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HONG KONG: Cathay Pacific Airways mentioned it’s going to provide a voluntary scheme to its Hong Kong-based pilots who’re approaching retirement age to go away the group early, in a continued effort to chop prices amid the coronavirus pandemic.
The airline mentioned in an e-mail to Reuters on Saturday it’s taking a look at alternative ways to scale back prices within the medium time period, given decreased passenger demand with no rapid indicators of enchancment. The retirement plan was first reported in native media.
Cathay has already taken short-term measures together with government pay cuts and two rounds of voluntary particular go away scheme.
Pilots aged 50 or 55 and above, relying on the retirement age outlined of their contract as 55 or 65 respectively, are eligible to use for the early retirement scheme, the service mentioned. Pilots aged 58 and above at its regional arm Cathay Dragon are additionally eligible.
“The choice comes after cautious consideration and is an efficient manner for the Group to handle prices. Addressing a selected group of staff for this devoted scheme helps us alter to the brand new working surroundings,” the service mentioned.
The scheme pays pilots who retire early three months fundamental wage for annually remaining earlier than their regular retirement age, plus an extra one-month allowance fee as much as a most of 12 months’ fundamental wage.
Cathay mentioned administration is doing a complete assessment of all elements of the group’s operations, and it’ll make suggestions to the board on the long run measurement and form of the airline by the fourth quarter.
The group was seeking to lower prices, streamline advertising, consolidate pilot contracts and transfer veteran pilots to cheaper contracts, sources mentioned.
Cathay final month warned it anticipated to report a HK$9.9 billion ($1.28 billion) loss for the six months ending June 30, together with impairment fees on 16 planes. The estimated loss can be Cathay’s largest half-yearly loss in at the very least a decade.

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