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

(Reuters) - Hong Kong's Cathay Pacific Airways Ltd will cut around 6,000 jobs, or 18% of its workforce, and axe regional brand Cathay Dragon to help it weather the coronavirus 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 job cuts

Reuters October 21, 2020 00:05:18 IST
Cathay Pacific to cut 6,000 jobs, axe Cathay Dragon brand: SCMP

Cathay Pacific to cut 6000 jobs axe Cathay Dragon brand SCMP

(Reuters) - Hong Kong's Cathay Pacific Airways Ltd will cut around 6,000 jobs, or 18% of its workforce, and axe regional brand Cathay Dragon to help it weather the coronavirus 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 job cuts.

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 job cuts 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 job cuts at Cathay Pacific 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%.

(Reporting by Jamie Freed; Editing by Christian Schmollinger)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.