Dragon Air is Terminated



ORIGINAL POST
Posted by Ed 4 yrs ago
https://img.gta5-mods.com/q95/images/dragonair-airbus-a320/b1b869-GTA5%202016-06-17%2023-55-34-46.png
Hong Kong’s Cathay Pacific Airways slashes jobs, kills Dragon
 

Hong Kong’s Cathay Pacific Airways Ltd said on Wednesday it would slash 5,900 jobs and end its regional Cathay Dragon brand, joining peers in cutting costs as it grapples with a plunge in demand due to the coronavirus pandemic.

The airline would also seek changes in conditions in its contracts with cabin crew and pilots as part of a restructuring that would cost 2.2 billion Hong Kong dollars ($283.9m), it told the stock exchange.

Overall, it will cut 8,500 positions or 24 percent of its normal headcount, but that includes 2,600 roles currently unfilled due to cost reduction initiatives, Cathay said.

“The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive,” Cathay Chief Executive Officer Augustus Tang said in a statement.

“The future remains highly uncertain and it is clear that recovery is slow,” Cathay said in Wednesday’s statement. “The management team has concluded that the most optimistic scenario it can responsibly adopt is one in which, for the year 2021, the company will be operating at well under 50 percent of the passenger capacity it operated in 2019.”

 

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COMMENTS
Ed 4 yrs ago
2006 ---  HONG KONG (MarketWatch) -- Hong Kong-based Cathay Pacific Airways Ltd. will take over smaller local rival Dragon Airlines in a share buyout worth HK$8.2 billion ($1.06 billion), according to a joint press release issued Friday by five companies involved in the deal.
 
 
8 billion HKD down the drain... 
 
 

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Ed 4 yrs ago
Hong Kong Hub Puts Cathay in Tighter Corner Than Singapore Air
 
 
They are both critically important to their domestic economies, highly regarded by customers and totally reliant on international travel. They are also in deep financial strife and shedding thousands of jobs because of the coronavirus crisis.
 

Cathay Pacific Airways Ltd. and Singapore Airlines Ltd. have stood out for over half a century as aviation powerhouses, prestigious brands atop a lucrative market fueled by Asia’s economic boom. The pandemic has severely hurt the pair, but Hong Kong-based Cathay is likely in a tougher spot, analysts say.
 

Cathay announced Wednesday that it is laying off nearly 6,000 people and eliminating 2,600 vacant positions, which combined amount to about 24% of its total workforce. It is also shuttering regional airline Cathay Dragon and redoing contracts for pilots and cabin crew. The goal is to reduce unsustainable cash burn by HK$500 million ($65 million) a month.
 

“In these straitened times, we must focus on a single world-leading premium travel brand -- Cathay Pacific -- complemented by a single low cost leisure travel brand -- HK Express,” Cathay Chairman Patrick Healy said Wednesday, referring to the budget carrier the company acquired last year
 

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Ed 4 yrs ago
Read the reaction to the demise of Dragon Air and the forced pay cuts for Cathay Pacific pilots on this airline pilots forum.

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