A Newsletter for partners and friends of CPCS

Issue 033•2013DEC

CATHAY PACIFIC CATERING SERVICES (H.K.) LTD11 Catering Road East, Hong Kong International Airport, Lantau, Hong KongTelephone: (852) 2116 2288 Fax: (852) 2765 7355 Website: www.cpcs.com.hk Sita: HKGHMCX

We welcome your comments on our newsletter. Please contact Janet Kwan at Telephone: (852) 2116 2013 Fax: (852) 2765 7355 Email: janet.kwan@cpcs.com.hk

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CEO Message

News and Event

Expansion Project – Phase 1

Green Enterprise Awards 2013

CPCS Lean Management

Customer Focus

Partners for Excellence – 40th Anniversary Partnership with MH & Contract Renewal Signing Ceremony

New Customer - EY Cargo

EK Media Event

CX Media Event

Sustainable Development

Our People

Commercial Manager – Mr. Philip Tung

40-year Long Service – Mr. So Sing Chi

News from Sister Kitchens

CPCS/TPE - 2012 Outstanding Caterer Award & New Airline Customer

CPCS/CEBU - Best Hygiene Award & 17th Anniversary

CLS - New Capital Investment

Issue 033 - 2013DEC

I am pleased to share with you that CPCS has successfully crossed a number of key milestones in 2013 that are critical to achieving our company’s vision and mission. This is not possible without the support of our business partners and the contribution of our employees. For the first three quarters of 2013, Hong Kong International Airport handled 44.8M passengers; representing year-on-year growth of 6%. It is encouraging to see the continuous growth of passengers coming through Hong Kong. CPCS also made two records in 2013; the highest number of flight handled on 29 December of 205 flights, the highest average daily meal production of 76,056 meals in July 2013. The making

of these records was not without challenge given our current capacity constraints. CPCS Operational Team performed great teamwork to achieve the excellent result.

All the construction and installation work of our Phase 1 expansion has been completed by end of October. The daily production capacity of CPCS will expand from 80,000 to 100,000 meals. The project team is conducting detailed testing of the new ware washing lines and Power & Free System enhancement to integrate the equipment movement. Full operation is targeted in November 2013. Our goal is to further enhance our operation efficiency and quality.

We could finally put a tick in the Hong Kong Aircraft Catering Franchise Extension box. The agreement was finalized in July and it safeguards CPCS’ commitment to the long term development of the Hong Kong International Airport and the high quality aircraft catering services. Such commitment included the completion of our Phase 2 expansion in 2016 that will increase our throughput capacity to at least 140,000 meals and 300 flights per day. The project team that comprises CPCS operation team and external consultants is fully engaged in the detail design of the new facility. The existing facility will also undergo alteration works to ensure the operation in two facilities will integrate seamlessly. We must not forget that labour, rent and energy costs are three largest cost components after raw material and they are rising at above CPI level. Our goal for the future is Lean and Green.

On the commercial front, we are working relentlessly on improving our material management and product offering to combat against rising raw material prices. We believe that the aviation industry will continue to operate in tough environment. It is crucial for us to work as close partnership in order to achieve win-win solution.

Whilst we are coming to the close of 2013, I take this opportunity to express the most sincere thanks to you for your continued support in the past and for the future. I wish you and your families a happy X’mas and a successful 2014.

Mrs. Jenny Lam, CEO, CPCS

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CEO Message

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News and Event

Phase 1 completion

• Ware Wash •The new ware wash is located on the 1/F, directly above the G/F Interline washing area. The newest ware wash machines from Hobart have been installed. These ware wash machines are primarily designed for handling CX Economy Class equipment. There are 2 sets of tray set washer, 1 bulk washer and 1 cart washer. The tray set washers are designed to run at 25 trays per minute which are 25% faster than the existing ones.

CPCS Expansion Project Phase 1 has been completed by the end of October. After the completion, the facility capacity is now increased from 80,000 to 100,000 meals a day. Besides capacity expansion, there are improvements in various areas to improve operational resilience and staff well beings. The Project Team sincerely thanks for the supports from the staff who have made this project happen and execute smoothly.

The key works for the Phase 1 Expansion are:

Expansion Project – Phase 1

Tray set washers

Cart Washer

The ware wash is designed with its own temporary storage buffers of meal carts and equipment bins that can work independently with the Power & Free System connecting the rest of the facility. That will provide a better resilience to our ware wash operations.

Equipment bins storage buffer

Meal Carts storage buffer

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News and Event

• Glass Canopy • A glass canopy has been installed to protect all warehouse receiving bays and make them more efficient under all weather. The canopy also offers better protection to personnel and to goods during the unloading process.

• Staff Facilities •The main changing rooms were re-configured to improve quality and capacity. The most obvious change is that the size of the female main changing room was expanded to address the issue of gradual shifts staff gender mix. By balancing the size of the main changing rooms, additional lockers can be installed gradually to cope with the growth in staff population.

• Infrastructure •Other than these visible improvements, there are some enhancements made to the facility infrastructure to improve the overall operation efficiency. For example, a new boiler has been installed on the roof. With a total of 3 boilers, we will be less affected by the decrease supplies in steam and hot water during statutory boiler maintenance periods. Similarly, we also added 2 new grease traps, making a total of 3 now, to confine ware wash stoppage to small group of machines during grease trap cleaning.

All these improvements are to expand operational capacity, to support a more resilient operation and to reinforce our commitments to hygiene and safety.

Glass Canopy at Warehouse Receiving Bay

• Cold Hold •The new cold hold on the 2/F is located between dishing and tray setting areas. The new 150m2 cold hold offers better flexibility on scheduling and better assurance on cold soaking time. Both factors are crucial to our service level and hygiene commitments.

New cold hold in Production Department

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News and Event

It is our honor to be selected as one of the winners for the “GREEN ENTERPRISE AWARDS” in the catering category. The award was launched and presented by CAPITAL Entrepreneur to recognize enterprises that have been contributing to the development of environmental protection, and to honor corporations who over the years have undertaken this social responsibility as one of their core corporate commitments. This award also compliments forward-thinking companies who strive profitably in the green industry.

“Lean” is an operation practice that understands value from the viewpoint of the customer and eliminates waste or non-value-added activities, in which “value” is defined as any action or process that a customer would be willing to pay for.

Green Enterprise Awards 2013

Lean Management

Lean Management coaching and learning

In pursuit of the beneficial results of applying a lean concept to our business, the company commissioned an experienced consultant to deliver a Lean Leader Training programme, supplemented with coaching sessions. Ten lean projects were shortlisted for implementation.

The Pricing and Contracts Department proposed a lean project with the ultimate goal to streamline the photo taking process during the meal presentation. The department subjected each business process and procedure to systematic scrutiny, and identified non-value-added process, i.e. dish ID labeling. Concerning extraordinary time spent in photo taking, the department abandoned the time-consuming labeling process. The department is mapping out an array of solutions making good use of technology and other critical resources. We are pleased that the project deliverables are likely to happen shortly and we are one step closer to the lean process.

Colleagues’ learning and presentation

Trophy of Green Enterprise Awards 2013

2013 was a milestone of the partnership between Malaysia Airlines and CPCS. It was also a memorable date to recognize our efforts to Malaysia Airlines in the past 40 years.

In 1973, CPCS was appointed by Malaysia Airlines as the catering service provider in Hong Kong for 2 daily flights only. With the best service quality and rapid expansion of Malaysia Airlines over these 40 years, CPCS now share her fruitful results in Hong Kong with 4 daily flights.

2013 is another fruitful year for Malaysia Airlines. Malaysia Airlines joined One World in February and launched A380 aircraft out of Hong Kong in May. CPCS has supported Malaysia Airlines in celebrating these events by offering featured desserts to her valuable passengers and crew members.

“We would like to express our heartfelt gratitude for the supports from everyone in Malaysia Airlines over the past 40 years. The sustainability of our partnership is now materialized by renewing our catering agreement for the coming years. CPCS has confidence to continuously provide our seamless and total customer service to Malaysia Airlines for the years to come,” said Mrs. Jenny Lam, Chief Executive Officer of CPCS.

On 30th October 2013, a contract renewal signing ceremony was held at the head office of Malaysia Airlines in Kuala Lumpur International Airport. Riding on the strong partnership with Malaysia Airlines and other customers, CPCS is committed being the most valued catering services partner in Asia, and focus on quality and creativity to supoort our customers to achieve their ultimate goals.

Partners for Excellence – MH 40th Anniversary & Contract Renewal Signing Ceremony

Customer Focus

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Signing Ceremony of Catering Agreement on 30th October 2013From left: Ms. Sharifah Julina Afaf Syed Jalaludin, Senior Vice President of Strategic Procurement of MH; Mrs. Jenny Lam, Chief Executive Officer of CPCS; Mr. Dato’ Mohd Salleh Ahmad Tabrani, Director of Customer Services of MH; Mr. Philip Tung, Commercial Manager of CPCS

Signing Ceremony of Catering Agreement

Commemorate crystal by MH celebrating the Catering Agreement and 40 years of partnership

Crystal to MH for celebration of 40 years partnership

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Customer Focus

EK Media Event - Media Gathering at Emirates HKIA Lounge

CX Media Event

New Customer - EY CargoEtihad Airways (EY), established in 2003, is the national airline of the United Arab Emirates and operates scheduled passenger and cargo flights to 87 destinations in 55 countries.

Starting from 1st July 2013, EY launched cargo services from Hong Kong to Anchorage, U.S.A.; Abu Dhabi, U.A.E.; Dhaka, Bangladesh and Lahore, Pakistan with Boeing 747 and 777 aircraft.

CPCS was appointed to provide full catering services for crew meals with effect from 22nd July 2013.

Emirates Airline organized a showcase on 3rd October 2013 at the Emirates HKIA Lounge to introduce her premium in-flight catering meals and services. Several groups of media including journalists and bloggers were invited to taste the food and beverages we provide for Emirates Airlines.

In order to ensure smooth operations, our Airline Account Manager, Mr. Kenneth Luk, visited the Emirates HKIA Lounge together with our Culinary Consultants and Pricing & Contracts Officer to support the whole event.

Our mission of “to be the most valued catering services partner in Asia; we focus on quality and creativity to support our customers in achieving their ultimate goals” is fully reflected through our assistance to the event. We will keep on working closely towards reaching a shared goal with Emirates to provide top quality products and services.

Enjoying deluxe dishes at 38,000 feet has gone from being a fantasy to a reality. 16 Chinese dishes designed by Michelin-starred restaurant Tang Court together with our Chinese Chefs were available on Cathay Pacific flights departing from HK during August to October 2013. With an increasing number of passengers from the mainland, number of gourmet Chinese dishes served on flights has been raised. Our Chinese Sous Chef, Mr Paul Wun, put a lot of efforts into sauces to ensure

meals are tasty and meat stays tender as passengers are looking for tasty gourmet meals instead of dishes just to fill people up. “We want to make sure the Chinese food we prepare is the best so as to attract more customers.” Paul said.

EY Cargo Aircraft

Group picture taken at Emirates HKIA Lounge on 3rd Oct 2013. Second from left: Mr Harold Ho, Airport Services Manager of EK; Mr Kenneth Luk, Airline Account Manager of CPCS; Mr Edwin Lau, Vice President – Hong Kong & Taiwan of EK; Mr Bernard Brévot, Regional Catering Manager of EK; Ms Crystal Ho, Pricing and Contracts Officer of CPCS; Mr Mark Shek, Sous Chef of CPCS; Mr Raymond Tse, Sous Chef of CPCS

Cooperation among CX, CPCS & Tang Court

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What is the future for sustainable airline meals?Despite the fact that its profile has raised more rapidly in the food industry in recent years, food sustainability remains a high challenge to airline catering. What is sustainable food? There is simply no straightforward answer. There may be much said about seafood, yet for other food categories, e.g. is there sustainable beef? What about sustainable vegetable? The search for a definition continues. To some people, sustainable food must come from well managed sources where depletion of both the food concerned and the resources used to produce such food is well under control. Thus the consumption of such food “meets the needs of the present without compromising the ability of future generations to meet their own needs.” (a landmark

Sustainable Development

1. Legal and Regulatory Compliance2. Child Labour3. Forced Labor 4.Employee Health and Safety5. The Environment6.Compenaion and Working Hours7. Discrimination and Employee Rights8. Subcontractors and other Service Providers9. Ethics10.Communication with staff

CPCS Supply Chain Sustainability Code of Conduct

CPCS

definition laid down by the United Nations’ Brundtland Commission in the 1980s) But to others, apart from the depletion of the food concerned, they also consider other factors. Is the production method in itself eco-friendly? Does the food meet the highest possible standards of health and safety for human being? Is the social consequence of the production of such food positive or negative to the prosperity of the local communities as well as the employees of the production facilities? What about animal welfare? Are the animals receiving the most humane treatment possible? The list could go on and on. We are hoping that there will be leading authorities or reputable organizations that will stand up, gather together the industry players, and lead the way

to establish commonly agreed “sustainable standards” for all to follow. Until then, food buyers, including the airline catering industry, on a day-to-day basis are faced with great difficulties to find the real sustainable food for their customers.

CPCS is keen to enrich its product offering to customers with sustainable foods. However, the supply market still needs time to develop enough sustainable foods with credibility (better with professional accreditation!). So, at this point in time, we think the best way we

can do to approach food sustainability is to start with selecting to work with only the “responsible” suppliers. CPCS has established a Supply Chain Sustainability Code of Conduct. In 10 key areas, we have set out our expectations of suppliers. These 10 areas represent our commitment to 3 global aspects: the People, the Planet and the Prosperity. By choosing to work with only those suppliers who share our commitment, we trust that we are ultimately purchasing responsibly produced products that will lead us to food sustainability.

Commercial Manager, Philip Tung

The Commercial Team

Commercial Manager – Mr. Philip TungPhilip joined CPCS in June 2012 as Commercial Manager. Before joining CPCS, Philip worked for the public relations, marketing and customer service sections in the logistics and transportation fields over the decade. He started his career as Management Trainee in a company of mid stream operation for ocean vessels, then followed by working in container terminal and local transport operators, such as domestic and cross border ferry operators and management of tunnel infrastructure. Philip finished his undergraduate in Managerial Statistics and completed postgraduate degree in Transport Policy and Planning and Business Administration.

“It was a great challenge for me to join CPCS, which is a totally different industry in my career path. Aviation catering industry in Hong Kong is currently facing many unforeseeable challenges, such as manpower resources, inflation, sustainability, quality assurance and keen competition in the market. As a new joiner to this industry and the company, I need to further equip myself with food science, especially the sophisticated requirement in aviation catering. However, I can share my solid experience in logistics fields to ensure everything can be delivered to our customers’ aircraft on schedule with a premium quality of service,” said Philip.

“When I first stepped in CPCS last year, I could only use one word to describe what I saw, “AMAZING”. It is incredible to have around 2,500 colleagues working together for about 70,000 sets of meals in more than hundreds menus every day. Everything is well planned and everybody fully understands their roles and responsibilities. My second word in my mind was “TEAMWORK”. I believe that CPCS is working as a fantastic team; colleagues work closely and have a well established communication channel to ensure every piece of our meal is safe and in a good quality.” Philip shared.

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Our People

“In these 18 months in CPCS, I gained plenty of experience, such as welcoming our new customers, Virgin Atlantic, Air Seychelles and Etihad Cargo. Through the startup program, I learned how our catering operations achieve a win-win situation for customers. To cope with the rapid changes of catering industry, we need to be more aggressive to take care of our customers and propose innovative and cost efficient measures to them in advance. Facing the high inflation in Hong Kong, it is difficult to take a balance on food costs and dish prices. However, our excellent team steps forward and try to understand our customers’ needs through smart procurement, effective cooking and handling measures and outstanding menu planning. I’m confident that this working practice can be maintained in the coming years to bring more benefits to our customers. ”

“I would like to share one more memorable issue with all of you. In June this year, I was very frustrated due to a number of hurdles internally and externally. One of our major customers invited me for a lunch during my leisure trip at his home town. He analyzed the situation in front of me and he said: “You had not lost anything; at least you have won friendships from your customers.” I treasure very much the friendship and trust I have won so far from my customers.”

“As a Commercial Manager, I oversee 4 departments: Customer Services, Deli Delight, Deli Fresh and Pricing & Contracts. I am working harmoniously with my three angels and one man.I enjoy spending my leisure time with my family and travelling. I am also a registered tour guide and tour escort. Therefore, if you would like to visit Hong Kong I’m pleased to be your tour guide and have fun together.”

Loyal Staff: Mr. So Sing ChiThe Long Service Award Presentation Ceremony 2013 was held on 27 November 2013 at CPCS Meal Presentation Room. It is our honor and gratitude to have 133 colleagues receiving the awards. Among all awardees, 111 of them have been growing with CPCS for more than 20 years; and 14 of them respectably received the 35-year Long Service Award. The most memorable moment of the evening is the presentation of the 40-year Long Service Award to Mr. SO SING CHI from the Operations Department.Mr. So joined CPCS on 17 Aug 1973. Working at CPCS is his very first job after the graduation. He has worked for Interlines at the Operations Department since the first day of work.

Most memorable job experienceCompleting a long-haul flight within 30 minutes was his most memorable and successful experience, an incident dated back to 30 years ago. He still clearly remembers the ETD of that flight was 18:30. However, he suddenly discovered that the aircraft type was changed just 30 minutes before ETD due to miscommunication. At that moment, all colleagues including the managers and front-line staff worked hand in hand together, re-packed all necessary equipment in 15 minutes and then delivered to the flight immediately. Fortunately, the flight successfully departed at 18:30. “It’s my pleasure to work in a company with great unity and the perseverance to strive for success. I feel strong sense of belonging and pride to work at CPCS.” said Mr. So.

Thankful words to the colleaguesMr. So would like to thank for the support and caring from all colleagues, especially his direct supervisors. He feels thankful to work at a company with high team spirit and this is the reason for his loyalty towards CPCS.

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Our People

CPCS TPE2012 Outstanding Caterer Award CPCS TPE started the provision of in-flight catering services to Hainan Airlines (HU) from 2006. HU is the first mainland China carrier uplifting meals out of Taipei. On 18 July 2013, HU held a catering workshop in Haiko, Hainan, China. CPCS TPE also attended the event and received the award of 2012 Outstanding Caterer.

New Airline Customer – Shanghai Airlines (FM)Shanghai Airlines becomes the thirtieth airline customer of CPCS TPE from 26 October 2013. Before the commencement of services on winter schedule 2013, Mr. Charles Peng paid a visit to Mr. Yan Zhang, General Manager of Cabin Service Department of FM in Shanghai on 21 October 2013, in appreciation of FM’s catering contract between TSA and SHA.

Third and fourth from the left: Mr. Charles Peng, General Manager, CPCS/TPE and Mr. Yang Zhang, General Manager, Cabin Service Dept., of FM.

Mr. So received the Long Service Award from Swire & CPCS

Mr. So was gave his thankful speech

News from Sister Kitchens

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News from Sister Kitchens

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CPCS CebuBest Hygiene AwardMr. Jose Antonio Garcia, the General Manager, accepted the BEST HYGIENE AWARD 2012 from Cathay Pacific Airways. An award presentation ceremony was held by the Macroasia Catering Services & Cathay Pacific Airways on 16 May 2013, at Solitare Resort and Casino, Manila.

CPCS Cebu - 17TH ANNIVERSARYCebu Pacific Catering Services, Inc. celebrated its 17th Founding Anniversary on 1st Oct 2013. A mass was held in the canteen in celebration and thanks giving for colleagues reaching 17 years of service in the company. And after which a simple dinner was served to all staff.

Awarding Ceremony at Manila

Best Hygiene Award Trophy

In October 2013, CLS took delivery of two new high-lift trucks as part of its capital investment program to replace its aging fleet and also a new generator to improve and enhance its catering services for its customers. The two new refrigerated high lift trucks will be used to replace trucks that were over fifteen years old. They will also provide better temperature control of airline meals during delivery.

CLS has also acquired a new generator that will provide back-up power to the entire catering facility which has suffered from power failures at least once per year in the past. The new generator will be able to cope with any power outages and prevent any interruption in the food production process. Both investments were much appreciated by the staff and will improve CLS ability to serve its customers.

CLS - New Capital Investments: CLS Vancouver

From Left: Catering Representatives Noel Prado, Victor Narayan and Segar Sithamparapillai with one of the new high-lift trucks purchased from Mallaghan truck builders