The Cathay Pacific Group will cease the operations of its regional subsidiary, Cathay Dragon, and reduce workforce and passenger capacity as it weathers the Covid-19 storm.
As part of corporate restructuring, the Cathay Pacific Group, which includes long-haul airline Cathay Pacific, regional carrier Cathay Dragon, and low-cost airline Hong Kong Express, will reduce its workforce by approximately 8,500 staff, representing 24% of its established headcount, and consolidate its network in order to meet its responsibilities to Hong Kong as an aviation hub, and to its customers.
It is expected that Cathay Dragon’s routes, which are mainly centred on China and Southeast Asia, will be absorbed by Cathay Pacific and Hong Kong Express.
“We have to do this to protect as many jobs as possible, and meet our responsibilities to the Hong Kong aviation hub and our customers. We have taken every possible action to avoid job losses up to this point. We have scaled back capacity to match demand, deferred new aircraft deliveries, suspended non-essential spend, implemented a recruitment freeze, executive pay cuts, and two rounds of Special Leave Schemes. We have studied multiple scenarios and have adopted the most responsible approach to retain as many jobs as possible.”
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