Dragonair today announced an average salary increase of two per cent for 2009 for eligible Hong Kong-based ground staff in recognition of the team's hard work and commitment. Crew members will also receive a salary adjustment in accordance with their incremental salary scales.

Due to the impact of the current financial crisis on Dragonair's business, the airline will not be able to pay one month's salary as a discretionary Chinese New Year bonus to eligible staff. However, it will make a special payment of an amount equal to half a month's salary or HK$8,000, whichever is the greater, to all eligible staff. The special payment will be paid together with the December salary payment.

The financial crisis is having a clear impact at Dragonair, with a further softening of demand for both its passenger and cargo business.

"We have faced a very challenging operating environment in 2008, first with the impact of high fuel prices and now the current financial turmoil," said Dragonair Chief Executive Officer Kenny Tang. "The salary adjustment and special payment are recognition of the team's continued hard work and dedication during a difficult year. We will need to continue to work closely together as a team to get us through this difficult time and ensure the continued success of our airline."

Dragonair, an affiliate member of oneworld, is a Hong Kong-based airline operating a fleet of 32 passenger aircraft and four freighters serving 33 regional destinations, including 20 cities in Mainland China. Dragonair has been recognised for its product and service quality, and was voted "Best Regional Airline: SE Asia" in the annual World Airline Survey run by Skytrax in 2007/08. Dragonair is part of the Cathay Pacific Group, providing seamless connectivity for passengers to more than 100 cities around the globe.

Dragonair web site address: www.dragonair.com