Cathay Pacific reduces the staff by a quarter and closes a regional airline

Created on 04.11.2020 09:10

Hong Kong airline Cathay Pacific Airways Ltd. has announced its intention to get fired 8.5 thousand employees, including 5.3 thousand persons, whom working in Hong Kong. Layoffs will affect approximately 24% of the staff, according to Interfax.

In addition, regional carrier Cathay Dragon terminated its operations since Wednesday. Cathay Dragon flights on several routes will be operated by Cathay Pacific and its budget subsidiary HK Expresssubject after approval by the regulatory. The restructuring plan would cost the company approximately HK $ 2.2 billion ($ 283.8 million). Cathay Pacific will continue reducing executive salaries in next year. At the same time, there will be no salary increase in 2021 and the payment of bonuses to all employees this year.

These measures would allow Cathay Pacific to reduce monthly operating costs up to HK $ 500 million ($ 64.5 million) from current $ 1.5-2 billion, said Augustus Tan, the airline's Chief Executive Director.

In the first half of the year, Cathay Pacific has got a record-breaking net loss due to air restrictions amid the coronavirus pandemic, their revenue fell by 48.3% - $ 27.67 billion.

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