Cathay Pacific will tap government fund to help pay 27,000 employees in Hong Kong
- Airline also warns of ‘substantially reduced’ capacity over the summer
- Carrier is still waiting for government to lift travel restrictions and quarantine measures
The airline also revealed on Friday it would increase passenger flights in July to the highest level in four months, but the number would still fall below 10 per cent of its regular service before the pandemic hit.
The carrier’s revenue evaporated as Covid-19 brought global travel to a halt, taking the company to the brink of collapse before the Hong Kong government agreed to provide a massive bailout.
“After careful consideration the Cathay Pacific Group of companies have made an application [for the wage scheme] today,” the airline said. The first phase of the subsidy rune June to August.
The airline had 33,000 employees but more than 27,000 work in Hong Kong and would be eligible for the subsidy, sources said.
01:29
Hong Kong government to bail out Cathay Pacific with HK$30 billion in loans and direct stake
The government announced in March an HK$80 billion (US$10.32 billion) scheme to help employers ride out the Covid-19 by covering the cost of wages, contributing a maximum of HK$9,000 (US$1,160) a month per employee for six months up to the end of November this year.