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Troubled Cathay talks to pilots hoping they will settle for less
HONG KONG's Cathay Pacific Airways is in talks with its pilots over pay and benefits as it seeks to cut costs after suffering its worst first half in 20 years, reports Bloomberg.
Pilots are being urged to accept a freeze in their pay and changes to pension benefits to help the carrier cut HK$1 billion (US$128 million) in costs.
"We will continue to work with an aim to come to an agreeable solution," Cathay said. "The goal is to make Cathay Pacific a more competitive and ensure the long-term sustainable future."
Cathay is facing mounting competition from budget carriers and mainland rivals, forcing it to discount fares. Rupert Hogg, who took over as CEO on May 1, announced the elimination of 600 jobs as part of a three-year recovery plan.
The carrier reported a net loss of HK$2.05 billion for the six months through June, potentially putting it on course for the first back-to-back annual losses in its 70-year history.
Pilots are being urged to accept a freeze in their pay and changes to pension benefits to help the carrier cut HK$1 billion (US$128 million) in costs.
"We will continue to work with an aim to come to an agreeable solution," Cathay said. "The goal is to make Cathay Pacific a more competitive and ensure the long-term sustainable future."
Cathay is facing mounting competition from budget carriers and mainland rivals, forcing it to discount fares. Rupert Hogg, who took over as CEO on May 1, announced the elimination of 600 jobs as part of a three-year recovery plan.
The carrier reported a net loss of HK$2.05 billion for the six months through June, potentially putting it on course for the first back-to-back annual losses in its 70-year history.
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