I agree Singapore does a fantastic job. In my opinion it is because the service is so wonderful that people are price-insensitive and will take SQ even if it is moderatley more expensive. That is a VERY powerful tool in an industry that is prone to price wars.

Cathay, on the other hand, has miserable, even surly, service. I never take fly Cathay when Thai, JAL, ANA, Qantas, Ansett, ANZ, United or SQ is an alternative.

As for cutting costs, the Cathay pilots are the highest paid in the world by a healthy margin. Why should this be so? Perhaps the HKG based pilots need to be well compensated because the cost of living here is so high (although they all live on luxury yachts in Discovery Bay), but why should pilots based in Enlgand make so much more than BA pilots?