After 35 years, the Cathay Dragon was axed due to the COVID-19 pandemic.
Cathay Pacific announced on 21 October 2020, it's shedding the Dragon brand, and slashing its global workforce by more than 8,000.The move cost thousands of Hongkongers their jobs.
According to the airline's bosses, the restructuring will help create a more focused, efficient and competitive business going forward.
(Aired on ViuTVSix on 1 September 2020)
Full Script:
"We are truly sorry for the anxiety and the distress this will cause amongst those impacted and their families."
This was the moment thousands of Cathay Pacific staff had dreaded.
Executives at Hong Kong's flagship carrier today announced a restructuring they deemed "necessary and urgent" for the survival of the airline, which has been decimated by the collapse in travel demand during the COVID-19 pandemic.
Cathay will cut 8,500 jobs globally - nearly a quarter of its entire workforce.
5,300 of those sackings will be Hong Kong-based staff.
Cathay Dragon staff will bear the brunt of those cuts, as the brand will be axed.
Cathay Pacific hopes its flagship service, and its budget carrier HK Express will retake the routes vacated by Dragon.Executives will ask remaining staff to negotiate new conditions of service. In many cases that includes slashing base pay and allowances.
(Soundbite, PATRICK HEALY, Chairman, Cathay Pacific)
"The combined impact of those three elements together, will be to reduce cash operating costs somewhere in the region of $500 million per month. That needs to be set against the current cash burn of $1.5 to $2 billion per month."
The mass layoffs came as a shock to staff.
Some, like this employee, said they had no clue about them before arriving to work this morning.
Cathay says it's offering a "generous severance package" for those sacked.
That won't be offset against pension contributions, like the MPF.
Executives say they "absolutely intend to" bring staffing back to pre-pandemic levels - if and when travel demand returns.
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