Hong Kong’s Cathay Pacific, Cathay Dragon will not tap next round of Covid-19 wage relief, opening door to lay-offs

Accepting city’s coronavirus wage relief means agreeing to not let staff go, something the embattled airlines are not prepared to do as they eye future

Subsidiaries, which include HK Express and Air Hong Kong, however, will take advantage of round three of the Covid-19 package, the company says

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Grounded Cathay Pacific planes sit at the Hong Kong International Airport. Photo: Winson Wong

Published: 1:48pm, 11 Sep 2020Updated: 11:54pm, 11 Sep 2020

Cathay Pacific and Cathay Dragon could start making staff redundant as early as next month after their parent group announced on Friday they would not seek further government help on wages, although other subsidiaries would still tap the next round of coronavirus relief.

“After careful consideration, we have decided that Cathay Pacific and Cathay Dragon will not submit applications to the scheme,” said Andy Wong, the airline’s general manager of corporate affairs.

Several subsidiaries, namely HK Express, Air Hong Kong, Cargo Terminal, Hong Kong Airport Service and Cathay Pacific Catering Services, would be applying to the scheme, according to the company.

“Different industries and businesses have been affected to varying extents by Covid-19, with aviation and hospitality being some of the most severely impacted,” Wong said. “The Cathay Pacific Group is no exception to this … which is why some subsidiaries will be applying to the scheme.”

Hong Kong’s flagship carrier, recently bailed out by the government, is restructuring to determine the group’s optimum post-pandemic shape and size in the fourth quarter to adapt to a future that will require far fewer employees, flights or planes for at least four years.