A labor dispute with the union representing its cockpit crew has been cited as the main reason Cathay Pacific is drastically cutting back its expansion plans this year, according to reports from the South China Morning Post. Among the plans that have been put on hold are the introduction of daily flights to Manchester in the U.K. and Boston in the U.S., now both delayed until 2017, and the launch of flights to London-Gatwick, which has been pushed back to September 2016.
The Hong-Kong Aircrew Officers Association (HKAOA), representing 2,100 of Cathay’s 2,900 pilots, claimed that the work roster is unfair, and that lack of sleep is putting them – and passengers – in danger. “We have rosters being flown where individuals are losing up to 10 night’s sleep every month,” a pilot said. “They are unable to sleep when their body wants them to 10 times a month. Is this healthy or sustainable?”
In response, the pilots are taking part in a “work-to-rule” action, in which they perform the bare minimum duties as required by their contract, rather than volunteering to work on days off, as was the norm.
On the cargo side, Cathay Pacific Airways actually had a decent year in 2015 and seemed ready for expansion. December cargo traffic was up 2 percent, year-over-year, to US$952 million revenue tonne kilometers (RTKs), returning the carrier to its two-year trend of demand growth. For the entire year, 2015 cargo traffic was up 5.4 percent to 10.6 billion RTKs, making it the largest air cargo carrier in Asia. However, excess capacity in the air cargo market made it difficult for carriers to get rates up to the level they expect during peak season.
In a general letter to the pilots, sent in December, the general manager of the air crew, Dominic Perret, called the labor stalemate a “lose-lose situation, frustrating for all of us.” The pilots countered that the growing workload is a threat to flight safety.