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Cathay Pacific to slash 8,500 jobs, shut regional airline Cathay Dragon

Christian Fernsby ▼ | October 21, 2020
Cathay Pacific Airways said it would cut 8,500 jobs and shut a regional airline as it grapples with the plunge in air travel due to the pandemic.
Cathay Pacific
Airways   Cathay Pacific
About 5,300 employees based in Hong Kong and another 600 elsewhere will likely lose their jobs, and 2,600 unfilled positions will be cut. The cuts are about 24% of the company’s workforce, Cathay Pacific said in a statement.

Topics: Cathay Pacific

The company will also shut down Cathay Dragon, its regional airline unit, with operations ceasing from Wednesday. It will seek regulatory approval for most of the routes to be operated by Cathay Pacific and its budget airlines subsidiary HK Express.

The restructuring is aimed at reducing Cathay Pacific’s cash burn to 500 million Hong Kong dollars ($64.5 million) a month, from about 1.5 billion Hong Kong dollars ($193.5 million) to 2 billion Hong Kong ($258 million) dollars currently, Cathay Pacific CEO Augustus Tang said in a statement.