Cathay Pacific, Hong Kong’s flagship airline, is the latest in announcing thousands of task cuts as it closes its regional airline as the pandemic continues to affect the need for air travel.
Cathay Pacific said Wednesday that it cut some 8,500 jobs, adding 5,300 in Hong Kong and another 2,600 vacancies because it brought a freeze on hires.
Total discounts make up 24% of the company’s workforce.
Its regional airline, Cathay Dragon, which operates in Asian countries, will also be closed on Wednesday, and will likely be purchased through Cathay Pacific and the cheap airline HK Express, which is owned by Cathay Pacific.
Executive pay cuts will continue next year, the company said.
H $2. 2 billion ($260 million). That’s the estimated cost of restructuring the company, the company said Wednesday. Cathay Pacific expects these measures to reduce the amount the company loses in the month, from $258 million to approximately $65 million according to the month.
Augustus Tang, CEO of Cathay Pacific, said in a statement: “The global pandemic continues to have a devastating effect on aviation and the fact is that we want to fundamentally restructure the organization to survive. “
The company only expects the call to return to pre-crisis levels in 2024, President Patrick Healy said.
Cathay Pacific has been at the forefront of the pandemic and the maximum serious crisis that has hit the aviation industry in decades. In the absence of domestic flights from its Hong Kong base, the airline was forced to take drastic action as soon as the coronavirus was razed. through parts of Asia before this year. After cutting 90% of its flights to mainland China in its first wave of drastic blockades, the airline encouraged its 27,000 workers to take three weeks off without pay. Rescued the $5 billion song this year through the Hong Kong government, however, the airline plans to operate at just 50% of its capacity for a 2021 maximum, Healy said, probably additional cuts along the way.
The International Air Transport Association has continually revised its estimates of overall industry profit losses this year and now expects air to lose $419 billion in profits by 2020.
Cathay Pacific Group Announces Corporate Restructuring (Cathay Pacific)
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I’m a senior Forbes journalist in London, covering Europe and the United States. Previously, I was a journalist for HuffPost UK, Press Association and one night
I’m a senior Forbes journalist in London, covering Europe and the United States. Previously, I was a journalist for HuffPost UK, the Press Association and a night reporter for The Guardian. I studied social anthropology at the London School of Economics, where I studied social anthropology at the London School of Economics. He was editor and editor of one of the university’s global business magazines, London Globalist. This took me to Goldsmiths, University of London, where I finished my master’s degree in journalism. Do you have a story? Contact us at isabel. togoh@forbes. com or stay with me on Twitter . I’m waiting for your answer.