Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Struggling Cathay Pacific offers older pilots early retirement to cut costs

Hong Kong carrier said it would offer early retirement to those on historically old contracts, pilots aged 50 and above.

Cathay Pacific and Cathay Dragon are offering early retirement to their more experienced pilots, the company announced in an internal memo.

In one of the first big personnel moves as part of its Covid-19 pandemic restructuring, the Cathay Pacific Group is tackling one of its thorniest issues: pilot costs.

The Hong Kong carrier said it would offer early retirement to those on historically old contracts, pilots aged 50 and above.



They will be paid three months basic salary for each year remaining before normal retirement age plus an extra month’s salary up to a maximum of 12 months, in the special retirement scheme.

Cathay Dragon offered identical terms to pilots over the age of 58.

Captains and first officers on contracts created in 1999, with a retirement age of 55, will be eligible for the scheme if they are 50 and above. Those with contracts dated 2008 or 2018, with a retirement age of 65, will be eligible if they are over 55.

Cathay has projected it will lose HK$9.9 billion (US$1.27 billion) in the first six months of the year as a direct result of the Covid-19 pandemic crippling air travel worldwide.

“As you are aware, we are currently conducting a comprehensive review of all aspects of our business,” the airline told its pilots.

“By the fourth quarter of this year, the Cathay Pacific management team will recommend to the board the optimum future structure of the Cathay group to ensure we remain competitive in the new global travel market

It added in the memo: “The review is ongoing and we will share further information when it becomes available, however, given that we are operating a heavily reduced network at present and for some time to come, we are in a position to invite some our more senior, Hong Kong-based pilots who wish to leave the group early the opportunity to apply for a voluntary early retirement scheme.”

Hammered by the pandemic, Cathay had been losing up to HK$3 billion a month since February but losses had since narrowed to HK$1.5 billion.

It has carried less than 1 per cent of its normal daily passenger volume and its flight schedule has been reduced to single digits for at least three months. The company has responded with pay cuts for frontline staff and executives, among other measures.

The Hong Kong government stepped in with a HK$27.3 billion rescue package in June as part of the airline’s wider HK$39 billion capital restructuring to prevent it from collapsing.

Cathay is conducting a wide-ranging review of its business, which will involve “rationalisation of future planned capacity compared to the pre-crisis plans”, something that could impact jobs. The airline will unveil the scale of changes planned in the fourth quarter of 2020.

In the memo, the airline also told pilots who may have felt uncertain about the future of their job: “There may be appetite amongst this group for the opportunity to retire early.

“We also appreciate that the further way you are from your planned retirement, the more challenging this can be, so we have taken this into account when designing this scheme.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
×