Comfort and enjoyment to passengers on flights of up - Cathay Pacific

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Zero findings from latest IOSA audit CX underwent its 5th IATA Operational Safety Audit (IOSA) Audit this year <strong>and</strong> has emerged with zero findings for the first time. The audit was undertaken over a five-day period in June by an IATA-approved organisation <strong>and</strong> involved a detailed examination of every aspect of the airline’s operation. The Corporate Quality Department coordinated the audit from the CX side <strong>and</strong> among the departments assessed were Flight Operations, Inflight Services, Cargo <strong>and</strong> Engineering. At the end of the exercise, CX compliance was established with all IOSA st<strong>and</strong>ards including the critical Safety Management System (SMS). “This was our first attempt at SMS conformity <strong>and</strong> it is great news that we passed this <strong>and</strong> all the other st<strong>and</strong>ards laid down,” says Graham Marsh, Head of Corporate Quality. “The latest audit was conducted by an organisation we hadn’t worked with before <strong>and</strong> they were particularly rigorous. We were very happy <strong>to</strong> hear them say that we were one of the best airlines they’d ever audited.” Graham said that a lot of hard work went in<strong>to</strong> the audit. “The amount of effort put in by all operational departments was outst<strong>and</strong>ing,” he adds. IOSA was initiated by IATA in 2001 <strong>to</strong> provide a st<strong>and</strong>ardised audit programme based on internationally recognised st<strong>and</strong>ards <strong>and</strong> a structured system for the sharing of audit reports. STANDARDS MET: Graham Marsh from Corporate Quality. First class effort as awards flood in for products, Asia Miles Cathay Pacific’s First Class product showed its reputation among frequent fliers recently by taking two <strong>to</strong>p awards in September. The airline won the Airline of the Year (First Class) honour at the China Travel & Meetings Industry Awards for Leisure & Business Travel hosted by Travel Weekly. The award was accepted by Assistant Public Relations Manager Catherine Cheng on 11 September. On 28 September, Cathay Pacific received the Best Airline First Class award at the 2012 Business Traveller Asia-Pacific Travel Awards ceremony. General Manager Product Toby Smith was there <strong>to</strong> pick up the trophy. Toby was also on h<strong>and</strong> at the TTG Asia Travel Awards on 4 Oc<strong>to</strong>ber in Bangkok when Cathay Pacific was named Best North Asia Airline. He was joined by Dragonair CEO Patrick Yeung who accepted the Best Regional Airline award for KA. The TTG awards recognise luminaries of the travel industry <strong>and</strong> were determined by more than 60,000 votes cast by TTG Asia readers across the Asia Pacific region. And, for the eighth consecutive year, Asia Miles was named Best Frequent Flyer Programme at the Business Traveller Asia-Pacific Travel Awards ceremony. Direc<strong>to</strong>r & General Manager Asia Miles Stephen SY Wong accepted the award from celebrity Frances Yip <strong>and</strong> said the win “highlights our strong commitment <strong>to</strong> delivering product <strong>and</strong> service excellence <strong>to</strong> our 4.5 million Asia Miles members worldwide”. Making the most of economies of scale New joint venture <strong>to</strong> boost Hong Kong’s positioning as MRO provider The new CX/HAECO joint venture <strong>to</strong> provide inven<strong>to</strong>ry technical management services was set up with a clear objective: <strong>to</strong> build a successful third-party business that can also serve the needs of the Cathay Pacific Group. HAECO ITM Limited (HXITM) will combine HAECO’s existing aircraft component assets with CX’s current inven<strong>to</strong>ry <strong>to</strong> support airlines in the CX Group, but there will also be a strong focus on adding other airline cus<strong>to</strong>mers. “There are a number of benefits from spreading the inven<strong>to</strong>ry over a bigger pool of cus<strong>to</strong>mers <strong>and</strong> aircraft,” says Engineering Direc<strong>to</strong>r Chris<strong>to</strong>pher Gibbs. “Having more cus<strong>to</strong>mers will mean a bigger inven<strong>to</strong>ry that can be used more efficiently, <strong>and</strong> the economies of scale will help us <strong>to</strong> TEAMING UP: Chris Gibbs <strong>and</strong> Augustus Tang seal the deal. build a more profitable business,” adds Chris. The new joint venture was announced on 24 September <strong>and</strong> will begin operations on 1 November from HAECO’s base at Hong Kong International Airport. CX has a 30% stake in HXITM, with HAECO owning 70%. The JV’s services will primarily cover the provision <strong>and</strong> pool management of components inven<strong>to</strong>ry, the management of component repairs <strong>and</strong> overhaul, supply chain management <strong>and</strong> round-the-clock support for AOG (aircraft on ground) incidents. Chris says that both CX <strong>and</strong> HAECO will bring specific strengths <strong>to</strong> the new company. “HAECO is well established as a <strong>to</strong>p-tier aircraft maintenance provider, <strong>and</strong> already has a strong cus<strong>to</strong>mer drive,” says Chris. “From the CX side we will be putting our own inven<strong>to</strong>ry, valued at around US$100 million, in<strong>to</strong> the pool <strong>and</strong> providing considerable expertise <strong>and</strong> experience.” Some 20 staff from the Engineering Department will be seconded <strong>to</strong> HXITM for a two-year term, after which they’ll be offered full-time positions within the JV. Chris says there is a growing trend worldwide for airlines <strong>to</strong> outsource capital-intensive component management activity <strong>to</strong> service providers. “This is becoming a common model among low-cost carriers <strong>and</strong> airlines with small fleets,” he says. “We are one of the first major carriers <strong>to</strong> go down this path, but the general trend is in this direction <strong>and</strong> we believe there is a market for such services out of Hong Kong.” HAECO’s Chief Executive Officer Augustus Tang says the JV will help <strong>to</strong> strengthen Hong Kong’s MRO (maintenance, repair <strong>and</strong> overhaul) positioning. “As we grow the business, it will also create air freight volume for HKIA <strong>and</strong> employment opportunities for aircraft engineering professionals,” he says. n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n
Latest product set for Jan 2013 rollout Regional Business Class gives more comfort, versatility for short flights Cathay Pacific celebrated its 66th birthday by unveiling the new Regional Business Class product <strong>to</strong> the Hong Kong media. The press event, hosted by Chief Executive John Slosar <strong>and</strong> Chief Operating Officer Ivan Chu in the mock-up area at Cathay City, saw more than 20 journalists getting a chance <strong>to</strong> try out the new product for themselves. John said the new product was developed after listening <strong>to</strong> <strong>and</strong> incorporating cus<strong>to</strong>mer feedback. “It underlines our commitment <strong>to</strong> excellence in innovation <strong>and</strong> providing an exceptional travel experience. “Our continued investment in products <strong>and</strong> services is a key element of our ongoing commitment <strong>to</strong> the development of Hong Kong as one of the world’s leading international aviation hubs,” he added. General Manager Product Toby Smith says Marco Polo Club members were invited <strong>to</strong> take part in several rounds of mock-up trials. “We did two rounds of one-on-one interviews, eight months apart. Then selected frequent fliers were invited <strong>to</strong> try out the first round mock-up. We then analysed their feedback, iterated the design <strong>and</strong> built a new functional mock-up prior <strong>to</strong> embarking on the second round of consultations,” Toby says. “Most of the feedback had <strong>to</strong> do with the need <strong>to</strong> maximise living space. From that feedback, we sculpted the seat shell <strong>to</strong> provide increased knee <strong>and</strong> shin clearance <strong>and</strong> also footwell depth “The team worked from the basic premise that this product will cater <strong>to</strong> regional flights with five hours or less of flying time, where a flatbed product is not necessary,” Toby adds. FIRST LOOK: John Slosar <strong>and</strong> Chief Operating Officer Ivan Chu unveiled the new product at a media event. Stylish inspiration for new amenity kits From mid-Oc<strong>to</strong>ber, the Premium Economy Class amenity kits will sport a new look created by a homegrown Hong Kong br<strong>and</strong>. The new case designs - Fairies <strong>and</strong> Cloud – were developed by well known lifestyle br<strong>and</strong> Goods of Desire (G.O.D.) <strong>and</strong> contain socks, an eye shade, ear plugs <strong>and</strong> a dental set. The Fairies case, which depicts Chinese Gods enjoying themselves inflight by sipping coffee, using the computer or reading, is available on outbound flights from Hong Kong while the Clouds design will be distributed on inbound flights. “We chose G.O.D. because it is known for its fun niche designs inspired by the vibrant culture of Hong Kong, which is a good fit for our Premium Economy Class,” says Assistant Product Manager Catherine Sin. “The plan is <strong>to</strong> have four designs per year, two outbound <strong>and</strong> two inbound. The hope is they will become real collectibles <strong>and</strong> <strong>passengers</strong> will look forward <strong>to</strong> receiving a new design every time they travel,” she adds. In fact, the kits have been specially designed <strong>to</strong> become a collectible set. Each one has a but<strong>to</strong>n at the back which allows additional bags <strong>to</strong> be attached <strong>to</strong> it <strong>and</strong> eventually create a wall hanging accessory. The team is also constantly looking for opportunities <strong>to</strong> offer more sustainable products inflight. “At least 90% of the raw materials used in making the bag is from recycled plastic bottles, while the <strong>to</strong>othbrush is made mainly from corn starch <strong>and</strong> cellulose, which is biodegradable, recyclable <strong>and</strong> uses fewer resources in its production,” Catherine says. The new Regional Business Class will replace the two variations of the Business Class product currently flying on the regional routes <strong>and</strong> the first aircraft will start being retrofitted on 1 December. “The first Boeing 777 aircraft is due <strong>to</strong> enter service in January 2013, while the first A330-300 will be completed in the fourth quarter of 2013. All of the airline’s regional aircraft will be fitted with the new product by the end of 2014,” Toby says. • New regional product in detail – pages 8 <strong>and</strong> 9. Update from the Chief Executive The state of the aviation industry is very much dependent on the state of the global economy. When the economic climate is positive, <strong>passengers</strong> will fly – <strong>and</strong> be more willing <strong>to</strong> pay a higher price for the service – <strong>and</strong> cargo will move across the world. We saw those conditions in 2010 – a record year for our airline <strong>and</strong> the industry as a whole – but for the past 18 months we have experienced continued weak dem<strong>and</strong>, particularly for cargo. Recent assessments indicate that the world’s economic woes are far from over. Earlier this month the International Monetary Fund stated that the global economic slowdown is worsening, cutting its growth forecasts once again. Europe remains on the brink of a crisis, the US is struggling <strong>to</strong> get its economy moving again, <strong>and</strong> even the so-called BRIC economies – <strong>to</strong>uted as the new engines for global growth – are stalling. It’s a very gloomy picture. So where does that leave Cathay Pacific? After announcing a loss in the first half of 2012, we were pinning our hopes on a stronger second half driven by the traditional peaks for cargo <strong>and</strong> business travel. It’s <strong>to</strong>o early <strong>to</strong> say how strong that rebound will (or won’t) be, but with the world’s economies remaining depressed – <strong>and</strong> China’s growth slowing again – it’s hard <strong>to</strong> see much hope of a sustained recovery in 2012 at this point. We are all aware this is a cyclical industry <strong>and</strong> it appears we’re in a very stubborn downturn at the moment, coupled with the continued burden of high fuel prices. That means we’re going <strong>to</strong> need <strong>to</strong> stay focused on containing costs wherever possible. The challenges we face aren’t insurmountable by any means, but they certainly aren’t insignificant either. The key thing we need <strong>to</strong> do is ensure that our cus<strong>to</strong>mers keep coming back, <strong>and</strong> our new Regional Business Class will play an important role in this respect. Together with our amazing First Class, world-beating new Business Class, the new Premium Economy cabin <strong>and</strong> our great Long-haul Economy seats, I believe we will have the best suite of products out of any airline, anywhere in the world. John Slosar
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