CATHAY DRAGON SHUTS DOWN WITH IMMEDIATE EFFECT
Cathay Pacific Airlines to slash 6000 Jobs end Cathay Dragon Brand
Cathay Pacific has confirmed regional subsidiary Cathay Dragon Airlines will cease operations after three decades with immediate effect. Cathay Pacific is closing its regional subsidiary Cathay Dragon with immediate effect, as part of corporate restructuring in response to the Covid-19 Pandemics continuing impact on the aviation sector. Cathay Pacific will also be cutting about 5900 Jobs or around 17pc of its staff.
The Closure of Cathay Dragon is part of a deal struck that will minimize Job cuts. Cathay Pacific was eyeing up to 8000 layoffs to cut costs. Instead it will shutter Cathay Dragon and look to layoff around 6000 employees. (5000 of which is Hong Kong based). In addition, a further 2600 Jobs will go as part of natural attrition.
Mr Tang said “Their immediate priority is to support those affected by today’s announcement. They are deeply saddened to part ways with their talented and respected colleagues and he want to thank them for their hard work, achievements, and dedication”.
Cathay group airlines are expected to operate at approximately 10PC of pre-pandemic passenger flight capacity for the rest of 2020.They will also likely operate well below 25pc of this capacity in first half 2021 and below 50pc for the entire year,assuming that covid 19 vaccines currently under development prove to be effective and are widely adopted in key market by the summer of 2021,the Company said.
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