The new medical policy, which covers 10,000 Hong Kong-based Cathay staff and comes into effect on Jan 1, had drawn fierce protests from the Flight Attendants Union who objected to staff being asked to pay for doctor and specialist consultations.

The previous policy did not require staff to pay to see a doctor.

About 500 cabin crew protested outside the carrier's office in downtown Hong Kong last week, but the union pulled back from an earlier threat to launch strike action over the new policy.

Cathay said on Monday it had amended the policy to allow staff and their dependents to make 10 free visits through 2008 before being asked to contribute, as suggested by the union.

After that, junior employees must pay HK$30 (S$5.60) to see a doctor and HK$50 for a specialist, it said in a statement faxed to media.

Senior staff would pay HK$50 for consultations with a doctor, and HK$100 to see a specialist.

The Hong Kong-based carrier had planned to announce the amendment at a scheduled meeting with the union on Monday, but the group's representatives failed to show up, the statement said.

'In view of public anxiety about possible disruption to their year-end travel plans and the need to inform the rest of Cathay Pacific's employees covered by the scheme, the company had no choice but to announce the new arrangements,' the statement said.

Cathay had defended the policy saying it offered better coverage for staff, including higher limits, as well as protection for financial loss due to serious illness.

The airline said it would cost the company an extra 10 percent more than the previous policy.

Phone calls to the union's head office rang unanswered Monday evening. -- AP