THOUGHT - Cathay Pacific Catering Services

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					FOODTHOUGHT    for

                                Issue 18 • Jun 2006

    A newsletter for partners and
               friends of CPCS whom we cherish...
 In This Edition

 CPCS 2006 Mid Year Review                                        3

 AA Environmental Best Practice Achievement 4
 Award 2005/2006                                                                    Home Sweet Home . . .                      9
                                                                                    CPCS Gingerbread House

 2005 Hong Kong Awards for Industries                             4
 Honouring CPCS' Merit in Environmental                                             Four New Customers are in Town             10

                                                                                    Life Changing Trip to South Africa         12
 Continuous Caring . . .                                          5
 Caring Company Award 2005/2006
                                                                                    Creative Recipes Shine at the California   13
                                                                                    Strawberry Cooking Contest
 Care and Share . . .                                             5
 Food Bank Donation
                                                                                    Up Close and Personal with New Marketing 14
                                                                                    and Customer Services Manager
 Superior Chinese Cuisine . . .                                   6
 "Best Chinese Food in the Air" 2006
                                                                                    New Chinese Cuisine Consultant Brings      15
                                                                                    Culinary Inspiration to CPCS
 Media Interview Highlights Longest                               7
 Serving Staff of CPCS
                                                                                    Cebu Pacific Catering Services             16

 Meritorious 2005 Long Service Awards for                         8
 Dedicated Staff                                                                    CLS Catering Services Vancouver            16

                                                                                    CLS Catering Services Toronto              16

11 Catering Road East, Hong Kong International Airport, Lantau, Hong Kong
Telephone : (852) 2116 2288 Fax : (852) 2765 7355 Sita : HKGHMCX
We welcome your comments on our newsletter. Please contact Ms Pat Cheung at
Telephone : (852) 2116 2012 Fax : (852) 2765 7355 E-mail :
CPCS 2006 Mid Year Review
On one hand, the global aviation industry seems to be clear of the dark
clouds of slow air traffic after the 9/11 terrorist attacks in the United States,
the SARS outbreak and the Boxing Day Tsunami in Asia. The 2005 annual
results indicated that international passenger traffic grew by 7.6% and
international cargo traffic increased by 3.2% over 2004 (source: IATA).
In the first four months of 2006, aviation traffic growth soared to yet
another new height. In the recent press release by IATA, the data showed
a 6.9% growth in passenger traffic and a 5.7% growth in cargo traffic
over the same period in 2005.
                                                                      Alex Chau, CEO

On the other hand, the global aviation industry is hard hit by rocketing fuel prices. The crude oil price is constantly above US$70
per barrel and that is damaging the profitability of airlines. Recently IATA estimates there have been losses of US$3 billion for
the global aviation industry in 2006 as fuel woes outpace the re-growth in traffic. Airlines have to do everything they can to
slash costs simply in order to stay in business.

The yield erosion effect to established airlines resulting from the emergence of Low Cost Carriers is nothing new within the
aviation industry. The airfare from London to Paris recently offered by an established airline is just US$19. This is a true reflection
of yield erosion. I do believe that this is only one of the many offers nowadays.

The in-flight catering industry is changing. Under the tough competitive environment in the aviation industry, airlines have to
cut catering budgets which adversely affects the revenue and bottom line of in-flight caterers. With the introduction of in-
flight food sales by many established airlines in the United States and Europe, it will probably affect the traditional in-flight
meal concept and further damage the profitability of in-flight caterers.

The revival of the world economy leads to an increase in costs. The most significant cost drivers of in-flight meals - material
costs and labour cost - are on an upward trend. Inevitably, this causes an imbalance between the costs and revenues that will
further trim the bottom line of in-flight caterers.

Over the past years, the in-flight catering industry has faced the threats of different food scares - mad cow disease, avian flu,
foot and mouth disease, malachite green in fish and so on - which have created pressure on supply chain management and
costs. The threat of an Avian Flu epidemic is now at the top of airlines' agenda. By its nature the in-flight catering industry is
reliant upon the airlines it serves, so it cannot escape from the threat. We, at CPCS, have put a lot of effort in preparing
contingency plans to ensure our readiness to cope with possible disturbance to our operations in all scenarios as a result of
natural disasters.

In facing all these challenges, CPCS must remain competitive to ensure our future vitality. At Hong Kong, we have been working
closely with our consultant, Proudfoot Consulting, on a project with the aim of improving the productivity and process flow.
Its goal has been clearly delivered through the slogan – "Fly to New Heights". However, CPCS continually invests in upgrading
facilities: a brand new Chinese cooking range in the Hong Kong kitchen, an upgraded security system in the Vancouver premises
and an automated rice cooking machine in the Taipei kitchen. It demonstrates CPCS' commitment to providing value-added
products and seamless services to our customers, and our determination to achieve continual improvement.

We have made a good start to 2006 as both the Hong Kong and Taipei kitchens registered new records for a single day production
in January. I know that our team is working extremely hard and the momentum will be kept going, for which I would like to
express my heartfelt thanks to our team. We, at CPCS, are determined to fly to new heights!

     AA Environmental Best Practice
     Achievement Award 2005/2006
    CPCS has been awarded the "Airport Environmental Best Practice Achievement Award" in the Airport Environmental Best Practice
    Competition 2005/2006 organized by the Airport Authority Hong Kong. The competition was launched with the aim to recognize
    those business associates within the airport that have demonstrated good practice in environmental protection.

                                                      The theme of this year’s competition was "Green Restaurants". The competition
                                                      attracted participants from over 80% of the eateries and catering franchisees at the
                                                      Hong Kong International Airport.
                                                      To maintain sustainable development at the airport, CPCS has incorporated
                                                      environmental concepts into our business management. A variety of environmentally
                                                      friendly measures including pollution control, indoor environmental quality control,
                                                      resources conservation and energy saving projects have been implemented into our
                                                      daily production and operational processes.

                                                      The Award Presentation Ceremony was held on 28th March 2006. Mr Edwin Yung,
     From left: Edwin Yung, Anthony Myers, Resident   our Engineering Manager, received the award on behalf of CPCS. To address our
       Manager of Headland Hotel and Hans Bakker,     social responsibility in environmental conservation, CPCS will continue to make great
           Commercial Director of Airport Authority
                                                      efforts to strike a balance between business growth and care for the environment.

    2005 Hong Kong Awards for Industries Honouring
    CPCS' Merit in Environmental Performance
    The Hong Kong Awards for Industries was first launched in
    2005 by merging the former Hong Kong Awards for Industry
    and the Hong Kong Awards for Services, established in 1989
    and 1997 respectively. The Awards Scheme aims at
    recognizing the outstanding achievements of Hong Kong
    enterprises in their move towards the use of higher
    technology and higher value-added activities. The scheme
    covers seven categories, namely Consumer Product Design,
    Consumer Service, Innovation and Creativity, Technological
    Achievement, Machinery and Equipment Design,
                                                                          xxxxxxx xxxx xxxx xxxx xxxxx
    Environmental Performance, and Productivity and Quality.           Group picture taken with all awardees with the presence of the Chief Executive of
                                                                       the HKSAR, Donald Tsang

    This year, CPCS was honoured to receive the Environmental Performance Certificate of Merit. To demonstrate our awareness in
    environmental conservation, CPCS has not only strictly complied with relevant environmental legislation and codes of practice,
    but has also taken an initiative to incorporate and maintain an environmental management system within our premises. The 3-R
    principles of "Reduce", "Re-use" and "Recycle" have been applied throughout our daily business operations, with an objective to
    achieve a win-win situation - to green up our environment while at the same time saving costs from the business point of view.

    Our General Manager, Mr Angus Barclay, and our Quality Assurance Manager, Mr Kenny Lau, received the award at the presentation
    ceremony, which was officiated by the Chief Executive of the HKSAR, Mr Donald Tsang, on 27th February 2006.

           Continuous Caring …
Caring Company Award 2005/2006

The Caring Company Recognition Ceremony 2005/2006 was successfully held
on 23rd February 2006. This year, The Hong Kong Council of Social Service
awarded CPCS the "Caring Company Logo" for the third consecutive year, in
recognition of our demonstration of corporate citizenship.

Over the past year, CPCS has taken many initiatives to take part in various
social and community services, with the aim of instilling a sense of a caring                      1
spirit and social responsibility amongst our staff, while at the same time showing
our love and care for the needy. Activities have included "Elderly Day 2005",
"Dress Casual Day", "UNICEF - Field Trip to South Africa" and "Food Bank",
and all these activities received overwhelming support from CPCS staff.

CPCS will continue to act as a responsible corporate citizen, establishing new
ties and strengthening old ones within the community within which we work.

  1 Chief Executive of HKSAR, Donald Tsang, gives an opening speech at the ceremony
  2 Kuby Hong (second from left) pictured with Rebecca Wong (left), Regional Director of Hong
    Kong Sheng Kung Hui Welfare Council, Crystal Cheng (second from right), District Director of
    Hong Kong Sheng Kung Hui Welfare Council and Perick Wong (right), Employment Service
    Manager of Hong Kong Sheng Kung Hui Tung Chung Integrated Services

                                                                          Care and Share …
                                                                          Food Bank Donation

                                                                          Christmas is a time of joy and fun, as well as a season of giving and
                                                                          caring. In our community there are still a great many people suffering
                                                                          from a lack of the basic need of life - FOOD. To express our love and
                                                                          care for the needy during this festive season, CPCS took part in the
                                                                          food drive jointly organized by Swire and St. James Settlement.

                                                                          From 12th December 2005 to 6th January 2006, a "Peoples' Food
                                                                          Bank Collection Box" was placed at the security counter of our
                                                                          premises to encourage donations of canned food, instant noodles,
                                                                          packaged biscuits, and other non-perishable food from our staff.

                                                                          During the collection period, CPCS staff showed their support by
                                                                          donating different varieties of food items to the collection box. These
                                                                          little gifts not only relieved the hunger of the needy, but also, as
                                                                          importantly, expressed our love and care.

                     A donation box brimming with love and care

Superior Chinese Cuisine …
"Best Chinese Food in the Air" 2006
    To commemorate Cathay Pacific Airways' 60th
    anniversary this year, CPCS worked hand in hand with
    seven of Hong Kong's fine Chinese restaurants in CX's
    biggest ever promotion to serve the "Best Chinese Food
    in the Air", which commenced on 1st March 2006. "Its
    success represents the partnerships and hard work of
    chefs from CPCS and seven other restaurants," said
    Phillip Kwan, Chinese Cuisine Consultant for CPCS who
    is in charge of all Chinese Cuisine development and
    improvement. Phillip continued, "It was a truly unique
    learning experience…the exchange of ideas and the
    sharing of techniques among chefs was inspirational
    and fundamental to developing new dishes suitable
    for in-flight service. We've learnt a great deal through
    seeing the hands-on instructions in preparing and
                                                                             CX crews proudly present some of the signature dishes
    cooking the 100 dishes by their top chefs."

                                                                               In previous promotions, CPCS usually collaborated only with one
                                                                               restaurant group. This year, however, a total of seven renowned
                                                                               restaurants took part in this event, namely Celestial Court Chinese
                                                                               Restaurant; Sheraton Hong Kong Hotel & Towers; Jade Garden
                                                                               Chinese Restaurant; One Harbour Road, Grand Hyatt Hong Kong;
                                                                               Peking Garden Restaurant; T'ang Court; Langham Hotel Hong
                                                                               Kong; and Yung Kee Restaurant. Phillip said that the preparation
                                                                               actually began in October last year. CPCS' chefs tasted and tested
                                                                               more than 160 dishes proposed by the seven restaurants and
                                                                               CPCS. Based on a number of criteria and constraints, 100 dishes
                                                                               which would work best onboard were selected.

            Chef Paul (left) ensures the original recipes taste as good in
                                       the air as they do on the ground

    "We have made a number of modifications, for
    example, to deep fried items, to ensure the original
    recipes taste as good in the air as they do on the
    ground," said Paul Wun, sous chef in charge of the
    daily operations and cooking of the dishes. "It is our
    goal to offer the very best mouth-watering dishes to
    our passengers, even up at thirty thousand feet high,"
    both Phillip and Paul stated. These unique dishes are
    available to passengers on all Cathay Pacific flights
    departing Hong Kong from 1st March through 31st
    December 2006.                                                           Quince Chong (middle), Director Service Delivery of Cathay Pacific Airways,
                                                                             along with the chefs and representatives from seven restaurants, officiate
6                                                                            the launch of "Best Chinese Food in the Air" promotion
                                                               Media Interview Highlights
                                                               Longest Serving Staff of CPCS
                                                               In celebration of Cathay Pacific Airways 60th anniversary, a media visit
                                                               was specially organized on 23rd February 2006 to offer our local media
                                                               an invaluable opportunity to explore how in-flight meals are prepared
                                                               behind the scenes.

                                                               More than 30 reporters and photographers from around 20 media
                                                               organizations took part in this event. The media group was first welcomed
 From left: Lee Ho Yuen, Alex Chau, Jackson Ng and Wong Kwan
                                                               by our Chief Executive Officer, Mr Alex Chau, followed by a brief
                                                               introduction of our company by the Marketing and Customer Services
                                                               Manager, Ms Joanne Cheung.

The introductions were followed by a kitchen
tour to give the reporters a chance to understand
our daily operations. Besides the tour, another
highlight of the day was the interview with our
CEO and three long serving staff members,
including Executive Sous Chef Mr Wong Kwan,
Airline Account Manager Mr Jackson Ng, and
Chef de Partie Mr Lee Ho Yuen. Each of them
shared lots of their memorable experiences as
well as many unique and interesting stories.

                                                               Interview with our CEO and three long serving staff

                                                               "I had a chance to serve a variety of VIP flights because of my job here
                                                               at CPCS. I even served the US Air Force No. 1 once!" smiled Jackson,
                                                               who has served at CPCS for more than 30 years. He added, "I remember
                                                               that the aircraft of the Prince of Saudi Arabia was laid out with suites,
                                                               and the floor was covered with 3-inch thick wool carpet. All cutlery sets
                                                               were made of gold, and we had to check everything very carefully to
                                                               ensure there was no loss."

                                                               "The quality and taste of the in-flight meals served today are far better
                                                               than those served in the past, thanks to the installation of steam ovens
                                                               onboard which help sustain food texture and maintain the original taste
                                                               of the food," shared Wong Kwan.

                                                               "CPCS always keeps a very close eye on the operation of the Kosher and
                                                               Halal kitchens, not just to avoid any violation of regulations, but also
                                                               because we regard this as a vital respect for the cultures and religions
                                                               of other countries. This is how we can maintain our long-standing
                                      News about us - CPCS!
                                                               business relationships with our airline customers," stated our CEO.
     Meritorious 2005 Long Service Awards for
     Dedicated Staff
                                                                                CPCS gave a tribute to 246 long-serving staff in
                                                                                appreciation of their dedicated and loyal service to the
         As a world-class caterer focusing on service excellence and
                                                                                company. The presentation ceremony was held at CPCS
         quality, we require team players committed to quality
                                                                                on 16th November 2005.
         management. We launched our first Quality Day for all our
         senior management on 8th April 2005 at the Clear Water
                                                                                At the service, Mr Tony Tyler, Chief Operating Officer of
         Bay Golf & Country Club. The Day was indeed a continuation
                                                                                Cathay Pacific, Mr Alex Chau, Chief Executive Officer of
         of the Service Culture Campaign. The primary goal of the
                                                                                CPCS, and Mr Angus Barclay, General Manager of CPCS
         Day was to align quality measures within CPCS and act as a
                          Group picture taken with all 10 & 15 years awardees   (HK) Ltd., presented the Long Service Awards to staff who
         great tool to link up with each other.
                                                                                have served CPCS for an extended period of time of 10
                                                                                years, and thereafter in multiples of five years.

    Among those receiving awards, more than 167 colleagues received the award
    in person. Mr Leung Yiu Wing, a staff from the Operations Department, has
    rendered an incredible 40 years of dedicated service to CPCS, and honourably
    received the award from Mr Tony Tyler.

    Four were awarded for their 30 or more years of dedicated service. Awards
    signifying 20 to 25 years of service were presented to 33 staff. 120 staff received
    awards for their 15 years of service, while another group of 89 staff received
    awards which marked their 10 years of service.

    At the presentation ceremony, Mr Angus Barclay congratulated all recipients
    and thanked them for their many years of loyalty and dedication to CPCS.                    Tony Tyler (right), Chief Operating Officer of Cathay
                                                                                                Pacific, was proud to present the 40 year long service
                                                                                                award to Leung Yiu Wing (left)
    After the presentation ceremony, a celebration dinner was arranged for the
    awardees who have served CPCS for 20 years and above. Our management
    team shared the unforgettable moment with them.                                            Congratulations to all dedicated staff of 20 to
                                                                                               40 years of service

                                                                       Home Sweet Home . . .
                                                                       CPCS Gingerbread House

                                                                       The Christmas Cocktail was successfully held at CPCS on 2nd December 2005.
                                                                       Our airline customers, airport community members, suppliers and directors
                                                                       were invited to jointly celebrate the Christmas season with us.
                     xxxxxxx xxxx xxxx xxxx xxxxx
                  1 Welcome to CPCS Gingerbread House!

2 From left: Angus Barclay, Clara Ma, Dora Kay, Head of
   International Marketing, Airport Authority, Hans Bakker,
   Commercial Director, Airport Authority and Quince Chong,
   CPCS Chairman


                                                                       For the first time ever, our Meal Presentation Room was turned into a fantastic
                                                                       Gingerbread House, complete with fabulous settings and colourful decorations.
                                                                       Once our guests entered the venue, they were surprised to discover the authentic
                                                               3       gingerbread roof and walls, the chocolate Christmas tree, the fireplace and,
3 Angus Barclay (left), Clara Ma (second from left) and Alex           of course, the appealing food and drinks. We were honoured to have our CPCS
  Chau (right) are welcoming friends from Cathay Pacific,
                                                                       Chairman, Ms Quince Chong, give an opening speech and welcome everyone.
  Beatrice Yim (middle), Manager Purchasing and Peter
  Langslow (second from right), GM In-flight Services
                                                                       All at the party enjoyed the warm and christmassy atmosphere very much. The
                                                                       success of the cocktail party reflects CPCS staff professionalism and creativity.
                                          xxxxxxx xxxx xxxx xxxx xxxxx
                                       4 Well done, CPCS!


                                                         Four New Customers are in Town

                                                         Qatar Airways
                                                         Qatar Airways (QR), which was launched in 1994, is the national carrier of
                                                         the State of Qatar. Currently, it has a fleet of 44 aircraft flying to 70
                                                         international destinations across the Middle East, Europe, Africa, the Indian
                                                         sub-continent and Asia.

                                                         To develop a close tie with Greater China, Qatar Airways commenced its
                                                         Hong Kong - Doha route in late March 2006. CPCS was very pleased to
                                                         become the air caterer to provide catering services to this new airline
                                                         customer. The first flight from Doha to Hong Kong was met by General
                                                         Manager Mr Angus Barclay when it touched down at the airport on 26th
                                                         March 2006. To express our best wishes for their success, our representatives
                                                         presented the inaugural flight crew with a fruit basket and chocolates.
                                                         Currently, CPCS uploads Halal meals to seven weekly flights departing from
                                                         Hong Kong to Doha, the capital of the State of Qatar.

                                                        1 Angus Barclay was pleased to meet Bernard Brévot, Senior Manager In-flight Product of QR at its
                                                          ribbon- and cake-cutting ceremony on 26th of March
                                                        2 Group picture taken at QR's inaugural flight

     Royal Brunei Airlines
     Royal Brunei Airlines (BI) was established in 1974. It currently
     provides scheduled services to 21 destinations across Asia, the Middle
     East, Australasia and Europe.

     Starting in March 2006, CPCS has begun to uplift Halal meals to all
     of BI's five weekly flights departing from Hong Kong to Brunei.
     On the day of the inaugural flight, representatives from CPCS,
     including Mr So Gap Tim, the Operations Manager; Ms Joanne
     Cheung, the Marketing and Customer Services Manager; Mr Stanley
     Siu, the Airline Account Manager; and Mr Raymond Tse, the Culinary
     Consultant, presented the crew with a fruit basket to celebrate the
     establishment of our business partnership.

                                                                                          3 Ronald Shum (right), Station Manager of BI, and staff extend warm
                                                                                            welcome to all CPCS representatives
                                                                                          4 CPCS hi-loader gets ready to uplift all catering items for Royal
                                                                                            Brunei Airlines


Air China
Air China (CA) is a mainland-based airline first founded in 1988.
It is the only airline that flies China's national flag on every aircraft
and provides special aircraft for state leaders.

Currently, CA operates seven passenger flights between Hong
Kong and Beijing, and one flight between Hong Kong and each                            6

of Dalian, Hangzhou and Tianjin daily. Starting from 1st November                          5 Air China - the only airline that flies China's national

2005, CPCS has started uplifting meals for two of its daily flights                          flag on every aircraft
                                                                                           6 CA crew were delighted to receive a cake from CPCS
to Beijing.
                                                                                             celebrating its inaugural flight

                                                                                               Siem Reap Airways
                                                                                               Siem Reap Airways (FT), which is based in Siem
                                                                                               Reap, Cambodia, is a sister company of Bangkok
                                                                                               Airways (PG). It currently operates five flights
                                                                                               between Hong Kong and Siem Reap weekly.
                                                                                               Starting from November 2005, CPCS has provided
                                                                                               catering services to the flights departing from
                                                                                               Hong Kong to Siem Reap every Monday,
                                                                                               Wednesday, Friday, Saturday and Sunday.

                               7 No one could miss such a colourful FT aircraft!



                                                                                            8 CPCS provides catering services to FT every Monday, Wednesday,
                                                                                               Friday, Saturday and Sunday

      Life Changing Trip to South Africa

     "The greatest blessing may come from our ability to help those
     who are less fortunate . . .," said Gary Cheung, Airline Account
     Manager. Two of our colleagues, KK Leung and Gary Cheung,
     were fortunate and grateful to be able to join a field trip to
     South Africa in recognition of their community work during
     the year, along with 26 Cathay Pacific Airways' staff, from 17th
     to 23rd October 2005. Their destination was KwaZulu-Natal,
     where they spent a week visiting local fieldwork in the areas
     of early childhood development, girls' education and HIV/AIDS
     prevention that UNICEF is working on.

                           A young girl from KwaZulu-Natal was more than grateful to
                                                  receive a certificate from KK Leung

     This was the second year for UNICEF and Cathay Pacific to organize a staff field trip in appreciation of their support to the
     "Change For Good" in-flight fundraising programme. They spent several days on preparing presentations and games to
     introduce various aspects of Hong Kong to the people of KwaZulu-Natal. Throughout the trip, the visitors' hearts were
     touched by the hope, the joy and the contentment these children and young people exhibited regardless of the dire situations
     they find themselves in. KK and Gary have gained deeper convictions about helping those in need. Anyone could be a hero
     to these children, and any change however small can affect the lives of many who are fighting to survive.

                                                                             1 Gary's heart was totally drawn to all these adorable children

                                                                             2 Group picture taken at one of the KwaZulu-Natal early childhood development centers


                                                                                 Creative Recipes Shine at
                                                                                 the California Strawberry
                                                                                 Cooking Contest

                                                                                 "In the past, people only thought of strawberries as delicate,
                                                                                 delicious fresh berries, and then later people sought ways to
                                                                                 transform them into fresh or frozen desserts, cakes, mousse and
                                                                                 many other forms of after dinner delights. We wanted to
                                                                                 challenge ourselves, to create our own recipe to see how
                                                                                 strawberries can go beyond being garnishes for salads," said
                                                                                 Bobby Shum, our Production Training and Development Manager.

Mak Kwok Chi, Junior Sous Chef, shines at the California Strawberry Cooking Contest

                                                                                            Mak gives his full attention to the "creation" of his own recipe

    Bobby led a team of trainee cooks along with two junior sous chefs,
    to take the challenge and enter the Strawberry Cooking Contest
    held at the VTC Hospitality Industry Training and Development
    Center on 17th June 2005. It was organized by the California
    Strawberry Commission. Four of our participants, including two
    trainee cooks and two junior sous chefs, were required to create
    a recipe using California strawberries as the main ingredient within
    the designated food of the group such as seafood. The entries
    were judged based on the creative use of strawberries, the taste
    and appearance, cooking techniques, time of preparation, as well
    as the hygienic conditions used. With the full support from our
    team, Mak Kwok Chi, Junior Sous Chef, was able to make it through
    to the final of the competition.

                                                                                                "The good thing about this competition was that
                                                                                                our trainee cooks actually experienced strawberries
                                                                                                being prepared as hot or cold sauces, in desserts,
                                                                                                in hot and cold appetizers, as well as seeing a demo
                                                                                                in Chinese and Western cooking," said Bobby.

                                                                                             Mak's dish which enables him to make it through to
                                                                                             the final of the competition

     Up Close and Personal with New Marketing and
     Customer Services Manager

                                                                    We are happy to announce that Joanne Cheung has been appointed
                                                                    Marketing and Customer Services Manager effective from 16th
                                                                    January 2006.

                                                                    Joanne has extensive experience in the catering industry. She
                                                                    received her professional training and education in Hotel and
                                                                    Catering Management at the Hong Kong Polytechnic. Shortly
                                                                    after her graduation, she worked in the sales and marketing field
                                                                    at several renowned hotels such as the Grand Hyatt Hotel, Ramada
                                                                    Renaissance and the Holiday Inn Harbour View Hotel. Subsequently,
                                                                    she took up the position of Customer Services Manager for the
                                                                    Mario Chain Restaurant, a subsidiary of Fairwood Holdings Limited.

                                                                   Welcome on board, Joanne Cheung

     In 1998, Joanne joined Gate Gourmet Hong Kong
     (GGHK). She spent the next 7 years exploring in-
     flight catering by engaging in various aspects of
     the industry including sales and marketing, tenders
     and contracts, purchasing and customer services.

     Taking up the role of Marketing and Customer
     Services Manager, Joanne will lead her team to
     ensure successful delivery of excellent customer
     service, maintaining and building up even closer
                                                               From left: Johnnie Mak, KK Leung, Gary Cheung, Joanne Cheung, Stanley Siu,
     business relationships with our airline customers         Pat Cheung, Ricky Wong

     and establishing a unique corporate image for

     "I feel excited about taking up the new position at CPCS. CPCS is an in-flight caterer of great distinction and I am delighted
     to join this family," said Joanne. "I am prepared to meet any new challenges here and look forward to working closely with
     my colleagues to help CPCS scale new heights in the years to come."

     Joanne is married with a daughter. She is currently pursuing an MBA in International Marketing. "In an ever-changing business
     environment, I do believe that further study is a fulfilling and beneficial experience for me and would enhance my career
     development." To achieve a better work-life balance, getting in touch with nature is Joanne’s solution. Hiking is her favourite
     pursuit, "I hike as often as I could, this sport teaches me discernment in life and awards me with a peaceful mindset," she added.

                                                                   New Chinese Cuisine
                                                                   Consultant Brings Culinary
                                                                   Inspiration to CPCS

                                                                   We welcome Chef Phillip Kwan to our team with open arms and
                                                                   great excitement. Phillip has extensive experience in Chinese cuisine,
                                                                   specializing in Cantonese, Szechuan, Beijing and Shanghai cuisines.
                                                                   He began his culinary trail in Singapore in 1975 where he fell in love
                                                                   with Cantonese cuisine. In 1990, equipped with the expertise in both
                                                                   Chinese and South-East Asian Cuisine, Phillip went to Cape Town,
                                                                   South Africa, to further his culinary arts with one of its finest
                                                                   establishments, Neethlinghof wine estate in Stellenbosch. He was
                                                                   Chinese Cuisine Executive Chef for 7 years managing the much
                                                                   renowned Chinese restaurant. Most recently, Phillip was the Executive
                                                                   Chef of Hainan Mandarin Hotel before joining CPCS.
       Phillip has much excitement to share his knowledge
                                   with everyone at CPCS

No stranger to culinary competitions, Phillip has participated individually in many
competitions; he received a gold award from Les Amis d'Escofier Society and was
awarded Top Ten Famous Chef in Hainan. He was also certified as a Registered
Executive Chef by the International Hotel & Restaurant Association. Phillip has
cooked for Mr Lee Kwan Yew and Mr Goh Chok Tong, former Prime Ministers
of Singapore and Mr Ong Teng Cheong, former President of Singapore.

Taking on the mantle of the Chinese Cuisine Consultant who is in charge of all
Chinese Cuisine development and improvement at CPCS, Chef Kwan enthuses,
"I look forward to the challenge in the kitchen operations where I will have to
ensure a seamless workflow and enhance the quality of Chinese cuisine served
to all passengers flying from Hong Kong around the world." His twenty-eight
years of culinary experience will certainly make a difference in enriching the
gastronomic experience of in-flight dining.

                                                      Chef Phillip is passionate about Chinese cuisine of
                                                               which Cantonese is one of his favourites

                                                          Cebu Pacific Catering Services
                                                          During the last quarter of 2005, Cebu Pacific Catering Services, Inc. have been
                                                          busy implementing and putting into practice the objectives and goals towards
                                                          GMP (Good Manufacturing Practice) and HACCP (Hazard Analysis and Critical
                                                          Control Point) Accreditation.

                                                          The hard work of the project team, as well as the whole CPCS-Cebu Family
                                                          working hand in hand, paid off when the National Bureau of Quarantine (a
                                                          government body responsible for regulating food manufacturers and handlers
                                                          via air and sea) in Manila announced the passing of the Audit right after the
               CPCS-Cebu HACCP Team have dedicated        review. With the passing rate pegged at 81%, we were delighted to get a score
           themselves to providing the highest hygiene    of 84%. This achievement signifies our concerted effort and dedication in
                      standards for all their customers   providing the highest hygiene standards for our customers.

     CLS Catering Services Vancouver
     CLS Vancouver has actively been pursuing additional contracts both inside and
     outside the airline industry. We are pleased to announce that Vancouver will be
     launching the new Starbucks Lunch Programme during April 2006. This will complement
     the Starbucks business currently handled by the Toronto kitchen. As a result, our
     facility is expanding to accommodate additional freezer and cooler space.
                                                                                                 Group picture taken at the award ceremony: (From left)
     Throughout the past few months we have continued to work with our customer                  Mukesh Tugnait, Executive Chef, Peter Ho, Catering
     base to ensure that quality of presentation and product is maintained. We were              Manager CX, Martin Mahovlich, GM CLS YVR, Mr Choi,
     thrilled to receive the "Best Caterer Award for 2005" from Korean Airlines. Most            KE Station Manager, Suneel Reddy, Operations Manager
     recently, the local Korean TV crews visited our facility to document the food production    of CLS YVR and Yuni Favrholdt, KE Catering Manager
     process and feature the fine cuisine enjoyed on our flights. This programme was
     viewed locally and featured throughout the Asian region.

     Our kitchen also recently had the privilege of catering for several VIP flights. The first was the Prime Minister of Vietnam in
     February, from which we received very positive feedback. Then in March, we catered a flight for the Japanese Royalty, which
     also was well received with positive feedback.

     The complimentary comments received from both of these VIP flights reflect highly on our dedication to customer service
     and product quality.

     CLS Catering Services Toronto
     Rick Bushell, General Manager of CLS Catering Services Toronto, is pleased to report news of their existing customers. This
     news signifies their new growth in overall meal production.

     Pakistan International Airlines has commenced using the first B777-200LR delivered in the world by Boeing on their Toronto to
     Karachi route. The new non-stop flights are 14.5 hours in length and replace the one-stop service previously operated by the
     B777-200ERs. Food service requirements increased from one meal on the one stop service to three meals on the non-stop service.

     Air India will double its flight frequency from three to six times weekly on their Toronto to Amritsar route in May this year.

     Their newest customer, Sunwing Airlines, commenced operations last fall with two leased 737-800s. They will take delivery of
     their very first new aircraft direct from Boeing in May, also a 737-800.

     Additionally, CLS Toronto will celebrate one year of service to Starbucks in Ontario this month. To date CLS has produced over
     800,000 sandwiches and salad meals for Starbucks, and they will commence using CLS in Vancouver to produce their lunch
     program meals as well, commencing in April of this year.

     Lufthansa has brought back the 747-400 aircraft to the Toronto route. The reinstatement of the 744 also means the return of
     first class service requirements to this route, which had been operating with two class configuration A340-300s until the end
     of March this year.

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