Cathay, which employs 5,500 flight attendants, is demanding employees fly an extra eight hours a month to earn a 3.5-per cent rise.

Other options are to work the same number of hours for the same money or take a voluntary severance package, Hong Kong's `South China Morning Post' reported.

As a form of industrial action against the airline that promises `warmth and friendly service straight from the heart,' cabin crew are considering refusing to smile at passengers for one hour on each flight, the paper reports.

"Our contracts do not say we have to smile," said Becky Kwan Siu-wa, who chairs the flight attendants' union representing three-quarters of cabin crew, adding, other types of action were also being considered.

The union charges Cathay, which recorded a 175-million HK dollar loss till the end ofJune last year - its first in 35 years - is seeking to exploit the economic downturn.

Responding to the proposed agitation, Cathay spokeswoman Quince Chong Wai-yan said: "it's not fair to the passengers. Our company is service-oriented. Since they're in the the service industry, they should understand what's good service" .