Cathay Pacific Restructuring – Biggest Job Cuts Since 1997 Financial Crisis

Facing the inevitable, Hong Kong’s Cathay Pacific Airways has finally executed the last thing every employee wants – retrenchment. Close to 600 jobs, its biggest in 20 years, are to be cut thanks to a combination of complacency, arrogance and mismanagement. Under the excuse of “challenging business environment”, the airline announced the humiliating restructuring.

Employees were informed on Monday that 190 management jobs would go immediately while 400 non-management staff will be cut by mid-June. The cuts represent 25% of management staff and 18% of non-managerial positions, more than 30% cut revealed by Cathay’s top management in March. Hence, the news about the retrenchment was already made known 2 months ago.

Cathay Pacific Airlines Air Stewardess

However, employees were still hoping that it would not materialize and their rice bowl could be secured. But the financial trouble hitting the company was too serious. The premium airline unexpectedly swung into its second loss in 9 years – a shocking loss of HK$575 million (US$74 million; £60 million; RM328 million) for the financial year 2016.

Analysts had expected HK$369 million (US$47.5 million; £38.4 million; RM211 million) of profit instead. A year earlier in 2015, the airline made a staggering profit of HK$6 billion (US$773 million; £625 million; RM3.4 billion). Out of HK$93.2 billion in costs, Cathay’s army of 33,700 employees (June, 2016) amounted to HK$19.9 billion – about 21%.

Cathay Pacific Plane Flies Over Kowloon

In comparison, Singapore Airlines Ltd. had 13,983 employees (March, 2016) while Air China Ltd. had 27,442 (June, 2016). Ivan Chu Kwok-leung, its CEO (Chief Executive Officer) for three years since March 2014, was replaced with COO (Chief Operating Officer) Rupert Hogg on May 1. The post of COO was scrapped.

Essentially, the 600 jobs cut – its largest since the 1997-98 Asian Financial Crisis – would save it at least HK$500 million (US$64 million; £49 million; RM276 million) annually or roughly 6% of total staff costs. In 1997-98, about 800 employees were axed. Staff retrenched on Monday will receive a redundancy package of 12 months salary, extended medical benefits and counselling.

Cathay Pacific Airlines - Crew Members

Cathay Pacific said no frontline employees, cabin crew or pilots would be affected by the latest job cuts because the airline was still growing, but staff in those positions would be asked to deliver productivity improvements. However, sources said additional 200 junior-rank jobs could be axed in second phase – most likely in the summer – including those in the cargo, finance and human resources departments.

Besides bloated employees, including excessive 350 senior managers, the Hong Kong flagship carrier also faces fierce competition from mainland China. While its competitors offer more direct flights, more seats and lower fares, Cathay greedily continues charging more with inferior services. Customers can fly “Business Class” for the same price that Cathay charges for “Premium Economy”.

Cathay Pacific Airlines - Business Class - Champagne

Once a dominant player in Asia’s premium air travel market with few serious rivals, Cathay Pacific hits turbulence, despite the booming travel demand in the region. The fact that it could fire 190 management staff immediately goes to prove that they were not needed in the first place, clearly a mismanagement but ignored by top management completely until it’s too late.

Cathay’s most serious problem was its losses in fuel cost. Cathay has had a bad practice of hedging fuel jet for as long as 4 years, obviously not a clever business decision considering the collapse of crude oil back in 2014. Now, Cathay Pacific said it will only hedge jet fuel for 2 years. In the first half of 2016 alone, the airline’s loss was HK$4.49 billion on fuel hedging.

Cathay Pacific Airlines - Planes On Tarmac

In addition to job cuts, the airline has said it will consider shifting more routes to its short-haul arm, Cathay Dragon. But Cathay Pacific needs more than job cuts and routes shifting for its long-term solution. The airline business model was hatched during the era where low-cost carrier was non-existent. What it needs is a total reboot and re-engineering of its business model.

The fact remains that Cathay has been slow in responding to changes such as the rise of both low cost operator and premium player – Air China Ltd., China Eastern, Emirates, Etihad Airways and Qatar Airways. Gone were the good days where Cathay could tell their customers “take it or leave it”. They do not monopolize the premium sector anymore.

Has Ugandan rebel leader Joseph Kony been defeated?

Pierre Mbolihundo and other members of his vigilante group aim to keep Obo safe

The international hunt for Joseph Kony seems to be over, but the notorious rebel leader, who was first chased from his native Uganda to South Sudan and then to the Central African Republic, is still at large. So what do those civilians most vulnerable to attacks from Kony's Lord's Resistance Army do now?

Joseph R. Kony is the leader of the Lord's Resistance Army, a guerrilla group that formerly operated in Uganda. Wikipedia
Born: August 1961, Uganda
Nationality: Ugandan
Height: 5′ 11″
Known for: Leader of the Lord's Resistance Army (LRA)
Children: Salim Saleh Kony, Ali Kony
Parents: Nora Obol, Luizi Kony

Pierre Mbolihundo tells me the wood for his locally made shotgun comes from the jungle.
The trigger and barrel, which looks like a small water pipe, come from a big town to the west.
The prized possessions in his armoury are the imported "00" shells.
"Inside there are 15 or 16 pellets. If you see the enemies and shoot them, one bullet can kill five to 10 people."

In an area under threat of attack from Joseph Kony's Lord's Resistance Army, and many other rebel groups, it is important to be resourceful.

Home-made gun .The gun is home-made and the other weapons are basic

Mr Mbolihundo is president of the Arrow Boys, a local vigilante group here in the town of Obo, in south-eastern Central African Republic.

But they are not trained and they are mostly armed with basic weapons like spears, and machetes.
The town has been relatively safe thanks to the presence of Ugandan troops supported by American forces. But now they are pulling out, saying that Kony is weak and irrelevant.
People here are not so sure.

Kony and his men first came to the Central African Republic in 2008. And as in South Sudan, the Democratic Republic of Congo and Uganda, here they are accused of looting and carrying out killings, abductions, and rapes.

Joseph Kony and the LRA

Leader of the Lord's Resistance Army (LRA), Joseph Kony.Image copyrightGETTY IMAGES
Kony founded the LRA in Uganda in the late 1980s, saying he wanted to govern according to the Biblical Ten Commandments

LRA known for terrorising population of northern Uganda
Abducted thousands of children to fight

International Criminal Court issued arrest warrant for Kony in 2005
Kony and LRA forced out of Uganda in 2006

#Kony2012 video sparked campaign to find him

US backed regional force to find Kony in 2011

In 2011, lobbying led by US charity Invisible Children prompted President Barack Obama to send about 100 soldiers to support the country's dealing with the LRA.

The aim of the mission was to back armies that have "the goal of removing from the battlefield Joseph Kony and other senior leadership of the LRA".

Six years on, Kony is still on the run and has a small force of around 100 fighters. But the US and Uganda, which had more than 2,000 soldiers here, have ended their mission.
"The US sees him [Kony] as irrelevant, no longer a threat. When you look at the LRA's effectiveness it's no longer what it used to be," argues US army spokesman Lt Col Armando Hernandez.
This corner of the Central African Republic has been relatively peaceful but its society has been changed dramatically by the insecurity.

Map of region
Living in a rainforest that stretches through the middle of the continent, hunting for meat, gathering wild honey and farming were fundamental to the economy.

But the militia threat has forced people to stay in towns.

Obo has become a military town; most people make money from trading with the Ugandan army.
Shops, restaurants and bars are popular along the humble main road. A lot of goods like soap, clothes and packaged food are brought in from Uganda with military convoys.
The soldiers have also brought problems.

In January, the BBC reported on allegations of sexual abuse against the Ugandan army in the CAR. We spoke to a young girl raped at 12 and made pregnant. Another teenage girl was attacked and molested in a field.

Human Rights Watch has since published a statement on the allegations.
Uganda's army spokesman Brig Gen Richard Karemire denied the accusations at the time, but now he says action is being taken.

"We have investigations. Whoever is found culpable will definitely be punished. We have two cases - already they are being tried in our court martial."
Pierre Mbolihundo and family

Mr Mbolihundo wants to protect his family and other members of the community

There are now fewer LRA attacks here and in neighbouring Democratic Republic of Congo than there were when the force first arrived.

But the LRA is still a threat and it is only those brave enough who venture out.
Two months ago, 52-year-old Roger Guinimboli was lucky to survive an LRA attack. He has a farm and small home in the countryside.

"When I woke up, I saw a man in uniform pointing his gun at me. They took everything from my house and my cousin's house including food like peanuts. They told us to carry the things to their camps before releasing us."

Ugandan soldier with gun

Ugandan soldiers will no longer be around to protect people in Obo

The LRA is just one of several armed groups that threaten the town. Christian and Muslim militia are also fighting as the fall-out from the country's civil war continues.

Ledio Cakaj has worked in the region for years and is author of When the Walking Defeats You: One Man's Journey as Joseph Kony's Bodyguard.

"Sadly it does not bode well for the civilians," he told me.
"[Government] troops and UN peacekeepers are unable to deal with various armed groups operating in the area. But they are the ones who are likely to attempt to fill in the security vacuum left by the retreating Ugandan and US troops."

As for Kony, he said: "As long as he is alive or free, he will always be able to regroup and reorganise his remaining forces as well as order the abduction of many others. Historically he has shown incredible resilience and an ability to survive."

Obo from the air

Obo is surrounded by the jungle where Kony and his men are believed to be hiding
No-one I spoke to seemed to have a ready answer as to how to provide immediate protection for the people in Obo and other towns in the region. Civilians here now have to face the same insecurity as the rest of the country, which has been in a bitter war.

As for the local vigilante leader, Mr Mbolihundo tells me he is trying to get his men ready.
"The LRA are still in the bush. If they know that the Ugandan army is going home, they will come here to disturb us because they are close."

Updated - Deaths confirmed after Manchester Arena blast reports - Manchester Arena blast: 19 dead and about 50 hurt

A number of people have died and others have been injured following a reported explosion at Manchester Arena.

Summary
Greater Manchester Police say there have been number of fatalities
People are urged to stay away from the area around Manchester Arena
Rail lines blocked at nearby Manchester Victoria station
Ariana Grande concert was evacuated
A spokesman for the singer confirms she is unharmed

Witnesses reported hearing a "huge bang" following a pop concert by US singer Ariana Grande.
Greater Manchester Police said there are a "number of confirmed fatalities and others injured".
Witnesses said they heard two loud bangs, reported to be near the ticket office of the arena. The cause of the reported explosion is unknown.
Manchester Victoria station, which is close to the concert venue, has been closed and all trains cancelled.

Possible terrorist incident'

Daniel Sandford
Home Affairs Correspondent

The North West Counter Terrorism Unit is treating the incident in Manchester as a possible terrorist incident, sources said.
Senior national Counter-Terrorism officers are assembling in London and are liaising with the Home Office.
Early estimates put the number of fatalities in double figures, but these are very early stages.

Greater Manchester Police tweeted to urge people to stay away from the area.
'Screaming and running'

A number of eyewitnesses have described the confusion in the aftermath.
Robert Tempkin, 22, from Middlesbrough, said: "Everyone was screaming and running, there were coats and people's phones on the floor. People just dropped everything.
"Some people were screaming they'd seen blood but other people were saying it was balloons busting or a speaker had been popped.
"There were lots of ambulances. I saw somebody being treated. I couldn't tell what had happened to him."

Josh Elliott, speaking to BBC Radio 5 Live, said he was shocked by news of the fatalities.
"A bang went off and everyone stopped and screamed... we basically hit the deck," he said
"It was bedlam… it was horrific.

"We got up when we thought it was safe and got out as quickly as possible.
"People were just crying and in tears... police cars were everywhere.
"We just wanted to get out as quickly as possible because we didn't know what was going on."
Michelle Sullivan, from Huddersfield, was attending the concert with her daughters, aged 12 and 15.
"It was really scary," she said. "Just as the lights have gone down we heard a really loud explosion... Everybody screamed.

"When we got out they just said 'keep on running, keep on running'."

FLYING HIGH? SIX AIR STEWARDESSES ARRESTED IN SEPANG DRUG RAID

SEPANG – Six air stewardesses were among 12 people arrested in a drug raid at a house in Kota Warisan on Friday.

Police also seized about 0.05g of ketamine, along with drug paraphernalia, including ringgits which have been rolled-up to be used in consuming the drug.


It is learnt that all the suspects tested positive for drug, which was obtained from around the area.

Sepang OCPD Asst Comm Abdul Aziz Ali said the suspects were aged between 21 and 25 years.

– ANN

Cop shoots pregnant girlfriend dead

PETALING JAYA: A police inspector is suspected of shooting dead his pregnant girlfriend in Kampung Kakai, Serian in Sarawak on Sunday.

A police report was made on the incident at 3.32pm by a neighbour of the victim.

The neighbour, Laurence Michael, said he was awoken from his sleep at his aunty's house by a gunshot.

The report said that the victim’s mother ran over to his house to alert him that her daughter had been shot.

Michael then went over to the house and found that the victim was lying motionless on the floor.

Serian police chief Deputy Supt Aswandy Anis confirmed the incident.

It is understood that the victim was two months pregnant.

It is said that the suspect is an inspector based in Belaga.

Serian
Town in Malaysia
Serian is a town, and the capital of the Serian Division separated on 11 April 2015 from Samarahan Division, Sarawak, Malaysia. It is located about 40 miles from Kuching. Sub-district headquarters towns are Siburan and Tebedu. Wikipedia
Weather: 77°F (25°C), Wind S at 2 mph (3 km/h), 98% Humidity
Population: 90,763 (2010)

Based on earlier investigations, the suspect had walked into the room of the victim and shot at her.

A police spokesman said that the victim was a divorcee, and a girlfriend of the suspect and not his wife.

This was because police was not able to find official records that the couple was married.

"But we do not know if he secretly married the woman," the spokesman said.

The spokesman added that is was a "clear cut case" and investigations would focus on the personal aspects of the suspect and victim.

Police also revealed that the suspect escaped using a police car.

At 9.35pm, police confirmed that they arrested the suspect in front of the Emart supermarket at Matang.

"His weapons and bullets have been confiscated," a police report said, adding that the suspect did not resist arrest.

Cop shot pregnant girlfriend over personal issues, says S'wak police chief

BY STEPHEN THEN

Sarawak police commissioner Datuk Mazlan Mansor (centre) at a press conference on Monday.
 
MIRI: Police are still investigating whether the woman allegedly shot dead by a police inspector in Serian, near here, was married to the suspect.

The suspect, an inspector in Belaga who was arrested late Sunday following the 3.30pm incident, is expected to be brought to the court for a remand order later Monday

It is learnt that the woman was two months' pregnant. There was talk that the victim and the suspect were married to each other.

Sarawak Police Commissioner Datuk Mazlan Mansor said, however, that the marriage was not registered "so officially they were boyfriend and girlfriend before the tragedy".

"An initial probe shows that the motive for the shooting was over personal issues.

"The inspector is divorced. He was not yet officially married to the victim because there is no record of their marriage.

"So far, our probe shows that their relationship was that of boyfriend-girlfriend.

"He may have quietly married her but we are still investigating that," Comm Mazlan said Monday, adding that police are checking if the victim was pregnant.

Comm Mazlan said the pistol used in the shooting was officially assigned by the police force to the suspect.

"He is an inspector in Belaga and he was in Kuching for an official meeting.

"He was supposed to go back to Belaga after the meeting but the incident happened," Comm Mazlan said.

No difference between Malaysia and Singapore - If you are the right race - you can not do anything wrong even you messed it up

With regards to NOL (once Singapore's national shipping line, wholly owned by Singapore), the prophetic observations of the late great Dr. Goh bears it out.

On the back of his scholastic academic, Lieutenant General and Chief of Armed Forces, Ng Yat Chung, was appointed executive of Temasek Holdings after leaving the military.

He became the CEO and Group President of NOL in 2011 and singlehandedly brought NOL to its knees.

Under the stewardship of General Ng, NOL saw losses rising to US$460 million, while its debts grew more than US$4 billion.

Ng Yat ChungChief Executive of Neptune Orient LinesNg Yat Chung is a Singaporean business executive and former army general. He was the fifth Chief of Defence Force of the Singapore Armed Forces from 2003–2007 and held the rank of Lieutenant-General. WikipediaBorn: SingaporeEducation: University of CambridgeService/branch: Singapore Armed ForcesCommands held: Singapore Army

French maritime logistics, CMA CGM acquired NOL in mid 2016, last year and managed to turn the company around in slightly under a year.

The Business Times on Friday, 19th May 2017, reported...."Container shipping line CMA CGM posted higher first-quarter profits, helped by a turnaround at recently acquired NOL, and gave an upbeat assessment for the current quarter. The French-based group reported a first-quarter net profit, including Singapore-based NOL which it consolidated in June last year, of US$86 million compared with a US$100 million loss in the same period of 2016."

While General Ng messed up NOL in 5 years, CMA CGM managed to put it back in order, in under a year.

Never mind about his abject failure in NOL, today General Ng Yat Chung is the Chairman of the Board of Trustees for the Singapore Institute of Technology and a Trustee of the National University of Singapore. He is also a member of the board of Singapore Power and an independent director to the board of Singapore Press Holdings.

God save Singapore.

Shipping firm CMA CGM upbeat as profits rise again

Friday, May 19, 2017 - 22:44

 Container shipping line CMA CGM posted higher first-quarter profits, helped by a turnaround at recently acquired NOL, and gave an upbeat assessment for the current quarter in another sign that the shipping industry is emerging from a slump. PHOTO: AFP

[PARIS] Container shipping line CMA CGM posted higher first-quarter profits, helped by a turnaround at recently acquired NOL, and gave an upbeat assessment for the current quarter in another sign that the shipping industry is emerging from a slump.

The French-based group reported on Friday a first-quarter net profit, including Singapore-based NOL which it consolidated in June last year, of US$86 million compared with a US$100 million loss in the same period of 2016.

This was also above the US$45 million net profit it recorded in the previous quarter when the privately held firm returned to profit after heavy losses earlier in 2016 during a severe downturn in container shipping.

Vessel overcapacity and tepid economic growth have eroded freight rates in recent years, contributing to the collapse of South Korea's Hanjin Shipping in 2016 and triggering consolidation moves, including CMA CGM's US$2.4 billion takeover of NOL.

Market leader Maersk Line and German rival Hapag-Lloyd reported first-quarter losses last week but each pointed to improving demand that was expected to boost earnings in the rest of the year.

SEE ALSO: Spain police find Singapore ship captain drifting at sea
CMA CGM, the world's third-largest container line, said in its results statement that it was confident operating profits would rise further in the current quarter, citing healthy volumes and a "continued improvement in freight rates".

The family-owned group's core earnings before interest and tax (EBIT) reached US$252 million, up from US$3 million a year earlier and US$193 million in the previous quarter. The group EBIT margin rose to 5.5 per cent from 4.2 per cent in the prior quarter.
A net profit of US$26 million for the former NOL business represented a first quarterly net profit for NOL since 2011, CMA CGM said.

Group sales rose 35.9 per cent from the year-earlier period to US$4.62 billion. Volumes increased by 34.2 per cent overall, but excluding NOL fell by 2.2 per cent, reflecting a focus on profitable growth, CMA CGM said.

Unit costs fell again, despite higher fuel prices, the company said, without giving figures.
CMA CGM is aiming to reduce its overall costs by US$1 billion in an 18-month plan that runs to the end of 2017, and has also pledged significant synergies from the integration of NOL.
REUTERS

Shame on you Nazri for taking the poor old man Mahathir on a wild goose chase

KUALA LUMPUR— Umno leader Datuk Seri Nazri Aziz claimed today that it was the police who had ordered his party members to lodge reports so as to halt a debate between him and former prime minister Tun Dr Mahathir Mohamad.

In a special question and answer session with the public today, Nazri, who is Padang Rengas Umno division chief and Umno supreme council member, said he was shocked when he found out and had confronted his party members, who then purportedly informed him that they were told to do so by the police.


“Actually the police do not want to allow me to debate with Dr Mahathir. It’s true, because they said it is based on security concerns, as there were many, many police reports made, saying that the villagers did not agree to the debate being held, on the reason that their security will be compromised.

“I asked the police; give me the report, I want to see. They didn’t give. Though they didn’t give, I got it still,” Nazri said, adding that he received five reports, all of which had the same template, with the same sentence structure.

“It was all typed. Not even handwritten, but those who signed below it, my Umno branch leader, my village head was also there. My village head one person, and my Umno Youth member. To all three of them, I asked — ‘Why did you do this work?’ They said police ordered them to,” he added.

“Truly the police played us out. I don’t care if the police are listening. Truly they played us out,” a furious Nazri said.

He said that it was ridiculous to cite security reasons for a mere debate between him, a Cabinet minister, and Dr Mahathir.

He said he was also angry, as he was concerned that the public would label him a cowardly person.

The tourism minister said it was then that he contacted Karangkraf Media Group’s managing editor and owner Datuk Dr Hussamuddin Yaacub to ask that the debate be held at his premise.

‘A day before that, it was cancelled. On the same reason. Security violation,” Nazri added.



He said he felt troubled by the whole arrangement, as Dr Mahathir’s permit to organise a political rally in his parliamentary constituency was not cancelled.

“If there is a debate, whatever he says about Datuk [Seri] Najib [Razak], I can answer. But if you give permit for the rally, my friends, if you heard what Dr Mahathir said, that Prime Minister Najib is a robber, thief, I cannot answer. Why? Because it’s his political rally,” Nazri added.

The dialogue between Dr Mahathir and the tourism and culture minister was originally scheduled for March 25 at the Mara Junior Science College in Kuala Kangsar, Perak.

MALAY MAIL