Staff have been warned more roles will be slashed as it shrinks operations. The company said it hoped to achieve that through natural turnover, transferring pilots to other airlines and outsourcing “non-critical functions”.

Hong Kong Airlines to cut hundreds of jobs as finances worsen

Airlines across Asia and beyond have been rocked by the spread of the deadly pathogen, which originated in the central Chinese city of Wuhan, forcing the mass cancellation of flights and requests for staff to take unpaid leave.

In a letter to staff, Hou said: “This rapidly changing situation is of grave concern and a serious threat to Hong Kong Airlines’ business.

“To ensure our survival, we have to adopt vigorous measures to mitigate these ongoing challenges.”

As part of its fight for survival, the airline, which is headquartered in Tung Chung, appealed to all staff “to help the company during this critical period.”

Hong Kong-based ground staff are being asked to take a minimum of two weeks’ unpaid leave per month or work a three-day week from February 17 until June 30. A separate scheme would be offered to cabin crew and pilots.

The airline said it would slash its daily operations from 82 flights to just 30, from February 11 into March.

With more bad news expected for the industry in the usually profitable summer, Hou said: “As uncertainty looms with the evolving nature of this global issue, weak travel demand is likely to continue into the summer season and we need to take further action to stay afloat.”

He added: “There has never been a more challenging time in Hong Kong Airlines’ history as of now.

“These decisions are difficult but had to be made to keep the airline alive. Change is imperative to Hong Kong Airlines’ future.”

That change, however, particularly the reduced work schedule, is a bitter pill to swallow for those affected.

“Everybody is p****d off with the pay cuts if we work 3 days a week. The pay cuts are more than the leave we are taking,” one employee, who wished to remain anonymous, said.

According to an internal memo seen by the Post, the three-day schedule for office staff equates to a 50 per cent pay cut for deputy directors, 40 per cent for managers and above, and 30 per cent for assistant managers and below.

While specifics are less clear in regard to aircrews, they are no less concerned.

“With [Hou’s] letter, I have no idea if I’m going to be fired or not. For our airline, it’s all about your connections,” a pilot, who spoke on condition of anonymity, said.

“Potentially losing my job, the coronavirus situation, and many pilots in the same situation, I’m not sure what to do,” he said, adding he believed the airline may never recover.

As Hong Kong’s third-largest airline, it narrowly avoided being closed by the government after receiving a last-minute bailout before Christmas.

Government allows Hong Kong Airlines to keep flying after rescue cash found

In a statement, Hong Kong’s Civil Aviation Department (CAD) said it had “been liaising with Hong Kong Airlines on its manpower reorganisation plan, and will continue to follow up as well as closely monitor to ensure it is in compliance with the above mentioned civil aviation laws and regulations and ensure aviation safety.”

A spokeswoman for the Transport and Housing Bureau (THB), meanwhile, said they have told the airline to be mindful of its employees’ interests.

“We have reminded the airline of its obligation to compensate the affected employees in accordance with the terms of employment and the relevant labour laws,” she said.

The job cuts at Hong Kong Airlines come on the day its final United States flight, from Los Angeles, returns to Hong Kong. Just one long-haul route remains – to Vancouver, which will be dropped after February 10.

The airline will suspend 10 routes and gradually reduce flights on a further 15 up to early March, amounting to the axing of an estimated 128 flights a week.

HKA has already cut 214 mainland Chinese flights between January 30 and February 11.

“All of these recent events adds pressure for Hong Kong Airlines after the resolution of its last exchange with the Air Transport Licensing Authority over its liquidity position,” David Yu, a finance professor at New York University Shanghai, said, referencing a November meeting in which the licensing body had taken the airline to task for its woeful economic performance.

Cathay Pacific asks its 27,000 employees to take three weeks unpaid leave

The bleak outlook for Hong Kong Airlines is in stark contrast to Cathay Pacific, which is backed by the deep pockets of conglomerate Swire Pacific and has the support of another significant shareholder, mainland China's state-owned national carrier, Air China.

Cathay Pacific on Wednesday appealed to all of its 27,000 staff to take three weeks of unpaid leave to help the company save money.

The voluntary measure highlighted the impact on the industry of the coronavirus outbreak, which the company said was “as grave” as the 2009 financial crisis.