Summer of Discontent

It's summer in Hong Kong, and that means steam-bath humidity, threatening typhoonsand labor problems at Cathay Pacific, the territory's only major airline. This year the labor row has turned into a dogfight between the company and its 1,600 pilots, and neither side has yet scored a kill. Travelers around Asia have already been inconvenienced by the labor dispute, and both sidesbut mainly managementhave been increasing the acrimony as steadily as the Hong Kong temperature has been rising.

The squabble began two weeks ago when Cathay's pilots rejected a new three-year contract offering them raises of up to 10.5%....