ExclusiveCathay Pacific staff leaving in new round of employee exits at airline hit by Hong Kong protests

At least three senior employees are to leave Cathay Pacific amid a fresh round of staff departures at the struggling airline, the Post has learned. Two general managers and the head of a business support unit were understood to have resigned, as industry analysts warned job cuts were inevitable at the carrier, which has been hit hard by the protests in Hong Kong. But insiders on Tuesday sought to play down the suggestion the exits were the start of a wider reshuffle of the carrier’s 27,000-strong workforce. It is understood the airline’s highly rated general manager of digital transformation Leslie Lu – whose team is central to the airline delivering efficiencies and cost savings – is leaving to pursue interests outside the company. Other changes include the departure of corporate affairs general manager Patrick Yu, as well as the head of one of its customer service teams, according to multiple sources. Two management trainees are also leaving. The general manager role is one rank down from the level of director, who form the company's top management team. Cathay Pacific declined to comment on personnel matters. Hong Kong’s largest airline said last month it would double down on cost discipline caused by financial pressures from more than six months of anti-government protests in the city. The impact has also hit future bookings, which are sharply down, causing the company to revise its budgets for 2020. CEO Augustus Tang Kin-wing said in late November that cost control measures would be brought in, under the backdrop of two profit warnings, that were “proportionate to the challenges we face”. The company did not allude to job cuts but has said previously that if the business impact from the civil unrest were to continue, it would have to ground aircraft and put staff on unpaid leave. On Tuesday, Cathay said inbound passengers for November shrank 46 per cent, compared with the same time last year, a fourth straight month of high double-digit percentile declines. Cathay carried 9 per cent fewer passengers in total at 2.62 million, as the results signalled the impact of the protests is likely to continue well into 2020. The exit of Lu, who spearheaded Cathay Pacific’s heavy investment in digital transformation, is seen as a blow. Cathay gives staff up to US$3,800 in one-off payment in place of bonus The digital unit has drawn up about 1,000 initiatives to help raise innovation at the airline, find cost savings and boost efficiency, part of a three-year HK$4 billion (US$510 million) restructuring of the business that was tied to job cuts in 2017. In 2017, Cathay Pacific culled 600 jobs at its Hong Kong headquarters, eliminating layers of management and phasing out traditional roles in favour of more digital-savvy staff. The cuts continued into 2018 when overseas airports and offices were streamlined, removing hundreds more roles. This summer, then-CEO Rupert Hogg, one of his deputies, and chairman John Slosar left the company after Cathay Pacific’s perceived inaction against staff who were supporting the protests in Hong Kong was heavily criticised by the Civil Aviation Administration of China. Meanwhile, Paul Loo Kar-pui, Cathay Pacific’s former customer and commercial chief, who launched his own consultancy after his ousting at the airline in August, is understood to be joining Hong Kong logistics company Lalamove. Loo and Lalamove did not immediately return requests for comment. Cathay Pacific records 46 per cent drop in passenger arrivals in November Battered by the protests sparked by the now-withdrawn extradition bill, the airline is shrinking its business – in its own words, “for the first time in a long while” – by cutting seat capacity on its flights in 2020 by 1.4 per cent, instead of increasing it by 3.1 per cent. The airline has also delayed delivery of four aircraft and sped up the retirement of two older planes, releasing 10 in total and leaving it next year with 17 new jets. The airline also scrapped year-end bonuses, offering up to HK$30,000 (US$3,850) one-off payments to most staff instead. Aviation consultancy Endau Analytics pencilled in the possibility of 1,000 job cuts at Cathay. Transportation analyst Luya You from Bocom International said that job cuts were “becoming more likely” if natural employee turnover was not sufficient by next year, as the business contracted for the first time in six years. “Given the fact that this [in their own words] is the first year since many where the airline is shrinking, not expanding, their level of staff would most likely need some short-term adjustments if they want to maintain high efficiency and keep trimming costs,” she said. Hometown rival Hong Kong Airlines is faring even worse and earlier this month narrowly avoided being shut down by the authorities over its lack of cash. It raised fresh funds but had several of its planes seized by Hong Kong International Airport after failing to pay parking fees.

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} At least three senior posts vacated at Hong Kong’s flag carrier, as analysts warn of future job cuts Insiders play down suggestion the exits are part of a wider staff reorganisation

At least three senior posts vacated at Hong Kong’s flag carrier, as analysts warn of future job cuts

Insiders play down suggestion the exits are part of a wider staff reorganisation