As predicted, 2009 has proven to be a very difficult year for the world economy with the airline industry in particular suffering from the sustained economic downturn. Falling passenger and cargo demand caused many business sectors within the industry to tighten their belts and aggressively reduce their operating costs to offset declining revenue.

This, of course, forced all organisations to review their business models and the options open to them. At CPCS, our approach to these continued cost pressures has been to build closer relationships with both our customers and suppliers and to collaborate on cost saving initiatives through process and supply chain operational efficiencies.

Through these initiatives we have been able to maintain our investment in customer service resulting in macro performance improvement in many aspects of our key service level performance indicators, with a 6% increase in customer compliments noted. CPCS recently commenced catering operations to the world’s largest airliner, the A380, and we will continue to develop our customer service focus throughout 2010.

Recently we have seen world leaders from around the globe gather in Copenhagen for the United Nations Climate Change Convention. This is an environmental issue close to our heart and is reflected through one of our corporate mission objectives: to develop environmental and corporate social responsibility leadership.

In recognition of our role in helping to improve the air quality in the Hong Kong and the Pearl River Delta region, by reducing the amount of pollutants generated from our operations and by recycling kitchen waste and other materials, CPCS was awarded the Clean Air Charter Certification this year from the Hong Kong Chamber of Commerce.
As we come to the end of a difficult year, we face 2010 with renewed confidence as world-wide demand for air travel finally begins to show a few green shoots of recovery and industry forecasts predict Asia will lead the way to growth.

In closing, I would like to thank all CPCS staff for their dedication and hard work and our sister kitchens, customers and suppliers for their ongoing support over this difficult year. Let us stride purposefully into the next decade and enter a new era of even closer cooperation and partnership.