for

THOUGHTFOODIssue 19 • Dec 2006

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

In This Edition

CPCS 2006 Review 3

Management Movements . . . 4

New General Manager Onboard

CPCS Discovers and Cultivates 5

the Dreams of Staff

New Blood Invigorates the Marketing and 6

Customer Services Department

CPCS Reports a Record High Seven 7

New Customers

Celebrating 10-Years of Partnership with 9

EVA Air

"A Taste of Home" – Best Chinese Food 9

in the Air

Lending an Extra Hand Brings Hope to 10

Every Man

CPCS Ready for the A380 Super-jumbo 11

New Initiatives to Meet New Challenges –– 12

Flying to New Heights

New Thoughts on Meeting Planned Targets –– 12

Purchasing Workshops

CPCS Proud to Raise Future Leaders 13

CLS Catering Services Toronto 15

CLS Catering Services Vancouver 15

Cebu Pacific Catering Services 16

Vietnam Air Caterers 16

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

We welcome your comments on our newsletter. Please contact Ms Pat Cheung at�Telephone : (852) 2116 2012 Fax : (852) 2765 7355 E-mail : pat.cheung@cpcs.com.hk

3

CPCS 2006 Review

Alex Chau, CEO

Despite these difficult economic conditions, 2006 has been an encouraging

year for CPCS, with a number of notable achievements to celebrate:

• Average daily meal volumes uplifted by CPCS out of Hong Kong rose to

over 55,000, with a new record daily high achieved this year of 74,465. Group

contributions achieved similar success, for an overall average daily meal uplift

total of 110,000, an increase of 6%.

• 2006 also saw CPCS celebrate their tenth year of partnership with both

China Pacific Catering Services in Taipei and Cebu Pacific Catering Services

in the Philippines.

• A continuous commitment to providing the highest levels of food quality

and value-added services by the Group was clearly appreciated by our

customers, with the following recognitions awarded during the year:

æ United Airlines 2005 Caterer of the Year – Gold Star Certificate

(CPCS Taipei)

æ United Airlines 2005 Caterer of the Year – Gold Star Certificate (VAC)

æ ANA Overseas Best Caterer of 2005 – Bronze Prize (VAC)

æ Cathay Pacific 2005 Best Caterer – Diamond Award (CLS Toronto)

æ Japan Airlines 2005 Caterer of the Year (CLS Vancouver)

æ Philippine Airlines Best Airline Caterer Asia Region –

First runner up (Cebu)

2006 has been another year of economic challenge for the aviation industry and, while aircraft load factors and international

passenger and cargo traffic out of Hong Kong International Airport continues to grow, the environment for the industry remains

very competitive.

This competitive environment is continuing to put pressure on margins, forcing airlines to continue to seek more for less from

their service providers. The challenge for the in-flight catering industry is to provide innovative solutions that can satisfy these

business demands.

I know we cannot rest on our laurels, so let me assure you that we will continue to make

the necessary investments to ensure that the expectations of our customers will continue

to be satisfied.

I would like to express my heartfelt thanks to all of our in-flight kitchens, our customers,

suppliers and staff for their effort and support in helping us to achieve a successful 2006.

Finally, I take this opportunity to wish the season’s greetings to each and every one of

you and your families.

4

Management Movements –New General Manager Onboard

Daniel enjoys travelling as his philosophy on leading a balanced life

A great picture taken at GM Handover Party on 15th August: (From left) Angus Barclay,our former General Manager, Daniel Cheung, General Manager, Alex Chau, CEO, Clara Ma,

our former Commercial Manager and Philip Cocks, Commercial Manager

Turning to his vision for CPCS, Daniel said that he is passionate about the CPCS mission of achieving total customer satisfaction.

To ensure CPCS is recognised as the best flight kitchen in Asia, he aims to combine unsurpassed product choice and quality with

unparalleled service excellence for all CPCS customers.

Describing his philosophy on leading a balanced life, Daniel said that it is important to develop oneself as a well-rounded person.

In his spare time, Daniel enjoys ten-pin bowling, photography and reading.

Daniel Cheung, a veteran of Cathay Pacific, succeeded Angus

Barclay as General Manager of CPCS in October 2006. Daniel

joined CX in 1979, more than 27 years ago. Daniel’s extensive

experience in the aviation industry and in different management

appointments has positioned him well to lead the CPCS into the

future.

Prior to joining CPCS, Daniel was at the helm of Vogue Laundry

Services, a wholly-owned subsidiary of Cathay Pacific, where he

was General Manager for nearly five years.

During his many years with CX, Daniel has been a high-achiever

in a wide range of management fields. He has a broad

international perspective, having worked in the cargo

department, staff training centre and ground services department

in Hong Kong. He has also held different managerial positions

in Indonesia, Malaysia and Turkey in the areas of sales and

marketing as well as port and country management.

Daniel believes in hard work, dedication, integrity,

fairness and loyalty. He encourages these qualities

when dealing with all our stakeholders, and intends

to supplement these values by providing leadership

that will concentrate on embedding a culture of

customer orientation, supply chain excellence and

teamwork at CPCS.

Elaborating on his management style and mode of

operation, Daniel already has in mind a range of

development strategies. These include the promotion

of continuous improvement in the delivery of value-

adding services, product development and effective

purchasing, placing CPCS at the forefront in tackling

the challenges posed by the emergence of low cost

carriers and price pressures put forward by customers.

James is grateful for having had the opportunity

to be sponsored to receive elementary to

advanced training at the Chinese Cuisine

Training Institute. His effort and passion for

Chinese cuisine have been greatly demonstrated

by the outstanding results he achieved. Seldom

do people receive both the Certification at the

Intermediate level of the HK Trade Test as well

as the Licensed Advanced Level Certification

from the Mainland China Trade Exam Board.

James was one of only seven graduates to

receive both awards of certification. CPCS is

very proud of his success.

Our goal is to provide each member of staff

with the training and learning experience

necessary to bring out an individual’s creative

approach and high level of professionalism

towards service excellence.

CPCS Discovers and Cultivatesthe Dreams of Staff

CPCS fully believes that "people" is a company’s most valuable asset

of all. Hence, we place a strong focus on the continuous development

of our Company personnel.

James Yau joined CPCS’ chef apprentice programme in 2000. Within

four years, he was promoted to Chef de partie in the Business Class

Chinese Cuisine section. James’ love for cooking comes from working

as a military chef in Singapore. After returning to Hong Kong, he

decided to pursue his career at CPCS. He started his training in Western

cuisine. Later on, he found himself fascinated by Chinese cuisine and

wanted to hone his Chinese culinary skills. CPCS always focuses on

nurturing its people and ensuring their growth in the Company. We

are committed to helping employees reach their goals. Therefore,

we supported James while he undertook progressive training at the

Chinese Cuisine Training Institute for a total of four years.

Talented chefs from our Business Class Chinese Cuisine Section:(From left) Wong Kwan, Sam Tam, James Yau, Mak Kwok Chi,Phillip Kwan and Paul Wun

James proudly receives his certification at his graduation ceremony

5

New Blood Invigorates the Marketing andCustomer Services Department

Ricky Wong, new Airline Account Manager, is ready tocontribute to the achievement of greater success for us all

6

The Airline Account Manager is the airline’s primary point of contact. Ricky currently serves as the communication channel

for Aeroflot Russian International Airlines, Air China, British Airways, Vietnam Airlines and private jet enterprises. "I’ll keep

up my efforts to establish an effective bridge between CPCS and our airline customers. More importantly, I will ensure that

quality products and services are delivered at all times to foster mutual understanding for all our valued business partnerships.

There are always challenges lying ahead of us, and to turn these challenges into opportunities, we must rely on the collaboration

of various sectors within the industry. I look forward to working with you all and to contribute to the achievement of greater

success for us all."

Ricky loves music and dancing. "I dance a lot in my leisure time. Dancing has become a very important part of my life. Not

only does it provide me with a channel to release my stress, it also teaches me about teamwork and builds up my confidence."

Ricky Wong is the new CPCS Airline Account Manager, succeeding

Gary Cheung, the previous Manager. Ricky took up his new position

on 7th August 2006. Ricky’s name might be new to many of us, but

he is certainly not a freshman in the aviation industry.

After graduating from university, Ricky joined an overseas airline

as a flight attendant, a position he held for nearly three years.

"Frankly speaking, I didn’t think of starting my career in the aviation

industry as a flight attendant, but my decision to do so proved right.

The flying experience has not only provided me with many

unforgettable memories, it has also given me a valuable chance to

explore the virtues of what customer service really means in this

vibrant and ever-changing industry," said Ricky.

Ricky joined CPCS in 2005 as a Marketing and

Customer Services Officer, being promoted to

Airline Account Manager a year later. "It gives

me great pleasure to take up this new position,

as I regard it as a major step in my career.

Though the scope of duty and responsibility

is completely different, my exposure to in-flight

services obtained from my previous post has

definitely equipped me for this new challenge."

Team picture: (From left) Jackson Ng, Joanne Cheung,Johnnie Mak, Ricky Wong, Stanley Siu and KK Leung

CPCS is pleased to announce that seven carriers have joined our customer base in the second half of the year, bringing the total

number of airline customers to a record high of 38. The newly joined customers are Air Atlanta Icelandic (CC), AirBridge Cargo

(VI), Air Niugini (PX), ACT Airlines (9T), Saudi Arabian Airlines (SV), Sky Express Air Cargo (G3) and Tesis Airlines (UZ).

7

CPCS Reports a Record HighSeven New Customers

Air Atlanta Icelandic

Air Atlanta Icelandic (CC) was founded in 1986. It is a

supplementary airline aiming at offering various solutions

to other passengers and freight airlines to achieve

flexibility in operations. Currently, it has a fleet of

approximately 30 - 40 passenger and cargo aircraft. Its

core business activity is leasing aircraft to other operators.

Air Atlanta Icelandic launched its Hong Kong - Beijing

service on 9th June 2006 and CPCS is the caterer chosen

to provide meals for its cargo flights.

AirBridge Cargo

AirBridge Cargo (VI) is a cargo carrier based in Russia. It became

the first Russian cargo airline to perform a flight using a Boeing

747 in May 2004, when it started its first scheduled flight.

Currently, it has a fleet of four Boeing 747 aircraft and is

endeavouring to operate a fleet of a minimum of eight Boeing

747s and four to six Russian-built aircraft.

AirBridge Cargo launched its Hong Kong service on 2nd July

2006. It operates three weekly cargo flights from Hong Kong

to Russia.

Air Niugini

Air Niugini (PX) was founded in 1973 as the national carrier of Papua New Guinea,

a country located to the north of Australia.

Air Niugini resumed flying to Hong Kong in early August 2006. The passenger

flight service from Port Moresby, the capital of Papua New Guinea, to Hong Kong

operates as an extension of the Manila flight.

Starting from 9th August 2006, CPCS provides catering services for its return flight,

departing from Hong Kong to Manila every Wednesday.

ACT Airlines

ACT Airlines (9T) was established on 21st September 2004. It is the youngest

air cargo carrier of Turkey, and performs unscheduled Air Cargo Transportation.

ACT Airlines was acquired in March 2006 by the two important visionaries

of the Turkish Private Civil Aviation industry, Yavuz Cizmeci and Cankut

Bagana (also a shareholder of Onur Air). It has currently six A300 B4 freighters

working on regular flights from Istanbul to Germany and the United Kingdom.

On 1st October 2006, ACT Airlines launched its Hong Kong service, choosing

CPCS as the caterer to provide meals for its flights.

AirBridgeCargoV O L G A - D N E P R G R O U P

Jackson Ng (left) and Joanne Cheung (second from left)gladly celebrated PX's inaugural flight with PX crew

8

Tesis Airlines

Tesis Airline (UZ) has been operating in the airfreight market since 1992. Currently,

its fleet consists of seven owned and four leased aircraft. In addition to operating cargo

flights within Russia, Tesis Airlines has also developed diverse international routes to

Africa, the Middle East, Europe, Asia and South-East Asia.

In order to cope with the increasing demand for air transportation of goods between

Russia and China, it is committed to developing and expanding its cargo flight routes

to different ports of Mainland China, including Guangzhou, Shenzhen, Tianjin, Nanjing,

Shenyang and Beijing.

CPCS has been chosen to provide catering services to its flights from 29th October 2006.

1

2

1. Tony Tsang, Sous Chef (left) and Hon Kam Tong, OPS Supervisor(right), presented a cake to celebrate SV's inaugural flight

2. Saudi Arabian Airlines launched its HKG to MNL passenger flighton 15th July 2006

Saudi Arabian Airlines

Saudi Arabian Airlines (SV) started operations in 1945 and has grown to an international

carrier with a fleet of approximately 150 aircraft. Its fleet of freighters flies to 10 different

destinations such as Africa, Asia, Europe and the USA. It operates two weekly cargo

flights from Hong Kong to Bangkok.

Saudi Arabian Airlines launched its Hong Kong to Manila passenger flight on 15th July

2006 with top-up meals supplied by CPCS.

Sky Express Air Cargo

Sky Express Air Cargo (G3) is a partner of Sky Express based in

Crete, Greece. On 1st September 2006, Sky Express Air Cargo

started operating three weekly flights from Hong Kong to

Athens by using its Boeing 747 cargo aircraft. During 2006, a

second Boeing 747 will join the airline’s cargo fleet, and by

2007, the fleet will expand to three aircraft to cope with the

continuously increasing demand for air transportation of goods

between Europe and Asia.

CPCS was chosen to provide meals for cargo flights of Sky

Express Air Cargo from 3rd July 2006.

Sky expressa i r c a r g o

9

Celebrating 10-Years ofPartnership with EVA Air

This year marks 10 years of partnership between EVA Air and CPCS

in airline catering. With 53 flights from Hong Kong to Taipei every

week, EVA Air (BR) has been one of our most loyal customers.

In appreciation of EVA Air's long-time support to CPCS, Mr Alex Chau,

Chief Executive Officer; Mr Daniel Cheung, General Manager; Ms

Joanne Cheung, Marketing and Customer Services Manager; and Ms

Janet Kwan, Pricing and Contract Manager, paused to recognise the

10th anniversary of the two organisations’ relationship by paying a

special visit to Taipei on 19th October 2006.

"The long-term success of this partnership is due to top quality products and services, swift response to customer’s feedback, a can-

do attitude and, most of all, a mutual commitment to, and trust in, one another," says CEO Mr Alex Chau. "We're grateful to EVA

Air for their commitment to this ongoing relationship. It not only means an endorsement of the customer’s appreciation of CPCS’

excellent services and products over the past years, but also signifies recognition of the efforts that our staff has put forward in serving

customers. We look forward to further enhancing our products and services in achieving complete satisfaction for our customers."

The anniversary allows us to look back at our achievements and the wealth of partnerships we have forged over the years. In short,

partnerships are very valuable to CPCS; their significance goes far beyond more and better businesses.

As a token of appreciation, Alex Chau presents an agate stand to Robert Yang,Executive Vice President of EVA Air

The CPCS catering story goes back to the 1940s. Over the past years, under the

joint efforts of both management and staff, CPCS has gradually grown from a

small-scale catering kitchen into one of the largest flight kitchens in the world.

With the increasing demand for authentic Chinese cuisine, CPCS is due to enhance

it further, making Chinese dishes of very high standard to whet our customers'

appetite, to ensure they enjoy as many gastronomic experiences as possible

while flying.

"A Taste of Home " –Best Chinese Food in the AirCPCS was delighted to assist with the birth of Cathay Pacific Airways’ first cooking book,

"A Taste of Home – Best Chinese Food in the Air", in November 2006.

The book features 40 easy-to-follow recipes provided by the eight internationally

renowned Hong Kong restaurants taking part in the airline’s current "Best Chinese Food

in the Air" promotion. CPCS is extremely pleased to be one of the eight chosen to take

part in this promotion.

Phillip Kwan, the CPCS Chinese Cuisine Consultant, shared his secret recipes with readers.

The objective is to have everyone able to enjoy in-flight quality Chinese food menus

not just at 30,000 feet in the air, but also at home with the family by using these easy

to use recipes.CX crew gladly show some of the signature dishes

from BCFITA promotionPhillip Kwan generously shares his secret recipes with readers

Lending an Extra Hand Brings Hope to Every Man

The CPCS family values contributing to the community as one of our Company missions. Awarded the title of a "Caring Company"

by the Hong Kong Council of Social Service for three consecutive years, delivering care and consideration has become deeply

embedded in the CPCS corporate culture. Patients, underprivileged children and the elderly are no strangers to us. This year,

CPCS continues to practise good corporate citizenship by participating in different events to serve those in need.

UNICEF Change for Good Field Visit 2006

Despite the fact that we often get confused when

communicating with one another or feel inadequate in our

efforts to improve the world, two of our colleagues – Ms Karen

Lau and Ms Joyce Yan - discovered that "communication between

people can be as easy as a smile, a waving hand, a hug or a

glimpse of the eyes."

To understand how funds raised through the "Change for

Good" programme can help improve children’s lives in the

Philippines, a soul touching trip to Dumaguete was jointly

organised by The United Nations Children’s Fund and Cathay

Pacific Airways from 16th to 21st October 2006. Karen and

Joyce, together with more than twenty CX comrades, spent a

week visiting local schools, natal care hospitals, crisis intervention

and rehabilitation centres. UNICEF showed pictures of how the

local people lived their lives – from the unborn to the adolescent.

The group was deeply touched by the courage and passion the

children exhibited. The volunteers made the children’s day

better by communicating their care and consideration through

creative games and story telling.

"All the simple songs, simple games and simple presents we

shared with the children may have cost little, but the heart of

all volunteers is valued as priceless to them," said Karen.

By joining this programme, we hope to let these children know

that they have not been forgotten and that we will always be

committed to bringing help and hope to communities in need

around the world.

Karen's care brings joy and hope to the children in the Philippines

10

CAD/CX 60th Anniversary Charity Run and Walk

Children are our most valuable future assets of any society.

We grasp every opportunity to support charities that

educate, empower and invest in young people. On 17th

September 2006, we lent a helping hand to support the

CAD/CX 60th Anniversary Charity Run and Walk event.

From left: Joanne Cheung, Philip Cocks, Alex Chau, Jacqueline Leung andYuen Hon Kit participate in the CAD/CX Charity Run and Walk event

11

From left: Kuby Hong, Alex Chau, Angus Barclay and Jörg Kubiszextend a warm welcome to Marco

The visit began with warm greetings from our Chief Executive

Officer, Mr Alex Chau, and former General Manager, Mr

Angus Barclay. Marco dressed up in the well-fitting chef’s

uniform we had prepared for him, and was appointed chief

assistant to our Executive Chef, Mr Jörg Kubisz. The well-

equipped flight kitchen, especially the huge Chinese wok

station and the automatic omelette-making machine,

impressed our visitors. The tour ended with a cordial

reception from our colleagues, with a memorial picture of

the group taken at our staff canteen.

Having a strong sense of social responsibility, CPCS actively

supports charity organisations. A collection box was placed

at CPCS after the visit, and HK$5,280 was raised.

A little goes a long way towards transforming the life of

many unfortunate children. At CPCS, we do our best to

alleviate the unpleasant conditions that these unfortunate

children face in their daily lives.

The event was organised as a celebration of the 60th

anniversary of both the Hong Kong Civil Aviation

Department and Cathay Pacific Airways. Our Chief

Executive, Mr Alex Chau; General Manager, Mr Daniel

Cheung; together with Commercial Manager, Mr Philip

Cocks, led a team of eight colleagues who participated in

the event. Besides physical involvement, we sponsored

700 muffins for nearly 500 participants as grateful thanks

for their contribution to the charity. A total of HK$150,000

was raised, and will be donated to the Community Chest

for boosting its Children and Youth Services and Community

Development programme in the Tung Chung area.

CPCS will continue to seek to fulfil its target of cultivating

the next generation of social change agents.

Marco Polo Pilot Bear Visit

To many children, a teddy bear may be a much-desired

Christmas gift. Yet, a bear can mean even more to those

in need of our immediate support. Aimed at raising

funds for helping mentally and physically handicapped

children, Marco Polo, the Sunnyside Club’s pilot bear,

visited CPCS with his admirers on 4th August 2006.

The long-awaited A380 has started its worldwide technical proving

flight from its home city, Toulouse in France, with Hong Kong chosen

as one of the ten key destinations for this very important trial flight.

For the first time, the Airbus super-jumbo, which is the world’s largest

passenger aircraft, successfully touched down at the Hong Kong

International Airport on 18th November 2006. During its two-day

stay in Hong Kong, the aircraft went through a series of facility

trials and ramp services, including parking, power supply, maintenance,

refuelling and catering.

CPCS was delighted to participate in the trials by providing catering

services to the technical team and the flight crew onboard. To facilitate the operational handling of catering services for the

A380 aircraft, the CPCS has ordered two specially designed hi-loaders dedicated to the super-jumbo. The so-called A380 Upper

Deck Catering Uplifts are due to arrive in Hong Kong in July 2008.

CPCS Ready for the A380 Super-jumbo

When CPCS Hi-loader meets the A380 Super-jumbo...

CPCS’ principal mission is to become the best in-flight catering company in the Asia

Pacific region. Hence, we are forward-looking and willing to improve the productivity

and process flow to stay competitive as the largest Hong Kong-based air caterer.

New Initiatives to Meet NewChallenges – Flying to New Heights

12

On 6th March 2006, we launched a 16-week project called

"Fly to New Heights", to equip CPCS staff with new approaches

for greater productivity in the Dishing, Tray Setting and

Commissary Sections. Because we have one of the most

sophisticated in-flight kitchens, we could look at the wider

picture and identify our long-term strategy in order to keep

up with the productivity challenges by working closely with

our consultant, Proudfoot Consulting.

As explained by our former General Manager, Mr Angus

Barclay, "The purpose of the project is to learn and apply new

skills and approaches which will make us stronger and keep

us ahead of the competition." Thus, a comprehensive

Management Operating System (MOS) was introduced for

the optimisation of work processes and resource requirements.

MOS emphasises short interval management in identifying

and eliminating non-value adding time. Training was arranged

for managers, task team members and supervisors to enrich

their knowledge of active management and new initiatives.

After 16 weeks of intensive work, the average productivity

improvement reached the project goal. However, the project

did not come to an end there. A sustainability audit team

was formed to look for a steady improvement of the utilisation

of the new MOS tools and to apply the skills to other areas

of the business.

No matter how fast the market will change and how volatile

it becomes, we will sustain our commitment to provide

continuous improvement and service excellence, which is the

only reliable formula to ensure the support and long-term

satisfaction of all our customers. The success of this project

meaning productivity improvement allows our customers to

enjoy exceptional quality service by receiving a proactive

attitude, faster response times and greater flexibility. CPCS

will continue to cultivate a favourable environment where

customer interests are protected despite all the challenges

lying ahead.

Although the business environment ahead is full of challenges,

especially in the area of rising costs, CPCS is determined to

tackle these challenges and remain both strong and

competitive.

We believe effective purchasing will benefit both the

Company and our customers in controlling costs and getting

the best value from suppliers. Therefore, from January 2006,

our Commercial Manager, Mr Philip Cocks, organised a series

of training workshops to enrich managerial staff with the

knowledge, skills and critical mindsets required for purchasing

activities.

"The aim of these workshops is to help us better satisfy

customers’ needs and to deliver tangible benefits by

continuously improving strategic management of the supply

network," said Philip.

We are convinced that as one of the largest air caterers in

the Asia Pacific region, we need to adopt a more systematic

approach towards the supply market. It was definitely eye

opening. Staff received exposure to all essential aspects of

world-class approaches to purchasing. Thanks to Philip for

preparing us to meet new challenges in order to attain

further growth in business!

New Thoughts onMeeting Planned Targets– Purchasing Workshops

Philip Cocks shares hisexpertise at PurchasingWorkshop

13

CPCS Proud to Raise Future LeadersCPCS is proud of its reputation as a customer-oriented team and is committed

to a culture of continuous improvement. To secure the long-term success of

the Company, we put a concerted effort into developing the right pool of

young talent for succession planning and business management. We have two

different trainee programmes, the Management Trainee Programme (renamed

as Graduate Trainee Programme in 2002) and the Supervisor Trainee Programme,

launched in 1993 and 1995, respectively, to equip young trainees with the kind

of competencies, values, skills and experience they require to become future

leaders of our Company. Let us share the thoughts of staff members who have

been through this training programme with us.

Elizabeth Ting – Assistant Purchasing Manager,

2001 Management Trainee

Elizabeth Ting started her career with Cathay Pacific Catering Services as

a Management Trainee in 2001. "To me, working in the airline catering

industry means being part of a professional system, which delivers world-

class catering services to airline customers globally," said Elizabeth. "Being

a Management Trainee also means that I am part of the management

team, always open to future opportunities and to learning new skills, and

always ready to face new challenges for the business."

"As a Management Trainee, I was offered a 24-month comprehensive

training programme. The training period provided me with hands-on

experience in various departments, which in turn gave me a much deeper

understanding of the issues between the Company and its customers, as

well as our very important inter-departmental relationships. It also gave

me the opportunity to develop myself in different departments and gain

exposure to various job tasks."

"After being a member of the CPCS family for five years, I am now working

as an Assistant Purchasing Manager. My vision is to maximise the value

of each purchase so that it best fits the current and future business

requirements. I would also like to make sure that everyone in my department

understands the Company’s objectives and strategies, and to ensure the

purchasing process is achieved with the highest efficiency possible."

On top of the practical learning experiences that I have gained over the

years, I have also achieved great relationships in such a friendly, supportive

and caring family - a place where everyone strives to provide the best

possible service whilst maintaining a high standard of excellence. Thanks

to CPCS!"

Future leaders: (From left) Samuel Chan, Elizabeth Ting and Ernest Lau

Ernest Lau – Senior Warehouse and

Logistics Supervisor, 2000 Supervisor

Trainee

"I am proud to have started my career with

Cathay Pacific Catering Services, a renowned

airline catering company that is a good

choice for those who are looking for a

challenging career."

"To me, working in the airline catering industry

means being part of a professional system…"

14

"I have been very impressed by the customised training programme

that CPCS has designed for me, and the enthusiastic ambiance of the

working environment. During my two-year training period, I have

had the opportunity to experience challenges in different departments,

therefore getting to understand the operations of the whole Company.

I was fascinated by the effective operation system and the state-of-

the-art facility. The training has broadened my horizons and enriched

both my technical and commercial knowledge. Together with all the

laughter, tears, achievements and setbacks, I feel that I am now trained

to be a knowledgeable and experienced leader!"

"In the blink of an eye, I have been working with the CPCS family for

six years. The most unforgettable experience was the total support

and commitment demonstrated by the staff in their response to the

SARS contingency in 2003. The Company was able to overcome this

crisis and get back on track immediately. Both our teamwork and our

'giving the best' spirit thrilled me. We truly demonstrated our alertness

and readiness for any kind of challenge, and our ability to meet them."

"'Uneasy lies the head that wears the crown!' From a trainee to becoming a leader, the position brings with it certain expectations

and responsibilities. My challenge ahead is leading the team to provide continuous contributions to CPCS in areas such as

delivering profit, driving growth in productivity and running operations efficiently. Yet, I believe that anything worth doing

is worth doing well. I am ready and confident to fly to new heights with the CPCS family!"

Samuel Chan – 2006 Graduate Trainee

"Working in the airline catering industry means exploring a whole new world

for me. It is a very exciting job and a great opportunity to devote myself in

this unique field. Currently, I am attached to one of the commercial departments

as part of the training programme. During this training period, my objective

will be to understand the daily operations of the department and learn managerial

techniques from different members of staff. As for the training, I am enjoying

it and can see that CPCS emphasises training and gives full support to its staff.

The training period offers a chance for newcomers to get acquainted with the

daily practices of the Company, which is a great help for us to become part of

it. The rotational scheme between different departments provides an excellent

opportunity for me to gain a thoroughly comprehensive understanding of the

whole business."

"The trainee programme of CPCS not only offers a start on an ideal career

path, it also allows the graduate trainees to gain knowledge of our field and a chance to develop oneself. So far, even

after only a few months I have already learned a lot in CPCS. I am sure that there are plenty of opportunities and learning

experiences to come in the near future. What I enjoy the most is working with the people here. They are friendly, helpful

and willing to lend me a hand whenever I need it. CPCS is truly a big, happy family."

"Being a new trainee, I hope to provide innovative ideas, new methods and practical suggestions to assist our Company.

Also, as part of the Company, I wish to contribute to its development. Finally, I consider CPCS as a caring company with a

good working atmosphere that I am proud to be part of!"

"I feel that I am now trained to be a

knowledgeable and experienced leader!"

"I consider CPCS as a caring company

with a good working atmosphere

that I am proud to be part of!"

15

CLS Catering Services Toronto

CLS Catering Services Vancouver

CLS Vancouver is pleased to announce that we achieved a new daily meal production

record this summer - 18,000 meals per day, which symbolises our customers’ confidence

in the quality and service of our kitchen.

As a form of recognition of our service quality, CLS Vancouver was honoured to cater

two VVIP flights for Vietnam Airlines (VN) again in September. Their general manager,

Mr Trinh Quyet Thang, expressed his appreciation for the service that was provided.

Continuous improvement is part of our corporate culture. This year, we are thrilled to receive the "Caterer of the Year Award"

for 2005 from Japan Airlines (JL). The award was presented to the kitchen on 25th October 2006. CLS Vancouver is certainly

proud of this achievement, and will continue to strive for the highest levels of service excellence for all of our customers.

Lastly, we are excited to introduce our new Executive Chef, Mr Jean Pierre Guerin, who will be on board in the next few months.

Mr Guerin has many years of airline catering experience, most recently in the US and Canada, where he has developed an

impressive culinary background, both locally and internationally. We are looking forward to further business development

with his arrival and innovations.

Another new customer is Porter Airlines (PD), a brand new regional carrier

based in Toronto’s downtown city airport. They run a fleet of Bombardier

Dash 8 Q400 aircraft for which we provide catering services.

Our persistence in conscientious work has also paid off during this very

fruitful summer as CLS Catering Services Toronto was awarded the “Cathay

Pacific Best Caterer Diamond Award” for 2005. The happy moment was

celebrated by Mr Charles Grossrieder, Manager of Catering Services, Cathay

Pacific Airways; Mr Peter Ho, Regional Catering Manager, North America

Cathay Pacific Airways; and our management team at the presentation

ceremony. At CLS Toronto, our commitment to our customers will always

be to strive for higher achievement.

Rick Bushell (left), General Manager of CLSToronto was proud to receive the award

from Charles Grossrieder, Manager ofCatering Services, Cathay Pacific Airways

Family members from CLS Catering Services Toronto worked through their busiest summer

since 2001 in the last few months. Production volumes greatly increased, as numerous flights

were added to meet growing demand.

Additional to the increasing volumes of our existing members, it is our pleasure to welcome

two new members on our customer list of CLS Catering Services Toronto.

Transaero Airlines (UN), our new customer from Russia, joined us for their three weekly flights

from Moscow to Toronto. We cater for their two-class service B763 aircraft.

Executive Chef Vince Sicilia and the "Cathay PacificBest Caterer Diamond Award"

Martin Mahovlich (middle), General ManagerCLS Vancouver, receives the award fromManabu Sata (third from right), VP and

Regional Manager of Canada (JAL)

16

The year 2006 has been a year of growth for Vietnam Air

Caterers. VAC is pleased to welcome new airline customers

and to expand the flight schedule of current customers.

Air China (CA) established a business partnership with VAC

on 16th June 2006. Catering uplift is served for its flights

operating four times a week.

Shenzhen Airlines (ZH) also commenced using VAC as caterer

for its three weekly flights. The partnership has been effective

since 28th August 2006.

Royal Brunei Airline (BI) also started flights to Vietnam in

May.

Apart from new customers, we are happy to announce that

the business volume of our existing customers has expanded

in the second quarter of 2006. Korean Air (KE) increased its

weekly flights frequency from three to seven. At the same

time, Asiana Airline (OZ) also boosted its weekly flight

frequency from four to seven. Increased production demand

exerted greater pressure on us; but VAC is delighted to accept

the challenges of growing with our customers.

Cebu Pacific Catering Services is the only international in-flight caterer operating inside the Mactan-Cebu

International Airport, and staff from Cebu is proud of a milestone achieved in 2006.

The 10th Anniversary and Thanksgiving celebration took place under a jubilant atmosphere at the Hilton-

Cebu Resort & Spa on 2nd October 2006. The event was enriched by the participation of Mr Manuel H.

Osmeña, our Chairman; and the Board of Directors from the sister companies of Manila and Hong Kong.

Cebu Pacific Catering Services

Vietnam Air Caterers

The celebration was not simply a milestone for our business; it was also tangible testimony of our

commitment to customer satisfaction. We were delighted to receive the "Best Airline Caterer

Award," Asia Region 1st runner up from Philippine Airlines (PR) from their station manager, Mr

Amador Pilapil Jr. With the effort put on promotion of food safety, the Bureau of Quarantine

also issued and presented the HACCP certification at the celebration. A 10-layered suitcase-designed

cake was prepared as an appropriate way to mark our achievement, one layer for each year.

The management and staff of CPCS-Cebu consider all these recognitions as a start for the real

battle – to be at par with the world-class in-flight caterers. The challenge for everybody has formally

commenced.

VAC understands the importance of always improving our

service quality in face of the competitive business

environment. Hence, a purchase contract was signed with

Meiko to replace the existing glass washer with a new

model in November, which will greatly improve washing

efficiency. In addition, VAC has successfully upgraded the

Inflair Operating System to Inflair Net. Inflair Net is specially

designed for use in airline catering operations. Its fully

integrated database covers all aspects of production, flight

operations, inventory control, customer requirement, cost

control and management reports. With the new

technology, we are ready for the challenges to meet the

growing service demand.

Compliments from customers are our greatest drive towards

excellence. VAC has just received the "Bronze Catering

Award" from its service partner, All Nippon Airways (NH).

The prize recognised the high achievement of VAC

throughout 2005. We will keep up our passion for service

and head for greater success in the future.

Cebu staff enjoy the momentof celebration

A 10-layered suitcase-designedcake to mark Cebu Pacific

Catering's achievement

Bert Dinkel (second from left),Deputy General Manager of VAC,was excited to receive the awardfrom NH