Cathay Pacific announces year-end salary increment, 13th month payment and further profit share
16 Nov 2010
Cathay Pacific Airways today announced the year-end salary increment for its Hong Kong-based staff together with details of a discretionary 13th month payment and a further profit share in light of the company’s continued strong performance this year.
The airline announced that eligible Hong Kong staff will receive an average salary increase in the range of 4 to 4.5%.
The company also confirmed that all eligible staff in Hong Kong will receive a discretionary 13th month payment together with their December salary payment. Barring adverse circumstances, staff can expect to receive a profit share of at least another three weeks’ salary after Cathay Pacific announces its full-year results next March, in addition to the two weeks paid in advance in August this year after the airline posted a record interim profit.
Cathay Pacific has seen a remarkable turnaround in its business in 2010, and on Monday issued a trading statement to the Hong Kong Stock Exchange advising its expectation that its full-year profit for 2010 will not be less than HK$12.5 billion following consistently strong demand on both the passenger and cargo sides of its business. The airline’s result will also be boosted by a significant contribution from its strategic partnership with Air China and the profits resulting from the sale of shareholdings in HAECO and Hactl earlier this year.
Cathay Pacific Chief Executive Tony Tyler said: “The nature of the airline industry has always been hugely volatile and our aim is to survive when times are bad and thrive when times are good.
“We have to take a similar approach to rewarding the team. When times are bad, our policy is to work to keep the team together – as happened during the recent downturn. When times are good, we will reward staff by sharing the gains.
“There is no question we are in good times now and we are delighted to reward our staff for a great effort in supporting us through the recent downturn and helping us to achieve what we expect will be a record profit in 2010. I believe this is a fair and reasonable arrangement and one that properly reflects the company’s gratitude for a great job done– and that also strikes the right balance between rewarding our talented team and acknowledging the unwavering support we have received from our shareholders through thick and thin over the last decade.”
Mr Tyler added that through the combination of profit share, discretionary 13th month payment and salary increments, staff will be significantly better off than they were last year. “This is just as it should be when our business is so strong,” he said, adding that the Local Staff Union has agreed to the package.