Halts higher retirement age talks

2008-11-22  |     NEWSPAPER EDITION

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HONG Kong Dragon Airlines Ltd, a unit of Cathay Pacific Airways Ltd, halted talks about raising cabin crew's retirement age as the global recession saps travel demand.

"Our priority has to be sustaining the business," spokesman Ivan Chan said in an e-mailed reply to questions by Bloomberg News yesterday. "All resources need to be focused on getting through these difficult times."

Keeping the retirement age at 45, instead of 55, will help Dragonair reduce labor costs as flight attendants will leave earlier. Cathay Pacific, Hong Kong's largest carrier, has also cut year-end bonuses for local staff and instituted a hiring freeze after forecasting "disappointing" earnings for the year.

The retirement age for Hong Kong-based crew at Cathay Pacific airline was raised to 55 from 45 in July.

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