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

Hong Kong carriers to vie for Cathay Dragon routes

Cathay Pacific to cut workforce by 24%, slay Cathay Dragon

Cathay Pacific (CX, Hong Kong Int'l) has announced it will cut 5,900 jobs and halt operations at its full-service regional subsidiary Cathay Dragon (KA, Hong Kong Int'l) with immediate effect. Overall, 8,500 positions will be eliminated, 24% of its normal headcount, including 2,600 roles unfilled due to a covid-era hiring freeze, the company outlined in a stock exchange filing on October 21.

Hong Kong Int'l-based pilots and cabin crew will also be asked to agree to changes in conditions in their contracts “to match remuneration more closely to productivity and to enhance market competitiveness,” the carrier said.

The restructuring will cost around HKD2.2 billion Hong Kong dollars (USD284 million), it added. The airline is bleeding HKD1.5-2 billion (USD194-258 million) in cash per month, it said, and the restructuring is designed to reduce this by HKD500 million (USD64.5 million) a month in 2021.

Other cash preservation measures include the suspension of non-essential spending, the deferral of aircraft deliveries, and executive pay cuts. Even under the most optimistic scenario, Cathay expects to operate...

Hong Kong and Singapore announce "milestone" air bubble

Cathay Pacific (CX, Hong Kong Int'l) has welcomed a new air travel bubble between Hong Kong Int'l and Singapore Changi as “a milestone development” and an important first step in facilitating the resumption of regular air travel between the two Asian financial centres.

Singapore and Hong Kong on October 15, 2020, announced they had reached a preliminary agreement to establish an air travel bubble between them, allowing travellers of all kinds to bypass quarantine.

Reacting to the announcement, Cathay Pacific Chief Customer and Commercial Officer Ronald Lam said: “Singapore is a popular destination for Hong Kong travellers for both leisure and business purposes. We are grateful to the authorities in Hong Kong and Singapore for reaching this agreement, which importantly will enable passengers travelling between the two cities to do so without any restrictions on the purpose of their travel, nor with any quarantine requirements for those with negative test results”. He said the airline looked forward to receiving further information regarding the details of its implementation.

Announcing the decision, Hong Kong’s...

Air China Cargo to establish Chongqing branch