Cathay Pacific (CX, Hong Kong International) is asking its 27,000-strong workforce to take three weeks unpaid leave between March and June as the Hong Kong-based carrier struggles to manage the impact of the Coronavirus on its operations, The South China Morning Post newspaper reported. The virus has now killed more than 560 people and infected 28,000 in China.
“I am appealing to each and every one of you to help,” Chief Executive Officer (CEO) Augustus Tang said in a video to staff, adding that the situation the airline is facing was “just as grave” as the global financial crisis in 2009. “Preserving our cash is now key to protecting our business,” he added.
The last time Cathay Pacific implemented its unpaid leave scheme was in 2009, and the last time it made extensive network cuts was during the Sars outbreak in 2003. It grounded 22 aircraft and cut capacity by 45% at the time.
Earlier this week, Cathay Pacific and its subsidiary Cathay Dragon (Hong Kong International), announced plans to cut about 90% of their flights to mainland China until the end of March, as well as other network cuts, as demand plummets. The total impact across the two airlines' networks will be a reduction in capacity of about 30%.
Tang also said in a video that the recent Lunar New Year holiday, normally one of the most profitable times of the year, was “one of the most difficult...we have ever had.”
