Cathay Pacific’s announcement that it would eliminate 600 staff jobs from its head office made headlines in the territory and internationally. The mass layoffs followed the loss of HKD3bn the previous year. This case study discusses the possible causes of Cathay Pacific’s plight. Cathay had been among the best airlines in the world and a source of pride to many Hong Kongers. From the service management perspective, this case study describes the situation Cathay Pacific was facing in terms of service marketing, service human resource management, and service operations.
- To allow students to discuss different aspects of service quality and how service quality has an impact on corporate success.
- To allow students to understand the relative impact of one-off events versus a long-term strategy.
- To explore the opportunities and challenges associated with different responses to crisis: what management approaches are available to maintain customers and motivate staff?