Cathay Pacific Airways: 'Service Straight from the Heart'

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Case

Reference no. C499-005-1

Simplified Chinese language

Subject category: Human Resource Management / Organisational Behaviour

Authors: Gerard Tocquer; Eva YH Kwan

Published by: Asia Case Research Centre, The University of Hong Kong

Published in: 1999

Length: 24 pages

Data source: Published sources

Topics: Service leadership; The service-profit chain; Organisational climate; Organisational culture

Share a link: https://casecent.re/p/77215

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Abstract

This is a Simplified Chinese version. In 1993, the cabin crew of Cathay Pacific Airways, Hong Kong's flag carrier, went on a large-scale strike, which damaged crew morale. Peter Buecking was appointed General Manager, Inflight Services in 1995. With his inflight services strategy, Peter Buecking restored the morale of cabin crew and improved the quality of inflight services. With the onset of the Asian economic crisis in 1997, Cathay Pacific's revenues dwindled and profits declined. Inflight Services Department (ISD) was under tremendous pressure to cut costs. At the same time, Peter Buecking received a promotion and left ISD. How would his successor in ISD go about cutting costs while maintaining cabin crew's morale and the quality of inflight services?

Location:

Hong Kong

Industry:

Airline

Size:

10,000+ employees

Other setting(s):

1997-1998