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Hong Kong court rules against Cathay Pacific in two costly cases
September 26, 2012 / 12:40 PM / in 5 years

Hong Kong court rules against Cathay Pacific in two costly cases

HONG KONG, Sept 26 (Reuters) - Hong Kong’s Court of Final Appeal ruled against Cathay Pacific Airways in two cases regarding its air crew on Wednesday that could end up costing the airline operator hundreds of millions of dollars.

The first case involved flight attendants who claimed their holiday pay should have included additional commissions and allowances. The second case involved a group of pilots known as the ‘49ers’ who were fired after taking part in union activities.

The dispute with the cabin crew involved more than 4,000 flight attendants, according to the Cathay Pacific Airways Flight Attendants Union, and could cost the airline operator about HKD$100 million in back pay, the South China Morning Post reported.

Cathay has also been ordered by the Court to pay the pilots one month’s salary.

“We respect the judgment of the Court of Final Appeal. Our legal team is studying the respective rulings and the company will consider the necessary steps in their detailed applications,” Cathay said in a statement.

Shares of Cathay Pacific closed down 1.24 percent on Wednesday at HKD$12.80. The world’s largest air freight carrier posted its worst first-half loss since 2003 last month, hurt by high fuel costs, weak cargo demand and fewer premium passengers. (Reporting by Clare Baldwin; Editing by Louise Heavens)

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