Pilots of two Cathay carriers have proposed halving their salaries to avoid losing their jobs altogether, as they face the prospect of mass layoffs of up to 6,800 employees.

The arrangement, dubbed “Half Pay Leave Scheme,” can last till the end of next year, in the suggestion made by the Hong Kong Aircrew Officers Association, which represents pilots of Cathay Pacific and its sister airline Cathay Dragon, according to a source.

It may save the beleaguered Cathay HK$145 million (US$18.7 million), or 20% of its annual salary expenditure. No further details were available.

The union also suggested extending the current arrangement of voluntary no-pay leave for another 12 months, saving the company up to 60% of salary expenses, the source said.

Other proposals included allowing pilots to switch positions within the company and providing incentives for employees to voluntarily leave their jobs, the source said.

The ongoing COVID-19 pandemic has dealt a heavy blow to the travel industry. Cathay Pacific issued a profit warning in July as it expected a “substantial loss” for the first half of the year.

As many as 6,800 employees — 1,200 pilots, 5,000 other crew members and 600 ground staffers — could be made redundant, according to a Cathay Pacific management executive who did not want to be named.

The estimation was based on the official figure that 40% of flights on Cathay Pacific, Cathay Dragon and budget carrier HK Express were grounded.

Cathay Pacific confirmed to Apple Daily that it was in touch with the union and would maintain an open attitude toward all proposals. It had plans to explain the airline’s direction to employees in the fourth quarter.

Earlier this month, Cathay Pacific announced that it would not apply for further government employment subsidies, sparking fears of massive job cuts. However, subsidiary firms including HK Express would continue to apply for support.

Cathay Pacific and Cathay Dragon in July offered older pilots early retirement and stopped receiving applications in mid-August. However, two sources said the application number was low. One of them said fewer than 80 people had applied.

A spokesperson for Cathay Pacific said reception of the early retirement plan was within expectations but did not disclose the number.

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