You are here: Home » International » News » Companies
Business Standard

Cathay Pacific to cut 6,000 jobs, axe Cathay Dragon brand: Report

The South China Morning Post said the airline was expected to announce the job cuts on Wednesday, adding the figure had been reduced from 8,000 layoffs after government intervention

Cathay Pacific | job cuts


Hong Kong carrier Cathay Pacific
Hong Kong carrier Cathay Pacific

Hong Kong's Airways Ltd will cut around 6,000 jobs, or 18% of its workforce, and axe regional brand Cathay Dragon to help it weather the pandemic, the South China Morning Post reported on Tuesday, citing sources.

The airline said in June it was reviewing its strategy in light of the travel downturn, with "tough decisions" to be announced during the fourth quarter and analysts expected it would announce major

That month the Hong Kong government also led a $5 billion rescue package for the airline, which has been burning through around HK$1.5 billion ($193.55 million) to HK$2 billion of cash a month.

The South China Morning Post said the airline was expected to announce the on Wednesday, adding the figure had been reduced from 8,000 layoffs after government intervention.

The newspaper, citing unidentified sources, said the airline will sacrifice Cathay Dragon but staff and resources of the two airlines would be merged. Cathay declined to comment.

The airline last month said it would not apply for further government employment subsidies for its main business units, allowing it to make at and Cathay Dragon, though not at budget carrier HK Express.

Cathay had refrained from major job cuts but Singapore Airlines Ltd has announced plans to cut around 20% of positions, while Australia's Qantas Airways Ltd has said it will cut nearly 30% of its pre-pandemic staff.

Cathay has sent around 40% of its passenger fleet to less humid locations outside Hong Kong for storage. On Monday, the airline said it expected to operate less than 50% of its pre-pandemic passenger flight capacity in 2021.

Passenger numbers in September fell 98.1% compared with a year earlier due to border closures, though cargo carriage was down by only 36.6%.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 21 2020. 02:20 IST