Cathay Dragon, a full service regional carrier flying primarily to China and mainland Asia, is being shuttered and Cathay Pacific hopes to retain most of it’s routes.
Reduced revenue due to travel restrictions to limit the pandemic have not been able to meet recurring costs, despite deferring aircraft deliveries, implementing special leave schemes, and cutting executive pay. The airline group has been losing as much as $260m a month but will reduce costs by $64m a month in 2021. 8,500 positions are being eliminated, with 5,300 jobs from Hong Kong, accounting for around 24% of Cathay Pacific’s total staff.
"This crisis is deeper, and the road to recovery slower and more patchy than anyone thought possible just a few months ago," said a Cathay Pacific representative. The aviation sector is struggling globally given the safety & biosecurity regulations stringently imposed to curb the spread of COVID-19.
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