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Bloomberg
Cathay Pacific Airways Ltd., Asia’s biggest international carrier, is in talks with its pilots over compensation as it seeks to cut costs after reporting its worst half-half loss in at least two decades.
The airline has been in discussions with its pilots over the past few months as part of its goal to become more competitive, the company said without elaborating. Its pilots are being urged to accept a freeze in their pay and changes to pension benefits to help the carrier cut $128 million in costs, the South China Morning Post reported on Wednesday.
“We will continue to work in a collaborative manner with an aim to come to an agreeable solution,†Hong Kong-based Cathay said. “The goal is to make Cathay Pacific a more competitive organisation and to ensure the long-term sustainable future for the people of the airline.â€
Cathay is facing mounting competition from budget carriers and deep-pocketed mainland rivals, forcing the marquee airline to attract passengers with discounts. Rupert Hogg, who took over as chief executive officer on May 1, announced the elimination of 600 jobs the same month as part of a three-
year transformation programme Cathay revealed earlier this year.
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.
Cathay has reported losses only for three years since it was founded in 1946, once in 1998 in the aftermath of the Asian financial crisis, among others.