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Cathay Pacific is to revamp its pay and perks package for new pilots, offering salaries pegged closer to productivity so those who fly more will take home more. According to an internal memo, up to 30% of a pilot’s salary will be variable and tied to the number of hours flown, starting from Dec 1. The current variable portion is only 10%. The change creates “a close link between hours flown and take-home pay”, said the memo from the director in charge of flight operations, Chris Kempis. At present, the airline pays pilots regardless of hours clocked and some have been known to fly 50 to 150 hours less than the company’s maximum 900 hours per year. Kempis said the changes would help support the long-term viability of the Cathay Group. <br/>

British Airways has offloaded GBP4.4b in pension liabilities to an insurance company in a bid to cap its pension responsibilities. Legal & General will effectively take over the liabilities for 22,000 British Airways pensioners in the largest deal of its kind in the UK. The aim of the “bulk annuity” deal is to protect BA from higher pension costs in future, which could happen because of poor investment returns or unexpected increases in life expectancy. For years, BA has struggled to shed its reputation as a company with a huge and costly pension scheme with an airline attached. The BA pensioners affected are in the Airways Pension Scheme (APS) which, according to the 2017 annual report, had total liabilities of GBP7.7b. Virginia Holmes, chair of the trustee board for APS, said the deal would reduce risk and increase security for members. <br/>