Another airline flying to China closes

Release time:2020-10-22 Publisher:Lanka Voice

Hong Kong 's Cathay Pacific Airways announced yesterday that it would close with regional airline Cathay Dragon to cut 8,500 jobs due to the disruption of flights due to the covid-19 epidemic.
About 5,300 employees in Hong Kong and another 600 are likely to lose their jobs, and 2,600 unfilled positions will be cut.
Cathay Pacific said in a statement that the job cuts would make up about 24 percent of the company's workforce.
Accordingly, destinations in several other Asian countries, mainly China, have been temporarily suspended from yesterday (21).
"This global epidemic continues to have a devastating impact on airlines, and the truth is we need to restructure fundamentally to survive," Cathay Pacific CEO Augustus Tang said in a statement.
The airline says it will close its regional airline, Cathay Dragon, on Wednesday.
The restructuring aims to reduce Cathay Pacific's waste to Hong Kong $ 500 million (US $ 64.5 million) a month.
That would reduce Hong Kong from $ 1.5 billion (US $ 193.5 million) to US $ 2 billion (US $ 258 million) at present, the company said.
The plan will cost Hong Kong $ 2.2 billion (US $ 283.8 million).
Cathay Pacific says executive pay cuts will continue throughout 2021, with no pay raises for 2021 or bonuses for all Hong Kong employees this year.
Staff will be offered a volunteer leave plan early next year.
At a news conference, Patrick Healy, president of Cathay Pacific Airways, predicted that air passengers would return to normal levels after the pre-epidemic 2024 is over.
“The future is very uncertain. The crisis is deepening, and a situation of recovery has emerged more than anyone thought a few months ago.
Healy said the airline is "100% dependent on borders" because the Cathay Pacific region is more affected than its peers.

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