Cathay Pacific offers early retirement scheme to older pilots

Cathay Pacific has already taken short-term measures including executive pay cuts and two rounds of voluntary special leave scheme to cut costs. (AFP)
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Updated 01 August 2020

Cathay Pacific offers early retirement scheme to older pilots

  • Cathay Pacific has already taken short-term measures including executive pay cuts and voluntary special leaves

HONG KONG: Cathay Pacific Airways said it will offer a voluntary scheme to its Hong Kong-based pilots who are approaching retirement age to leave the group early, in a continued effort to cut costs amid the coronavirus pandemic.
The airline said in an email to Reuters on Saturday it is looking at different ways to reduce costs in the medium term, given reduced passenger demand with no immediate signs of improvement. The retirement plan was first reported in local media.
Cathay has already taken short-term measures including executive pay cuts and two rounds of voluntary special leave scheme.
Pilots aged 50 or 55 and above, depending on the retirement age outlined in their contract as 55 or 65 respectively, are eligible to apply for the early retirement scheme, the carrier said. Pilots aged 58 and above at its regional arm Cathay Dragon are also eligible.
“The decision comes after careful consideration and is an effective way for the Group to manage costs. Addressing a specific group of employees for this dedicated scheme helps us adjust to the new operating environment,” the carrier said.
The scheme will pay pilots who retire early three months basic salary for each year remaining before their normal retirement age, plus a further one-month allowance payment up to a maximum of 12 months’ basic salary.
Cathay said management is doing a comprehensive review of all aspects of the group’s operations, and it will make recommendations to the board on the future size and shape of the airline by the fourth quarter.
The group was looking to cut costs, streamline marketing, consolidate pilot contracts and move veteran pilots to cheaper contracts, sources said.
Cathay last month warned it expected to report a HK$9.9 billion ($1.28 billion) loss for the six months ending June 30, including impairment charges on 16 planes. The estimated loss would be Cathay’s biggest half-yearly loss in at least a decade.


Dubai’s Jafza, Israeli business group sign strategic partnership

Updated 26 September 2020

Dubai’s Jafza, Israeli business group sign strategic partnership

DUBAI: Dubai’s Jebel Ali Free Zone has signed a strategic partnership with an Israeli business group to support businesses and encourage economic cooperation following the normalization of ties between the UAE and Israel.

Sultan Ahmed bin Sulayem, the group chairman and chief executive of DP World, and Uriel Lynn, president of the Federation of Israeli Chambers of Commerce, signed the agreement virtually.

As part of the agreement, the two parties will share crucial information on new developments regarding economic relations between the countries aside from efforts to expand ties between businesses.

“The establishment of direct ties between two dynamic and advanced economies in the Middle East will undoubtedly provide impetus to economic growth, transforming the business landscape in the UAE,” bin Sulayem said in a statement.

It will be a mutually advantageous for Dubai and the Israeli business community, as more businesses will utilize the developed facilities and services in Jafza and create a bridgehead for the Israeli business sector to enhance its foreign trade in products and services,” Lynn meanwhile commented.

“Our main goal is to create a forum to promote economic cooperation and create new opportunities for businesses in both countries. Strengthening business ties and enhancing collaboration over time is also one of the primary objectives.”