Embracing Change Airline service reaches new heights by Mary Luk For a company with more than 15,000 employees working around the world, outstanding service depends on great teamwork and communication Regional and world events will inevitably have a major impact on the aviation industry, and the last few years have brought an unprecedented assortment of problems. The most recent in a series which has included economic crises, terrorist attacks and SARS are the rising price of jet fuel and the possible spread of avian flu. However, dealing with these, like everything that has gone before, is seen by Cathay Pacific Airways as another challenge to which their staff must respond and which the company will strive to overcome. We advocate more communication between colleagues and expect everyone to work as a team Despite the setbacks affecting the industry, Cathay's annual turnover grew from $26.6 billion in 1998 to 39.1 billion in 2004, an impressive rise of 47 per cent. In the same period, the number of passengers carried jumped from just over 10 million to 13.66 million. The volume of cargo carried rose by 68 per cent with some 972, 000 tonnes recorded in 2004. At the same time, Cathay's fleet of aircraft has grown substantially and is set to exceed 100 by next year. It is not surprising, therefore, that Cathay was voted Airline of the Year for 2005 in the world's largest passenger poll organised by Skytrax. According to Quince Chong, director of service delivery, one of the secrets of success lies in the airline's corporate philosophy of providing "service straight from the heart" and striving for continuous improvement. "We have to deliver the best service and meet changing needs to ensure passengers enjoy a seamless journey," she says. Wider choice One example of the changes made is the use of the Internet to offer an online pre-ordering service for duty free items. This covers almost 200 products ranging from jewellery to cosmetics and electronic gadgets, which can now be ordered in advance and collected on board. This has greatly extended the available selection and includes far more than the previous offer of cigarettes, wine and perfumes. Also, ever since personal TVs were introduced to first-class passengers on long-haul flights in 1991, in-flight entertainment and video systems have been constantly upgraded. There are now over 20 channels of entertainment, offering a far greater choice, plus more functions and a range of language options. Ms Chong points out that there is also a new approach to training staff. "Employees are expected to be proactive and take their career in their own hands," she says. "Nowadays, we advocate more communication between colleagues and expect everyone to work as a team to ensure quality services are always delivered." She explains that, with 18 cabin crew working on a full Boeing 747 of 380 passengers, good service depends on excellent teamwork. Communication is also vital between in-flight and ground service. Another important aspect of excellent service is going beyond the norm. For instance, when one recent Cathay flight was delayed late at night, the ground staff at the airport voluntarily withdrew money from their own bank accounts via the airport's ATMs to make up for the short of Hong Kong currencies needed for service recovery. Generating ideas The company's management realises the importance of constant communication with staff and has created a corporate suggestion scheme called Isuggest to collect feedback and suggestions for improvement. Amongst cabin crew, a consultation group was set up in 2001 and coordinated ideas on how best to enhance service standards and the overall business. This includes new measures proposed by peers. Recently, as a way of saving weight, which then saves fuel and costs, some Cathay staff have suggested that cargo aircraft should not be painted - something which the management seriously considered "These activities are to create an environment of innovation and to stimulate the brainstorming of ideas," Ms Chong says. Since so many of Cathay's front line staff, including 6,500 cabin crew, are "mobile", they have no desk and, previously, would receive company news and documents either in face-to-face briefings or placed in their personal mailboxes. More recently, such communication is handled via the airline's intranet system, allowing instant access to the latest company information and announcements. "This makes it possible for relevant staff to receive messages much faster. The intranet has brought us closer together and changed our culture from 'push' to 'pull' in terms of supplying and getting information," she explains. Ms Chong admits that there are always business risks in the airline industry, since many things are beyond management's control. For instance, fuel used to account for only 19 per cent of the airline's operating costs but this has now shot up to 30 per cent with the change in world oil prices. "There's not much we can do apart from finding ways to lower operating cost and improve productivity," she says. That, like putting contingency measures in place to cope with a possible outbreak of avian flu, is just another sign of Cathay's ability to anticipate change and plan for it accordingly. Quince Chong is director of Service Delivery, Cathay Pacific Airways, and chairman of Cathay Pacific Catering Services HK Ltd, Vogue Laundry Service Ltd and Hong Kong Airport Services Ltd. Before joining Cathay Pacific, she held public relations positions at the Hong Kong Tourist Association and various hotels. She has also been a member of the Council of the Open University of Hong Kong since 2004 and a member of the Hong Kong Association of Business and Professional Women. She will speak at the Business Excellence Symposium on 2 December, 2005 at Hong Kong Disneyland Resort. Then and now Before One in-flight movie available for all passengers Limited duty-free items for sale on board Staff training based only on learning set procedures Company information delivered in face-to-face briefings After Personal TV featuring variety of programmes for individual choice Close to 200 items available for online order and pick-up on board Training programmes encourage all employees to be proactive Intranet system used to keep cabin crew fully up to date Taken from Career Times 11 November 2005 Your comments are welcome at [email protected]