Asian Airlines (Asiana), South Korea 's second largest airline carrier, canceled almost half of its domestic flights Monday due to the strike of unionized pilots.

Asiana's 81 of its 168 domestic passenger flights, and four of seven cargo flights were canceled for Monday as the strike of its unionized pilots entered the second day, but all 115 international flights were operating normally on Monday, reported South Korean Yonhap News Agency.

Asiana said it was to mobilize its non-union pilots to minimize further disruption.

"If the strike goes on until the end of the week, we will be hit by 12 billion won (11.65 million US dollars) worth of damage in air freight services, 10 billion won (9.7 million dollars) in international flights and 3 billion won in domestic flights," the company said.

The indefinite strike began at noon last Sunday after last- minute negotiations with the airline management fell through. The two sides resumed negotiations later but failed to reach an agreement on the 78 issues tabled by the union, said Yonhap.

The pilot union is demanding raising the mandatory retirement age to 58 and union members' participation in decisions concerning company promotions and disciplinary actions.

The management is thought to be close to agreeing to most demands for better working conditions, but are refusing to accept the demand for labor participation in the company's personnel and managerial policies, said Yonhap.

Hopes for a settlement of the dispute remain as both sides are continuing to engage in behind-the-scene negotiations.

Source: Xinhua