Dragonair Announces Salary Increment for 2010 and Special Payment for Eligible Staff

Dragonair today announced an average salary increase of 1.8 per cent for 2010 for the majority of eligible Hong Kong-based ground staff in recognition of the team's hard work and commitment during a very difficult year. Crew members will also receive a salary adjustment in accordance with their incremental salary scales.

Given the impact of the economic downturn on the airline's business, Dragonair is once again unable to pay the one month's salary as a discretionary Chinese New Year bonus to eligible staff. However, a special payment of an amount equal to half a month's salary or HK$8,000, whichever is the greater, will be made to these eligible staff. The special payment will be paid together with staff's December salary.

"The operating environment in 2009 proved to be a difficult one, with the impact of the financial crisis worsened by the Influenza A (H1N1) during the summer," said Dragonair Chief Executive Officer James Tong. "While our passenger and freight business has begun to pick up again, we are still some way behind pre-downturn levels and there is still no clear indication of any sustained recovery in our business taking place.

"However, despite the difficulties caused by the business downturn our team continued to make a great effort. The salary adjustment and special payment are recognition of the hard work and commitment our staff have shown during this challenging year.

"While the worst seems to be over, there is still a great deal of uncertainty and we don't know how long it will take to get our business back to sustainable levels. It's vital that we work together as a team to get through this difficult time and get our business back on its feet."

Dragonair, an affiliate member of oneworld, is a Hong Kong-based airline operating a fleet of 30 passenger aircraft and serving 29 regional destinations, including 17 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