This three-part plan, financed by the government of Hong Kong, is designed to provide Cathay with sufficient funds to withstand the industry-wide downturn, as well as a stable platform from which it will be able to conduct a wholesale review of operations.
Cathay Pacific and Cathay Dragon will reduce capacity by 96 per cent across passenger networks in April and May in light of the severe drop in demand due to the coronavirus pandemic.
The Hong Kong-based carrier, which has been among the airlines hardest hit by the virus, said it has reduced capacity across its network by 65 per cent in March and April.
Cathay Pacific has asked staff to take three weeks of unpaid leave to help it cope with the impact of the coronavirus. The Hong Kong flag-carrier has offered a voluntary special leave scheme to all employees.
Cathay Pacific has announced today that John Slosar, chairman of the company, will be retiring at the conclusion of the next board meeting. The board of directors has appointed Patrick Healy to succeed Slosar as chairman.
Rupert Hogg has stepped down as chief executive of Cathay Pacific. Hogg warned on Monday staff could be fired if they “support or participate in illegal protests” in Hong Kong.
Cathay Pacific has completed the acquisition of Hong Kong Express Airways. Cathay Pacific chief executive and HK Express chairman, Rupert Hogg, said: “We are very excited to welcome HK Express into the group.”
Cathay Pacific is reopening its newly renovated Shanghai Pudong Cathay Pacific Lounge, marking the introduction of the airline’s awards-winning lounge design to mainland China for the first time.
American Airlines has launched a codeshare agreement with Cathay Dragon, adding service to four new destinations and increased service to three existing markets in south-east Asia.
The Hong Kong flag-carrier purchased the airline from China-based HNA Group as the latter continues to sell assets to battle a debt crisis. Cathay said it would continue to operate Hong Kong Express as a separate brand, based on a low-cost airline model.
The Hong Kong-based carrier earned a HK$2.35 billion ($300 million) profit for the year ended December 31st, as it benefited from rising airfares and a turnaround plan designed to lower costs and boost revenue