Can slimmed-down Cathay Pacific still protect Hong Kong’s status as global aviation hub?

Survival of flagship carrier viewed as critical to city’s fundamental role serving the region and the world

Government should ensure Cathay’s international air rights are protected and seek help from Beijing to operate more flights serving mainland Chinese passengers, experts say

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A woman peers out from a window at Cathay Pacific City at Hong Kong International Airport. Photo: Bloomberg

Published: 7:30am, 22 Oct 2020Updated: 10:42am, 22 Oct 2020

Cathay Pacific Airways’ restructuring raises the question of whether mass lay-offs will be enough to ensure the carrier’s long-term survival, which is critical for Hong Kong to keep its role as a global aviation hub, according to government advisers and an industry expert.

To strengthen the competitiveness of the city’s airlines amid the prolonged Covid-19 pandemic, the city should seek help from the central government to operate more flights serving mainland Chinese passengers, including the Greater Bay Area, they said.

Under the restructuring plan to cope with the fallout from the health crisis, Cathay Pacific announced on Wednesday it would eliminate 8,500 job posts, which included making 5,900 staff redundant. Its smaller sister airline Cathay Dragon – serving the mainland and Asia countries – would cease operations.

Cathay Dragon served regional 51 destinations and mainland China before the Covid-19 pandemic. Photo: Handout

“Cathay Pacific has to survive and needs to keep its strength and competitiveness,” said Law Cheung-kwok, senior adviser at the aviation policy and research centre at Chinese University. “International routes to London and Europe, to North America, Australia and many parts of the world, are what makes it stand out from other competitors in the region.

“Only then will Cathay still have its edge. We are a hub because we have these long-haul flights for businesses, not because we provide regional travel.”