The company said that the decision, which was made on Oct 24, was taken to try and rein in costs, the airline's internal magazine reported.

The move follows dismal passenger numbers in Sept caused by slowing demand for business and first class travel.

But chief executive Tony Tyler remained bullish about the long-term prospects for the airline.

'I remain unashamedly optimistic about the future of aviation in Asia - just think of the potential in China and India alone,' Mr Tyler said, according to the magazine.

'There is no place I'd rather be than Asia to ride out this current storm. And there is no other place in Asia better than Hong Kong to do so.'

The magazine also said Cathay would remove five of its Boeing 777-200 aircraft from operation over the next two years, while the lease on two Dragonair Airbus A330-300s would not be renewed in June. -- AFP