Global airlines cut capacity, staff, costs due to COVID-19

HK Express (UO, Hong Kong Int'l) will relaunch scheduled flights on August 2, 2020, more than four months after it suspended all operations due to the COVID-19 pandemic.

The low-cost carrier said that its network would be planned with travel restrictions imposed around the Asia-Pacific region in mind. However, it has yet to announce the details of its post-pandemic schedule.

HK Express, a subsidiary of Cathay Pacific (CX, Hong Kong Int'l), operates a total of 24 narrowbody aircraft, including eight A320-200s, five A320-200Ns, and eleven A321-200s. However, it could see its scope of operations expand in the post-COVID world, as Cathay Pacific is reportedly considering merging its regional subsidiary Cathay Dragon (KA, Hong Kong Int'l) into either the mainline or HK Express to focus on a dual-, rather than triple-, brand strategy for the passenger market.

Cathay Pacific (CX, Hong Kong Int'l) has secured the approval of more than 90% of its employees for an unpaid leave scheme as it struggles to cut short-term costs, the South China Morning Post reported.

The scheme is part of a second round of cost-saving measures at the beleaguered airline and its subsidiaries, which include regional carrier Cathay Dragon, low-cost unit HK Express, and the cargo carrier Air Hong Kong, as they contend with what the management warned will be a "slow" recovery from the impact of the coronavirus pandemic.

In an initial round of unpaid leave, covering the period from March to June, around 80% of staff agreed to pay cuts. This next stage covers a further six months, from July to the end of the year.

“I am truly humbled to see more than 90% of employees across the Cathay group take part in this scheme, an even higher percentage than in our first Special Leave Scheme,” said Augustus Tang, Cathay's chief executive, in an internal memo. “There is clearly...

Cathay Pacific (CX, Hong Kong Int'l) is planning to end "many" of its cargo-only flights operated with passenger aircraft as the surge in demand and yields on the cargo market, driven by the demand for personal protective equipment and the drop in capacity, is coming to an end, the South China Morning Post has reported.

"Cargo has been tapering off, and as a result, there will be many cancellations of cargo-only passenger aircraft flights, as the commercial decisions are made closer to the time of the flight," the carrier said in an internal memo.

In a follow-up statement, the airline clarified that it planned to continue operating its fleet of dedicated freighters at high utilisation rates. But, it would gradually wean off using passenger aircraft for cargo-only services.

Cathay Pacific is also re-evaluating its earlier plan to convert four passenger B777 aircraft into makeshift freighters. Under the current circumstances, the airline is likely to only convert two jets. Such a conversion is a more permanent step than the straightforward deployment of passenger aircraft on cargo-only...