Cathay Pacific is upping its already generous monthly bonuses for senior pilots in an effort to slow the pace of resignations. An entry-level Captain at Cathay earns over US$113,000 annually but will also now pick up more than $4,000 every month in bonuses, with some tasty extras thrown in, such as allowances to help cover the kid’s school fees. But even with this kind of money, Cathay Pacific is having trouble holding onto its pilots.
Cathay boosts monthly allowances to help retain senior pilots
According to Bloomberg News, Cathay Pacific is dealing with a pilot exodus, and to counter the trend is increasing monthly allowances for Level 2 First Officers and all Captains. Monthly allowances for Level 2 First Officers are increasing from $2,800 to more than $3,300. A Level 1 Captain will see their monthly allowance increase from around $3,800 to more than $4,000.
Working up the ranks, a Level 2 Captain will enjoy an increase in their monthly allowance from around $3,800 to more than $4,300. Level 3 and Level 4 Captains will see their $4,200 monthly allowance shoot up to nearly $4,600. Monthly allowances for Second Officers and Level 1 First Officers will remain unchanged – giving a clear idea of where Cathay Pacific is feeling the pilot shortages the most.
Cathay Pacific is facing a pilot shortage, particularly among its senior ranks. Photo: Airbus
Generous pay can’t offset the challenges that come with working for Cathay Pacific
Annual base salaries at Cathay Pacific start at about $49,000 for Level 1 Second Officers and run through to about $164,000 for Level 4 Captains. In addition to increasing monthly allowances for its more senior pilots, Cathay Pacific allows all of its pilots to claim approximately $13,000 per child (up to a maximum of three children) per year to cover school fees, whether in Hong Kong or abroad. With a high number of expatriate pilots normally on the books at Cathay Pacific, the cost of school fees, particularly boarding fees, can be a severe impost.
Cathay Pacific is flying less than 2% of its pre-pandemic capacity, and the airline’s ongoing challenges generate considerable aviation news. Bloomberg notes generous pay doesn’t entirely offset the lengthy spells in quarantine and closed-loop shifts that keep them on the road for weeks. The news outlet unsurprisingly says pilot morale at Cathay Pacific is low.
In addition to their base pay and monthly allowances, Cathay’s pilots are also eligible for hourly flight pay. But that flight pay is contingent on pilots hitting a minimum amount of flying hours every month, which owing to severely limited operations, most pilots are not.
Cathay Pacific is flying less than 2% of its pre-pandemic capacity. Photo: Cathay Pacific.
Holding onto experienced pilots
The high number of pilots voluntarily leaving Cathay Pacific comes on top of the involuntary layoffs earlier in the pandemic. But towards the end of 2021, alarm bells began ringing at Cathay Pacific’s HQ about the pilot exodus, forcing the airline to take countermeasures such as boosting monthly allowances. All up, pilot numbers at Cathay shrunk by about 400 over 2021. Cathay finished last year with about 2,700 pilots on the books but has said it plans to hire several hundred more this year.
However, hiring a batch of Second Officers is no match for losing swathes of experienced Captains from the ranks. When Cathay Pacific eventually does get its mojo back, they’ll need those Captains. As this week’s increase in monthly allowances indicates, Cathay Pacific is prepared to pay to retain them.
Source: Bloomberg
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