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Cathay Pacific pilots push for seat at table for restructuring talks SYDNEY (Reuters) - Pilots at Hong Kong's Cathay Pacific Airways Ltd are pushing to be included in restructuring talks at the carrier and will run a newspaper advertisement to drum up public support, a union representing them told Reuters on Tuesday. The comments come after the group this month declined to apply for more government employment subsidies for its main business units, freeing it from the condition to retain jobs tied to the grants and fuelling worries of layoffs. "What we want is to make sure if there is some sort of decision with regards to the future of the pilots, that we will be involved in discussions on what the structure looks like," said Chris Beebe, the general secretary of the Hong Kong Aircrew Officers Association (HKAOA). Beebe declined to comment on whether pilots would offer concessions like temporary salary cuts or unpaid leave schemes as have been agreed at other airlines amid crumbling demand due to the coronavirus pandemic. Many Cathay pilots had already participated in a company-wide voluntary unpaid leave scheme, he said. The union will run an advertisement in the South China Morning Post on Wednesday in its push for a seat at the table for talks on the restructuring plan that is due to be announced in the fourth quarter, Beebe said. The advertisement will highlight HKAOA-commissioned research in which most respondents said they thought the union's 2,200 members were important to the city's global reputation. Cathay did not respond immediately to a request for comment. The carrier, which received a $5 billion government rescue package, has refrained from large-scale job cuts but has warned it is reviewing all aspects of its business model. HKAOA represents pilots at the main brand, Cathay Pacific. Pilots at regional brand Cathay Dragon and low-cost carrier HK Express are represented by other unions. Several employees have told Reuters on condition of anonymity that they are bracing for major job losses. Rival Singapore Airlines Ltd has already announced plans to cut around 20% of positions, while Australia's Qantas Airways Ltd has said it will cut nearly 30% of its pre-pandemic staff. https://www.reuters.com/article/marketsNews/idUSL4N2GO0RB?il=0 Back to Top

United, pilots agree on schedule reductions to avoid nearly 3,000 furloughs United Airlines' pilots agreed to reduce their hours to avoid furloughs of close to 3,000 pilots. Carriers have turned to a variety of measures to avoid involuntary furloughs such as leaves of absence and buyouts. United Airlines' pilots approved a plan to avoid furloughs until at least June 2021, the company said Monday, marking the latest cost-cutting deal between an airline and one of its biggest labor groups during the coronavirus pandemic. The Chicago-based carrier earlier this month said it planned to furlough 2,850 pilots, starting Oct. 1, when $25 billion in federal aid that protects airline sector jobs expires. Another 1,000 furloughs were planned for next year. It later reached a preliminary agreement with the pilots' union to reduce minimum hours, essentially spreading schedules out among pilots, and maintain pay rates, which was later approved by union members. The airline is still planning to cut roughly 13,000 jobs beginning next month. American Airlines is planning to slash about 19,000 jobs. Tens of thousands of other employees across all U.S. airlines have accepted carriers' offers of buyouts or leaves of absence aimed at reducing head count. Airlines are hesitant to furlough pilots because their training is costly and time-consuming. The deal will keep pilots on the aircraft they're trained on. While United CEO Scott Kirby has said he doesn't expect demand to return to more than half of 2019 levels without a vaccine, he has emphasized that the carrier should be ready to take advantage of a recovery. "While we still face a difficult path to recovery, your support of this creative and unique agreement puts us in an unparalleled position of strength when demand recovers," United's senior vice president of flight operations, Bryan Quigley, wrote in a staff note Monday. "In addition to avoiding furloughs, this agreement greatly enhances our ability to bounce back - so we can welcome more passengers and return to the 2019 levels of seat and fleet advancement more quickly." The deal won 58% approval from United's roughly 12,000 pilots, will make deeper cuts to minimum hours of pilots who are more junior. Airlines are fighting for new federal funds as October furloughs loom Labor unions and airline executives are urging lawmakers to provide an additional $25 billion in aid that would preserve jobs through the end of March. Further aid has won bipartisan support in Congress and from President Donald Trump. But lawmakers so far haven't reached a new national coronavirus stimulus package that would include the aid, though House Speaker Nancy Pelosi said Sunday that another relief proposal is possible. "With this agreement now solidified, we will turn our focus back to Congress to secure a much-needed CARES Act extension to keep our industry solvent until we recover from this pandemic," Capt. Todd Insler, chairman of the Air Line Pilots Association's United chapter, said in a statement. If airlines get additional aid, the new agreement with pilots would be paused. The deal also included another early retirement option for pilots over the age of 50 with 10 or more years of experience. United's shares ended the day up 5.1% at $35.94. Delta Air Lines, which is still negotiating with its pilots' union to avoid 1,941 furloughs, added 5.2% to $31.34, while American rose 3.8% to $12.76.