Copyright © 2019 News in Flight | All Rights Reserved
Hong Kong Express, the low-cost arm of Cathay Pacific has asked its staff to take pay cuts and unpaid leave starting next year.
The airline wanted to pilots to take up to 40 percent pay cut and the non-flying staff to take 20 days of unpaid leave in the first six months of next year.
An estimated 200 pilots will affected by this new contract, and a captain would see his total pay fall from HK$132,000 (base pay HK$57,000) to HK$79,000 a month.
The new take-it-or-leave-it contracts are part of the low-cost carrier’s latest efforts to cut costs, while keeping the jobs.
Last month, Cathay Pacific opted to shut down its regional carrier “Cathay Dragon” last month, leaving HK Express as the only subsidiary airline.
“with many challenges ahead of us, and regrettably, what we have done so far is not enough to secure our future”, the CEO was appealing the employees in the memo to the staff.
The current CEO, Ng Kit-man said, she would take a 15 per cent pay cut through 2021, while senior directors would take a reduction of the same amount for the first six months of next year.
Hong Kong Express reported a loss of HK$1.03 billion (US$139,000) for the fiscal year,