Dragonair today announced an average salary increase of 5 per cent for eligible Hong Kong ground staff in 2012.

The Company also announced that all eligible staff will receive a discretionary Chinese New Year Bonus, based on one-month's salary, to recognise the team's hard work and commitment and in sharing the success of the Company.

Dragonair Chief Executive Officer Patrick Yeung said: "Compared to 2010, this year has been more mixed, caused by the worsening global financial crisis, volatile markets, rising fuel costs and certainly rising levels of economic uncertainty. Weaker markets and lower confidence levels inevitably have an impact, for us and the whole sector."

"The Dragonair team continued to make a great effort. Our achievements this year were numerous, from keeping up with sales and market share, strengthening our crew force, enhancing operational efficiency and customer offerings to increasing flight frequency and capacity."

In thanking the good work of the Dragonair team, Mr Yeung stated, "The salary increase represents our direct recognition of staff's efforts and contribution for the year and coincides with the company's pay philosophy - balancing market conditions, business performance, economic outlook as well as maintaining the company's market competitiveness as against its ability in attracting and retaining talents."

"In what will doubtless be a very challenging year in 2012, we will need to focus on our strengths, particularly our position in the China market, which grows only more important for the airline and the Group."Mr. Yeung added.

"Our industry is by nature volatile. We will need to do all we can to balance our vulnerability to changing circumstances, including by keeping control of costs. Let us now look forward to making 2012 truly the Year of the Dragon."

Dragonair, an affiliate member of oneworld, is a Hong Kong-based airline operating a fleet of 32 passenger aircraft and serving 33 regional destinations, including 17 cities in Mainland China. Dragonair has been recognised for its product and service quality, and was voted for two consecutive years "World's Best Regional Airline" in the annual World Airline Survey run by Skytrax in 2010 and 2011. Dragonair is part of the Cathay Pacific Group, providing seamless connectivity for passengers to more than 140 cities around the globe.

Dragonair web site address: www.dragonair.com