Advertisement
Exclusive | Coronavirus: Cathay Pacific eyes ‘structural change’ to see the Hong Kong carrier through pandemic crisis and its aftermath
- Routes and headcount face the chop during resizing of the business, analysts predict
- Hong Kong’s flag carrier says it is modelling ‘varying degrees of structural change’ to protect itself from ‘catastrophic impact’ of Covid-19
Reading Time:3 minutes
Why you can trust SCMP
Cathay Pacific is looking at “structural change” as it investigates how to downscale its business in the wake of the coronavirus pandemic, the Post has learned.
Hong Kong’s flag carrier is mulling scenarios that could reduce staff headcount, routes served and planes flown, as well as the possible consolidation of its airline brands, in drastic steps that would mirror those taken by rivals in recent weeks.
“We are currently working with colleagues from across the airline to model varying degrees of structural change that may be required to preserve our business and our collective future from the catastrophic impact of Covid-19,” the airline told its pilots, who were asked to meet management about potential changes.
Advertisement
“No firm direction has yet been set,” the letter emphasised.
Advertisement
As the carrier extended the cancellation of most passenger flights until the end of June, sources said a fresh round of effective pay cuts was set to be rolled out, with around four more weeks of unpaid leave suggested.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x