The crumbling state of the Aviation Industry has left multiple carriers struggling to find
a way out, struggling to muster up the funders to ensure their survival, and struggling to
determine just what will get them through this global pandemic!
The Cathay Pacific Group has just been one of the many that's been struggling and today
the carrier announced a major restructuring plan that’ll see the removal of thousands
of jobs, the adjustment of one of the group's airlines and more.
Cathay Pacific is currently losing HKD 1.5 to 2 billion every single month, the restructuring
plan has been initiated with immediate effect in order to bring those losses down significantly.
The airline is quoted as saying they want to reduce the losses by around 500 million
HKD per month, this though won't come overnight but it is something they want to happen sooner
rather than later.
As part of this, they are going to cut approximately 8,500 positions across their entire group.
This essentially means a 1/4 of jobs within the group will disappear as Cathay said that
8,500 positions equate to 24% of the established headcount within the group.
On top of this, they plan on freezing recruitment.
The thing is though through freezing recruitment and the natural departure and need for new
positions they will only need to cut just under 6,000 actual employees from their group
which will be broken up with 5,300 Hong Kong-based employees and finally 600 employees that are
located in other areas in the world.
Executives will also take pay cuts throughout 2021 and there will be no salary increases
or said bonuses for 2020 across all keyboard members to help with the ongoing crisis.
Moving along to the main story of today though and that's the closure of Cathay Dragon with
immediate effect, something that makes logical sense given the current crumbling state of
Cathay Pacific.
Continuing with this brand could’ve had even more disastrous effects on the group.
However, with Cathay Dragon currently being a part of the Cathay Pacific group with of
course includes the main carrier and then HK Express the airline while will be disappearing
will be merged into these two with the group currently in the process of seeking regulatory
approval for the services that the airline operated.
It would mean that HK Express would likely take over the short-haul service whereas,
for the mid to longer operations Cathay Pacific would take them over.
Cathay Dragon is relatively new though, you might have previously known it as Dragonair
before Cathay Pacific rebranded it only 4 years back.
It is known for sharing the same livery as Cathay Pacific but notably with a red colour
scheme.
This is the main way you can differentiate the two if you were say planespotting at an
airport.
Mr Tang, who is the Cathay Pacific Chief Executive Officer said Over its 35 years, Cathay Dragon
has earned a well-deserved reputation for excellence, thanks to its outstanding service
and distinct hospitality, delivered by a remarkable team.
Adding I believe in this plan and I know we will prevail.
We remain absolutely confident in the long-term future of Cathay Pacific, the Hong Kong aviation
hub and the critical role Hong Kong will play in the Greater Bay Area and beyond.
Cathay Dragon flew just over 40 aircraft and operated with a full Airbus fleet of A320
family aircraft and the A330.
It was mostly seen throughout Asia, whereas, as we know the difference with Cathay Pacific
they’re more of a global airline thats featured in all corners of the globe.
Cathay Dragon could be seen in the likes of China, Japan, Indonesia, and more.
Thankfully for an airline like Cathay Dragon while naturally there will be job cuts there
is Cathay Pacific, part of the same group, and HK Express that’ll absorb it up rather
than say see the airline completely disappear.
Of course, it will not fly with your classic Cathay Dragon branding, however, it will somewhat
continue to live on with the knowledge specific routes they were flying will continue on.
From me and I know everyone watching to those within the Cathay Group now facing severe
cuts and watching this video potentially we wish you all the very best through these incredibly
tricky times.