Dragonair to lay off 700 after Cathay takeover

Hong Kong Dragon Airlines (Dragonair) may lay off as many as 700 staff after it is taken over by Cathay Pacific Airways Ltd, the Standard newspaper reported. The newspaper quoted an unidentified source as saying that Cathay Pacific intends to restructure Dragonair.

Cathay Pacific, which owns 17.8 pct of Dragonair at present, agreed in June to buy out all other Dragonair shareholders in an 8.2 bln-hkd transaction.