Cathay Pacific Announces Changes to Pilots’ Salary Packets

Hong Kong’s flag carrier has announced major changes to the pay and benefit packets of its pilots. The changes will take effect on December 1 and will see pilot salaries linked to performance. There are concerns that these changes may make Cathay less attractive to many potential pilot candidates.

Cathay Pacific, Hong Kong’s flag carrier, has announced that it will be making changes to the benefit and salary packages of its pilots, the South China Morning Post reports. These changes, which are due to come into effect on December 1, will see pay linked to pilot productivity.

Based on information gleaned via an internal memo, the outlet reports that the changes will mean that, “…up to 30 per cent of a pilot’s salary will be variable and tied to the number of hours flown.”

“At present, the airline pays pilots regardless of hours clocked and some have been known to fly 50 to 150 hours less than the company’s maximum 900 hours per year,” the outlet reports.

These changes are intended to both bring the carrier’s pay practices in-line with those of other airlines and to ensure greater productivity at Cathay. The carrier has struggled with profitability in recent years and is looking to recoup financially.

For the last four years, the carrier has also been dogged by a long-running labor dispute over rosters, pay and personal allowances.

In addition to changes in salary and benefits, the paper also reports that, from December, “Cathay will no longer fully cover the HK$1 million ($127,500) cost of pilot training. From December, cadets will have to repay half the amount and this will be done over their first three years of employment.”

There are concerns within the industry that these changes will mean that Cathay may struggle to attract new talent, but a spokesperson for the carrier has dismissed these claims, saying, “We continue to recruit globally to meet our operational needs. We equip our pilots with the best training and support in commercial aviation.”

Offering his insight, Chris Beebe, general secretary of the Hong Kong Aircrew Officers’ Association said that Cathay’s revamp “looks like an effort to reduce pilot costs.”

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