Hong Kong Airlines launches wide restructuring bid, grounds A320 fleet but holds off on job cuts

A source says however that if the ailing carrier ultimately has to axe jobs, up to 40 per cent of staff will be made redundant

Long-pay leave scheme introduced entails offer of six months off in exchange for one months’ pay, or nine months’ leave with two months’ pay

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A Hong Kong Airlines A320 plane sits on the tarmac at Hong Kong’s airport. Photo: Winson Wong

Published: 7:00pm, 9 Jun 2021Updated: 11:15pm, 9 Jun 2021

Hong Kong Airlines informed staff on Wednesday it would launch a wide restructuring but held off on immediate job cuts.

In an internal memo on Wednesday, the ailing airline introduced a voluntary long-pay leave scheme, offering staff the option to take six months off in exchange for one months’ pay, or nine months’ leave with two months’ pay.

Subsequent redundancies would depend on how many employees opted for the scheme, a source familiar with the situation said. If job cuts ultimately came into effect, between 30 and 40 per cent of staff could be asked to leave, the source added.

The airline also stated that eight widebody Airbus A330 planes would be used mostly for cargo flights, while its 12 short-haul A320 planes would be grounded for a year from July, confirming an earlier Post report.

Hong Kong Airlines sent an internal memo to staff on Wednesday, stating it was in ‘critical survival mode’. Photo: Dickson Lee

The carrier, backed by the bankrupt HNA Group, said it would move out of its main headquarters in Tung Chung to its training centre at Hong Kong International Airport in Chek Lap Kok to cut costs amid the merger and consolidation of departments.

A new pilot contract will also be introduced and unpaid leave extended.