for

THOUGHTFOODIssue 16 • May 2005

A newsletter for partners andfriends of CPCS we cherish...

In This Edition

Service Excellence in a New Era . . . 3

“Overseas Best Caterer of 2003“ 4

1st Runner up - Gone to CPCS

British Airways Recognizes CPCS as 4

a Partner in Excellence . . .

“Wok the Talk“ . . . 5

Ride High with New Hi-Loaders in CPCS 5

Safety Heroes . . . 2004 Airport Staff 6

Safety Recognition Scheme

Aeroflot . . . New First & Business Class 6

In-flight Service in Hong Kong

Eyes on Hygiene . . . 7

We Care . . . Donations for Tsunami Victims 8

Heart Warming Trip to India 9

“Pedal for Those Who Can't“ . . . 9

CPCS Sponsorship for the

18th Pedal Kart Grand Prix

Blend in with Nature . . . 10

Eco-Walk to Sha Lo Wan

CPCS Offered Kind Hospitality . . . 10

Charity Airport Tour

Our New Chinese Cuisine Consultant 11

Welcome to New Head of 11

Marketing and Customer Services

Department Wings . . .

. . . and Farewell to Marketing and 11

Customer Services Manager Leslie

An Applause to Vietnam Air Caterers 12

News Update for 12

Cebu Pacific Catering Services

Management Movements 12

CATHAY PACIFIC CATERING SERVICES11 Catering Road East, Hong Kong International Airport, Lantau, Hong KongTelephone : (852) 2116 2288 Fax : (852) 2765 7355 Sita : HKGHMCX

We welcome your comments on our newsletter. Please contact Ms. Wings Mok at�Telephone : (852) 2116 2013 Fax : (852) 2765 7355 E-mail: wings.mok@cpcs.com.hk

2004 did of course come with its own "unique" challenges for the global aviation industry

and Cathay Pacific Catering Services (CPCS). Security concerns continued to be a feature

and as a result of high fuel prices, what had promised to be a much more profitable year

for the airlines was actually quite the opposite, with industry analysts predicting a consolidated

industry loss of more than US$4 billion for the year. Nevertheless, given the issues faced

by the international aviation markets, our results were encouraging. Passenger numbers

increased significantly, over the previous year, and as a group I'm pleased to say that we

have provided a record number of meals.

Our profitability can only be attributed to the exceptional professionalism exhibited by

both management and staff in the continued efficient and effective use of our resources.

My sincere thanks to you all for ensuring that we controlled our costs and remained a viable

entity. Nevertheless, our results cannot give us a sense of complacency and we must be

both prudent and vigilant in 2005. It should be noted that although we have been successful

in maintaining our customer base, it has only been achieved in working closely with our

customers to reduce their own operating costs; average meal prices have gone down,

operational and commodity costs have gone up, and as a result, our yields have continued

to decline at an alarming rate.

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We must, therefore, ensure that we continue to provide a "seamless" service for all of our

customers, whilst simultaneously lowering costs and being more innovative in the products and

services we develop. We also need to respond quickly in facing whatever new challenges may

be out there in the second half of the year. One market segment that we all need to look at

more closely is the emergence of Low Cost Carriers (LCC); I do believe, that if they haven't

already arrived in your area of operation, then they will do so in the very near future. We need

to embrace these new airlines, LCCs have a specific market and are focused on developing a

new passenger base that wasn't there before. Although they may take some traffic from our

full-service airline customers, they are more likely to provide us with new opportunities to

provide alternative products and services, albeit in a completely different guise to the ones

we provide now.

Whoever we work with, we must guarantee that our partnerships continue to be based upon

trust, and the desire to provide the very best products and services possible. We have, of course,

demonstrated our professionalism in yet another turbulent year, we have won awards, we have

gained new customers in 2004 and glad to say, we have also acquired a new customer recently.

If we can continue to prudently manage our resources, for the benefit of all our stakeholders,

then CPCS can look to the future with confidence and know that we are providing secure jobs

and prospects, for everyone in the organisation. Once again, my heartfelt thanks, to each and

every one of you, for all of your efforts over the past year and I sincerely hope that the rest of

the year of the Rooster and 2005 bring us all wealth, health and happiness . . .

Alex Chau, CEO

Service Excellence in a New Era . . .

CPCS has won the Silver Prize of All Nippon Airways'

"Overseas Best Caterer" of the year 2003. Mr. Angus

Barclay, General Manager, Ms. Clara Ma, Commercial

Manager and Mori-san, our Japanese chef were all

invited to attend the reception of the award, which

was held at Narita ANA Hotel on 14th October, 2004.

The Silver Prize that CPCS won reflected CPCS' high

performance over a variety of criteria such as in-flight

meal quality, hygiene control, bacteria investigation,

incidents of foreign articles, equipment control, loading

quality and routine handling evaluation. The group

effort of CPCS means that it could never succeed without

good teamwork of its staff members. Let's keep it up!

“Overseas Best Caterer of 2003“1st Runner up - Gone to CPCS

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CPCS was honoured to be awarded by British Airways as one of their "Partners in Excellence 2003/04".

The award is in recognition of our ability to deliver a safe and consistent catering product which

has been fundamental to British Airways' success throughout the year. Once again, such award is

to recognize us as a supplier which does our utmost to provide the finest service to our customers.

British Airways Recognizes CPCS asa Partner in Excellence . . .

"Partners in Excellence 2003/04" Award

1 From left: Torahiko Sato (ANA), Shun-Ichi Furue (ANA), Mori Shizuaki,Clara Ma, Junko Yamauchi (ANA) and Angus Barclay

2 "Overseas Best Caterer" Award

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The above awards mean a lot to CPCS. They serve as an incentive and a drive behind

every one of us towards a new horizon of excellence together.

CPCS upgraded its equipment with a delivery of new hi-loaders

as part of its continual improvement plan. The purpose of

introducing the new catering trucks is to enhance our operational

efficiency as well as customer service. The chilling system in the

new catering trucks allows the temperature of the trucks to

come down even more quickly and hence further raises our

efficiency and quality standards. In 2004, 4 new hi-loaders

with the capacity of 16 tons were introduced in CPCS.

In recognizing the constant growth in demand for Chinese cuisine, CPCS "woks" the talk,

and expands its wok station and steaming pot facilities. The HK$2 million investment will

aid production of Chinese cuisine in even larger volumes with optimised processes and labour.

This new equipment is one of our milestones showing CPCS' continual commitment to meeting

our customers' needs, exceeding their expectations and satisfying their taste buds.

Made in Bangkok and Singapore, these new vehicles were

also installed with side doors for easier access. Moreover,

the new hi-loaders are equipped with a new transmission

gear box. Instead of using a manual gear-stick, the drivers

just need to press a button for different driving mode for

forward, reverse and neutral positions. This design allows

drivers to focus on the busy traffic in the ramp area instead

of the operation of the truck.

“Wok the Talk“ . . .

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Ride High withNew Hi-Loaders in CPCS

New wok station! Growth for business! Chef Cheung and Chef Paul enjoy cooking at the new wok station!

Show off time for our new hi-loaders!

In order to recognize airport staff who are exemplary safety role

models for other staff, the Airport Authority launched the 2004

Airport Staff Safety Recognition Scheme. Mr. Sunny Chow and

Mr. Shum Fuk Shing of CPCS were presented the awards on 25th

October in recognition of their strong concept in safety and

putting it into action. They helped prevent any accidents from

happening and made well thought out safety suggestions to

CPCS. Being ramp safety ambassadors, they provide ramp safety

briefings to our ramp operation staff regularly for the purpose

of raising their safety awareness. Moreover, both of them took

the initiative to communicate with AA's Duty Manager to discuss

ramp safety issues, role models indeed.

Russia's leading air carrier Aeroflot Russian Airlines launched its new first class and business class

on its Hong Kong - Moscow Route at a press conference and cocktail reception at the Grand Hyatt.

Flights between Moscow and Hong Kong are now operated by Aeroflot and its code share partner

Cathay Pacific Airways using Boeing 767 aircraft. Mr. Alexey Sumchenko, Aeroflot's General Manager

- Hong Kong, was joined by Mr. Andrey Smorodin, Consul General for Russia in Hong Kong,

Mr. Lev Koshlalov, Aeroflot's Deputy Director General Commercial from Moscow, Cathay Pacific's

General Manager Internetional Affairs, Mr. Ian Callender and Cathay Pacific Catering Services'

Executive Chef, Mr. Jorg Kubisz for the presentation which included a demonstration of the new

in-flight catering services and food by Aeroflot flight crew, and a show of the elegant new uniforms

which reflect the airline's distinctive new silver, orange and dark blue livery.

Aeroflot . . . New First & Business ClassIn-flight Service in Hong Kong

Safety Heroes . . .2004 Airport StaffSafety Recognition Scheme

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From left: Simon Tam (OPS), Raymond Au (OPS-CXO), Sunny Chow(OPS-ITO), Angus Barclay, Ronald Lau (PER), Kuby Hong (PER)

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1 From left: Aeroflot crew, Ian Callender, Alexey Sumchenko, Lev Koshlalov, Aeroflot crew, Andrey Smorodin

2 From left: Jorg Kubisz, Aeroflot crew, Lev Koshlalov, Aeroflot crew, Alexey Sumchenko

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To create awareness and to enforce proper hygiene standards, Production Department has

been conducting a hygiene blitz once a week. Furthermore, Production Department and Quality

Assurance Department launched a "100% Error Free Campaign" named "Eyes on Hygiene" in

October 2004. The main objective of this campaign is to motivate Production staff to follow

exemplary hygienic practices so that the hygiene standard is maintained at the highest level.

This campaign is divided into four quarters, and related to four different hygiene tasks

(as shown in the table).

Eyes on Hygiene . . .

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The first quarter "Grooming Grooming" was satisfactorily

ended. All Production staff showed their interest in this

campaign. They participated in the on-site quiz actively

and were willing to correct any errors. The award

presentation was held on 28th February 2005, and

managed by our Executive Chef, Jorg Kubisz. The winners

- Butchery and Special Meal sections - were greatly

appreciated because of their good performance. They

are becoming the Hygiene Super Stars in Production

area. Other guys from production, CATCH THEM UP!

Quarter Period Theme

1 Oct 04 to Dec 04 Grooming Grooming

2 Jan 05 to Mar 05 Don't forget hand washing

3 Apr 05 to Jun 05 Work place food safety: Equipment and food storage

4 Jul 05 to Sep 05 Hygiene Quiz: Risk of food contamination

Staff participating in the hygiene blitz!

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"100% Error Free Campaign" Billboard

Some of the winners (from left): Ma Ching Chung (BUT),Lai Hon Lok (BUT), Kwong Chi Ming (BUT), Ming Kin Hung(BUT), Mui Wai Bun (SPML), Wong Chi Kin (BUT)

The death toll continued to climb

in one of the most powerful

earthquakes in forty years that

unleashed a tsunami which

ravaged South and Southeast

Asia.

Anywhere from 228,000 to

310,000 people are believed to

have died as a result of the

tsunami, and the count is not yet

complete. Some are missing,

feared killed. Management of

CPCS immediately led and

encouraged staff to play their

part in the donation to the Hong

Kong Red Cross - South Asia Relief

Fund. CPCS has already

contributed HK$120,000 for the

disaster relief fund. In addition

to that, we have made

contributions to the relief effort

in other ways. CPCS staff have

been contributing to help those

in need by donating to the

UNICEF "Change for Good"

fundraising programme which for

three months was sent to South

Asian relief work. Collections

were made in the CPCS building

and as of 28th January, we have

collected HK$21,201.58. In

addition, we participated in a

2-day fund-raising event

organized by CX, and donated

400 homemade cookies. With

the help of two of our chefs,

Mr. Mak Lok Tin and Mr. Fung

Hung Kwok, all cookies were sold

out. Proceeds will go to support

disaster relief efforts. Thank you

all for your effort to make the

world a caring and loving place

to live.

We Care . . . Donations forTsunami Victims

From left: Fung and Mak of CPCS showedtheir love and support through theirhomemade cookies

From left: Daisy Ng (CX crew), Fung Hung Kwok (CPCS),Mak Lok Tin (CPCS), Louisa Lai (CX ISD)

Our General Manager, Angus Barclay,presented the cheque to Lady Wu, AssistantDirecter of the Hong Kong Red Cross

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Four colleagues from CPCS, together with other 30 companions from Cathay Pacific

Airways, joined a field trip co-organized by CX and The United Nations Children's

Fund. They stayed in Mumbai, India from 18th to 22nd September to see the operations

of UNICEF there, and get to know how the funds raised through the "Change for

Good" programme on CX flights is used for improving the lives of children there.

Before the trip, participants took part in a toy sale and fund raising event, and gathered

totally HK$61,000 for UNICEF in India.

"Change for Good", which started from 1991 on CX flights, encourages travellers to

donate foreign change to UNICEF on their return trips. Last year, over HK$7 million

was raised, making the total raised since the start HK$52 million. A little goes a long

way. Our spare change could help make a significant difference to the lives of all

underprivileged children in India. Please give generously while enjoying your travel!

The Pedal Kart Grand Prix is organized annually by the Hong Kong Human

Powered Vehicle Association and the Round Table to raise money for the less

fortunate. This time the event took place at Victoria Park on the 27th and

28th November 2004.

The theme of this event was to encourage athletic excellence while promoting

charitable acts. Its motto is "Pedal for Those Who Can't". This long-established

charity race in Hong Kong has raised over HK$23 million for charity since its

inception in 1986.

The concept was deceptively simple: teams of

enthusiastic people design, engineer, build,

train and race in Pedal Karts to raise money

for charity. Teams which managed to

successfully combine the three main aspects of

the race do well: that is to design a kart capable

of winning, build a kart well enough so that

it survives the race, and train a team capable

of lasting the race.

Although CPCS did not send any team to this

meaningful event, we did sponsor food and

beverage to the teams of Cathay Pacific Airways

to ensure the peddlers neither went hungry

nor thirsty, giving our support to them and the

event.

Heart Warming Trip to India

“Pedal for Those Who Can't“ . . .CPCS Sponsorship for the18th Pedal Kart Grand Prix

Seems to have lots of fun!

Children from India welcome the team from CPCSand CX

Cathay Pacific Airways' Pedal Kart

CPCS is always supportive of charity and gives confidence to the

staff to participate in events for good causes. In December, CPCS

co-organized an Eco-Walk to Sha Lo Wan with the Produce Green

Foundation. The walk raised funds to promote organic farming

and to develop environmental education activities.

Produce Green Foundation is a non-profit charitable organization

established in 1988 by a group of local enthusiasts concerned about

modern farming and protection of the environment. Through

various activities, the message of nature conservation to all walks

of life was spread, urging everyone to maintain a harmonious

relationship with nature.

The walk took place on 4th December. The day was cool but bright

and sunny. The route located on the north of Lantau Island is a

coastal path connecting Sha Lo Wan and Tung Chung. The path

is part of the Tung O Ancient Trail and remains a popular route

for visitors today. More than 140 persons participated in the walk

and raised more than HK$34,000 for the Produce Green Foundation.

A photography competition was held to spur participants to share

the beauty of nature with others, advocating the importance of

conservation of nature.

CPCS sponsored food and gave support to a charity airport

tour on 21st July. Led by Jardine Ambassadors, 13 students

with outstanding performance in the Health in Mind

Programme were awarded with an incentive tour to visit

two Jardine business units, the Excelsior Hotel and Jardine

Airport Services. They shared the special memories when

touring a British Airways aircraft. "Mindset Programme",

from which the students received awards, is intended to

make a difference in the area of mental health and change

peoples' attitudes towards mental health issues. The tour,

kicked off at the Chek Lap Kok International Airport, is to

recognize the contribution of all students and the efforts

of the teachers in promoting the awareness of mental health

over the past year. With the sponsorship of light snacks and

beverages by CPCS, the group enjoyed immensely!

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Blend in with Nature . . .Eco-Walk to Sha Lo Wan

CPCS Offered Kind Hospitality . . .Charity Airport Tour

1 The gang of nature lovers started off the walk

2 Our GM, Angus Barclay, presented the cheque to the Chairmanof Produce Green Foundation, Simon Chau

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Cheers! Jardine Ambassadors, students from "Mindset Programme",British Airways representative, and our Airline Account Manager,Gary Cheung pictured for memory!

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Wings Mok has joined the family of CPCS as the Marketing and Customer Services

Manager in December. Wings takes the lead to head the department and Airline

Account Managers, playing a front-end marketing and customer relations role.

Having served the hospitality industry for 8 years, Wings is excited to take up

her new and challenging position with CPCS.

A well-travelled food expert, Chef Cheung Chin Choi was born in Hong Kong and yet is highly

international. From 1984 to 1996, he worked for the Hyatt Group, and looked after the Chinese

kitchens of the hotels in Dubai, Jeddah, and Perth. In 1997, Chef Cheung dedicated his effort to the

Bali Hyatt where his acclaimed dishes were as well received as before. He became the Chinese Chef

in the InterContinental Chengdu in 1998 and was later the Executive Chinese Chef at the InterContinental

Phnom Penh in Cambodia. Throughout the journey of his culinary career, he demonstrated his

capabilities which were further sharpened on the way. His expertise was recognized by the Vocational

Training Council in Hong Kong, and he joined it in 2002 as the Chief Instructor. Before joining CPCS,

Chef Cheung was the winner of the silver medal in the 5th World Championship of Chinese Cuisine

in Guangzhou, China. With Chef Cheung as part of our team, we will continue to make every

endeavour to maintain and raise the standards of our always top quality products for our customers.

Our New Chinese Cuisine Consultant

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Welcome to New Head ofMarketing and Customer ServicesDepartment Wings . . .

Cheung Chin Choi

From left: Gary Cheung, Stanley Siu, Johnnie Mak,Wings Mok, Pat Cheung, KK Leung, Jackson Ng

Leslie Bailey, Marketing and Customer Services Manager of CPCS, said goodbye to all of us

to take up a new and challenging position. Leslie joined CPCS in 1997 as a chef and rejoined

the family in November 2003 as the head of Marketing and Customer Services Department,

leading his team in improving the service quality that our customers value so greatly.

Leaving with sadness, he wants to say thank you for all the hard work done by his team

and to everyone for bringing him unforgettable memories over the years of serving CPCS.

He would also like to take the opportunity to say that he is very proud to have worked for

CPCS and he will never forget his time with a tiptop company like CPCS.

. . . and Farewell to Marketing andCustomer Services Manager LeslieLeslie Bailey

Vietnam's surge in foreigner investment and tourism seems to benefit the total

meal units uplifted by Vietnam Air Caterers. The total meal units have reached

10,000 per day on average at its 20,000-meal unit facility in Ho Chi Minh City.

In the year of 2004, the company has gained 3 other catering accounts from

Garuda Indonesia, Air France and the most recent newcomer United Airlines

which started its first daily flight on 11th December 2004. This brings the total

number of regular Airline Partners uplifting from Vietnam Air Caterers to 16.

The company has strived to gain accreditation of OHSAS 18000. External audit

was conducted in December 2004. Other Systems in place are: ISO 9001:2000

and HACCP as well as 5S.

At the same time the company will commence its project of upgrading its ware-

wash section. A new ware-wash line will definitely be able to cope with the

increasing business in the year of 2005.

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Cebu Pacific Catering Services had just finished a two-day workshop on HACCP on 18th -19th November 2004.

Facilitated by Mr. Ruben Bueno Jr. of MacroAsia Eurest, Manila, the 13 team members were oriented and trained,

and had the initiative formally launched in preparation for the HACCP conditions to be implemented and subsequent

Certification targeted in the middle of the year 2005.

The year-end Board of Directors Meeting took place in the CPCS Conference Room on 24th November 2004 when

we were graced by the presence of Ms. Quince Chong, Cathay Pacific Director Service Delivery and Chairman of

CPCS Hong Kong. She arrived together with Mr. Alex Chau, CEO of CPCS, Mr. Mark Sutch, Country Manager for

Cathay Pacific Philippines, and Ms. Anna Cheung, Station Manager for Cathay Pacific Cebu.

The Shareholders meeting was also held with the attendance of Mr. Reynaldo Munsayac and Mr. Amador Sendin,

both from MacroAsia Corporation, Atty. Patrick Lucido, Corporate Secretary, Mr. Tony Garcia, General Manager

and of course Mr. Manuel H. Osmeña, Chairman of the Board. They were well catered for by Mr. Benjamin S. Jabat,

Cebu Pacific Catering's Executive Chef.

Last but not least, our hands are full in preparation to focus on improving our safety. This covers Food Safety

and Ramp Safety. Our first ever Family Day celebration was also kicked off on 18th December 2004 along with

the annual Christmas Party of the whole facility.

We look forward to the improvements we are undergoing and expect to move forward with a much faster speed!

News Update for Cebu PacificCatering Services

An Applause toVietnam Air Caterers

Appointments

Cathay Pacific Catering Services, Hong KongMr. Cheung Chin Choi Appointed as Chinese Cuisine Consultant (Apr 05)

Ms. Wings Mok Appointed as Marketing & Customer Services Manager (Dec 04)

Mr. Kenny Lau Promoted to Quality Assurance Manager (Nov 04)

Management Movements