B-HXB
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Cathay Pacific Posts HK$1.4b Profit First Half

Wed Aug 07, 2002 6:19 pm

Cathay Pacific has posted an interim profit of HK$1.4 billion for the first half of operations for 2002, an increase of 7.1% from the same half in 2001. More information at http://www.cathaypacific.com/intl/aboutus/press/0,3845,31342-81837,00.html.

On a separate note, re-elected union president Nigel Demery has vowed to increase industrial action from the current work-to-rule campaign, after being returned to the leadership with just under 66% support from votes casted (the remainder going to candidates who favoured a more conciliatory approach).

Undoubtedly the $1.4 billion profit will do nothing to calm the situation between the pilots and the company. Demery has not specified what type of action the pilots will take, except that it will not be the same maximum safety strategy adopted last year. He says that he will make one last approach to the company before a meeting on October 9.

Cathay Pacific Director Corporate Development Tony Tyler repeats that the company will not negotiate under threat of industrial action and that the airline will "move heaven and earth" if the pilots disrupt operations.
 
CX Flyboy
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Wed Aug 07, 2002 7:05 pm

Excellent news. Hopefully the second half will generate more profits also, and that this union/management stuff can get resolved asap.
 
B-HXB
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Thu Aug 08, 2002 12:57 pm

The HK$1.4b profit posted by CX surprised analysts who were expecting up to a 65% decrease on first half profits 2001.
 
CX Flyboy
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Thu Aug 08, 2002 5:40 pm

Never trust the speculation that comes before the results announcement, especially at Cathay!!! Management have been downplaying any possibility of profits and every Friday when we get our weekly staff news summary it's always doom and gloom, as it keeps employees in check. In fact I am surprise that they didn't find some way of diverting the profits so that they wouldn't be declared.. or maybe that's just me being cynical!
 
donder10
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Thu Aug 08, 2002 5:48 pm

Private companies exist to make profits.Unions exist to prevent this most of the time Smile
 
B-HXB
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Thu Aug 08, 2002 6:50 pm

I'll stay out of the management vs. union debate  Smile.

What about the other airlines? Is it just me, or does CX always seem to be one of, if not the first of the major airlines to post financial results?
 
CXCPA
Posts: 356
Joined: Sat May 27, 2000 11:14 pm

RE: Cathay Pacific Posts HK$1.4b Profit First Half

Thu Aug 08, 2002 9:38 pm

Do anyone know why CX earn so much?? It is because people do not want to travel by American carriers after September 11, so CX have much business and American carriers lost much business! Checking employees is usual. The management can use these information to decide who can promote, who should be fired. But some naive employees do not know about this, they try to use these checkings as an excuse to demand something unrealistic (e.g pay rise)in the economy downturn....
So CX may....
No salary reduction or job lost is lucky!!!
Hopefully(or unfortunately), CX can sacks such naive employees because they can find replacement from bankrupted airlines. UAL may bankrupt soon. Those naive employees should stop dreaming now.
If some CX emplyees think that they cannot get something reasonble and/or CX management are poor, they should change their employers or operate a company themselves! They should not do something disgusting to achieve their demand....
 
El Al 001
Posts: 978
Joined: Sun Oct 31, 1999 11:50 pm

RE: Cathay Pacific Posts HK$1.4b Profit First Half

Thu Aug 08, 2002 9:45 pm

Yep.. and CX stocks are up up and away...
I read that CX load factor for June was as higher as 77.9%, thats a great deal of flown capacity.
Anyway, CX seems to me as a great airline.

Michael
 
hkg82
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Fri Aug 09, 2002 3:47 am

This is great news for CX & the second half should perform very well too. They've been adding capacity & increasing flight frequencies to key destinations such as LHR, LAX, BKK & AKL. The only thing worrying me is the pilots dispute, they are set to intensify the industrial action in the coming months & the union has issued a warning to CX that it will disrupt the schedule & severely affect passengers. Why oh why can't they just solve it once and for all?!

Hkg82.
 
B-HXB
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Fri Aug 09, 2002 2:39 pm

Re: the pilots' dispute. It doesn't actually help that neither group can seem to agree on what they are arguing over. Reading the South China Morning Post, the articles simply refer to the 'long running dispute' with no mention of what is actually the dispute!

If I remember rightly, the union wanted some change to rostering but CX claimed that the dispute was over pay. The strange thing was after CX fired those 51 pilots they gave the remainder a pay rise of about 4 - 9%. So if this is true, then shouldn't the solution be simple? CX pilots can accept a pay cut in return for the company making the requested changes to rostering. Thus CX will recoup any additional costs involved in adjusting the rostering and the pilots get what they want.

Of course this is a very simple view but as far as I have read in the media, this is what the dispute essentially boils down to.
 
lutfi
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Fri Aug 09, 2002 2:50 pm

The dispute was originally about rostering. However, in May 2001 the AOA withdrew from roster talks, and demanded pay, rostering and benefits talks.

The talks dragged on. CX management offered a “final” deal (about 4-9% pay increase, some improvement on rostering). However, this was a long way short of what the AOA wanted, so they went on LIA.

Cathay imposed the pay and roster deal anyway, and fired a bunch of pilots. Then they said that they won’t talk to the AOA while the AOA is still trying to hurt the company.

The AOA now mostly wants to get the fired pilots their jobs back, because the president of the AOA promised (before all this started) that there would be no deal until anyone fired during the dispute was reinstated.
 
jumbo744
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Fri Aug 09, 2002 4:22 pm

Is AOA still providing financial support to those 51 fired pilots? As I know some of them had earned more than HK$1 million per annum, so how much they can get from AOA now?

 
B-HXB
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RE: Cathay Pacific Posts HK$1.4b Profit First Half

Fri Aug 09, 2002 6:00 pm

Have any of the pilots been rehired?