China Eastern Airlines Corp, which will receive a 7 billion yuan (HK$7.9 billion) government bailout, plans to cut pay for its middle to senior managers up to 30 per cent. In response to potentially huge deficits from hedging losses and slowing demand last year, the Shanghai-based airline was studying a plan to cut wages 10 to 30 per cent, company secretary Lou Zhuping said yesterday. Last month, the airline announced a management reshuffle, including replacement of its chairman by Liu Xiaoyong, former chairman of China Southern Airlines. The new appointment will take effect after a shareholders' meeting on February 8. Cost savings from the wage cut would be insignificant, but it would be a gesture to show that management was willing to bear the pain to boost staff morale, Mr Lou said. China Southern Airlines cut its management's pay 10 per cent last July.