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Cathay Pacific
Hong KongTransport

Exclusive | Several Cathay Pacific businesses to forgo Covid-19 wage relief from Hong Kong government, paving way for lay-offs: source

  • Salaries accounted for a quarter of company’s operating expenses in the first six months of this year
  • Regional benchmark performer Singapore Airlines earlier revealed it will cut 4,300 jobs – 15 per cent of its workforce

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With most of Cathay’s planes grounded, fewer staff are needed to operate flights, which has reduced salary costs. Photo: Sam Tsang
Danny Lee
The Cathay Pacific Group will apply for a limited amount of help from the Hong Kong government’s wage subsidy scheme, the Post has learned, in a closely watched move indicating how soon it can lay off staff during the coronavirus pandemic.
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But some of Cathay’s nine major business units will not tap the latest round of the Employment Support Scheme (ESS) in a decision to be unveiled on Friday, according to an individual with knowledge of the plans.

Analysts noted that by forgoing more wage help, the Cathay businesses are free to reduce headcount as early as next month as part of a wider restructuring to adapt to a changed future that will see far fewer staff, flights or planes needed for at least four years.

Salaries accounted for a quarter of the company’s operating expenses in the first six months of this year.

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Cathay Pacific warns of historic HK$9.9 billion loss due to coronavirus pandemic

Cathay Pacific warns of historic HK$9.9 billion loss due to coronavirus pandemic

Singapore Airlines, a benchmark for premium airlines in Asia such as Cathay, announced on Thursday it would eliminate 4,300 jobs – 15 per cent of its workforce. After a hiring freeze, early retirement and natural attrition, the airline said it still needed to cut another 2,400 positions.

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