Cathay Pacific pilots reject pay offer

Cathay Pacific Airways says its pilots have rejected its latest pay offer, setting the stage for possible flight disruptions next week.

The Hong Kong-based airline says it's prepared to charter aircraft and rebook passengers on other carriers if the pilots go ahead with threatened action on Tuesday.

Tony Tyler, Cathay Pacific's director of corporate development, says the airline has offered pay rises of up to 10.5%, in addition to extra overtime pay and scheduling improvements.

The airline had earlier offered increases of up to 9%.It says the pilots are demanding pay rises of up to 32%.

The pilots' union had originally planned to take action on Sunday, but delayed its plan for two days to avoid disruptions during the long weekend holidays. Monday is a public holiday in Hong Kong to mark the fourth anniversary of the territory's return to Chinese rule.