresh ingredients
straight from their own garden.
Get the party started
Kreis 5 is home to many hip nightclubs,
but if you’re looking for something
more interesting, the bars and pubs of
the quirky Langstrasse district are just
a 10-minute cab ride away.
THE JOURNEY SEPTEMBER 2017
Spreading recognition is

EASY
Write a note of gratitude
for the small things you
appreciate

Pick up the phone and tell

someone they’re great

Visit our Work Well Done

website and write a post on
the recognition wall

www.cathaypacific.com/workwelldone

Work Well Done

 beer_ad_May_June.pdf 1 11/5/17 2:54 PM

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