As the unemployment rate starts to decline, with the lowest rate in evidence since the fourth quarter of 2008, it is hoped that 2010 will be a year of recovery and continued growth for the Hong Kong economy.

Similarly, we are seeing the aviation market continue to rebound during the first months of 2010, both in cargo and passenger segments amid improving economic and trade activity. Airlines globally are undergoing a surprisingly strong recovery with Asian and Latin American carriers leading the way. Passenger demand is expected to grow about 5 percent or more for the year, while cargo demand could see double-digit percentage growth.

Whilst this is all good news, with overall economic growth forecast to be around 3.5%, a word of caution must prevail as this rebound is unlikely to be significant enough to return to the pre-crisis levels of 2008 just yet and rising fuel costs will continue to be a dampener on growth.

Greece's fiscal crisis also creates a degree of uncertainty as speculators become wary of investing in high risk economies, with concern also spreading to other euro-zone countries as their governments must tackle large national debts to restore market confidence. These events will undoubtedly impact Asia as public spending and overseas trade in these European countries will significantly reduce.

An additional cloud on the horizon, metaphorically speaking, is the continuing uncertainty for Europe’s air travel industry as a result of the continuing impact caused by the Icelandic volcano eruption. Hundreds of flights are threatened with cancellation and thousands of inbound and outbound passengers will be disrupted, adding further challenges to economic recovery. As a catering services provider to the aviation industry, we are facing those same challenges.

However, we must all hope for the best whilst preparing for the worst and whatever the challenge, be it positive or not, CPCS will always strive to provide the best quality and services to our valued customers.

I would like to express my heartfelt thanks to you all, our customers, sister kitchens, suppliers and staff, for your continued support to CPCS throughout the year as we look forward to another successful period in our history together.