Eighteen flights have been cancelled between China and the Republic of Korea (ROK) as of Friday as the striking at Korean Air came to its second day, the airline company's Shanghai office said.

The 18 flights, which account for 30 percent of Korean Air's total flights in China, include some regular passenger routes between Shanghai to Kwangju and Busan, Beijing to Taegu, Qingdao and Xi'an to Busan.

Korean Air had to cancel 63 percent of all flights scheduled for Friday, up from 53 percent on Thursday. Both domestic and international passenger services as well as cargo flights have been affected.

Hundreds of Korean Air pilots began striking Thursday after their demand for higher payment failed to get full approval from the company's management.

The crew demand a 6.5 percent wage increase and a 50 percent rise in bonuses. However, the management only agreed to offering a 2.5 percent wage hike.

According to the government, a strike would cost Korean Air 18.7 billion won (US$18.1 million) a day. ROK may also suffer 50 billion won (US$48.5 million) in lost export revenues a day because of disrupted air cargo services.

More than 44,000 passengers and the delivery of cargo worth US$193.6 million every day are being delayed, the airline estimated.

Korean Air has been ranked among the top three freight carriers in the world since 1993.

The ROK government warned it will use its emergency powers to end the labor strike at Korean Air.

Pilots and the management will hold their first round of talks Friday since the two-day long walkout began.

In summer this year, the ROK government has used its arbitration right to end the strike of unionized pilots at Asian Airlines, the smaller one of the two major carriers in the nation.

(Xinhua News Agency December 9, 2005)