Jamie Freed
[Hong Kong 3rd Reuters]-Cathay Pacific Airways <0293.HK> stands on the cliff. Some employees participated in a protest demonstration in Hong Kong or expressed their support, touching the back of Chinese aviation authorities, refused to approve the crew list, and were subject to persistent airframe inspections There are even voices that threaten long-term survival as an independent company.
<Successful dismissal and resignation of pilots>
On August 9, the Chinese Civil Aviation Authority (CAAC) banned Cathay employees involved in the demonstration from operating in mainland China, but two people familiar with the situation said Cathay without explanation since this announcement. There have been several instances where the entire crew list of was denied. In one of the stakeholder stories, Cathay has been urgently forced to work on personnel, and is examining social media to find crew members that are considered security threats.
The four pilots pointed out that the pressure on Cathay by the Chinese authorities is also reflected in the rapid increase in on-site inspections during landing.
Employees confessed to Reuters that Cathay's internal atmosphere was widespread and that the future of an independent company would be very unclear and left China's will.
Employees who have been stamped out by CAAC as a supporter of demonstrations and who are banned from operating in mainland China will end their careers there. According to the aviation industry labor organization “Hong Kong Airborne Workers Association”, a total of 30 people including 8 pilots and 18 cabin attendants have been dismissed or resigned due to the ban on boarding the CAAC. In August, Rupert Hogg left CEO as well.
Democrat Jeremy Tam, a Cathay pilot, said, “The situation has changed abruptly,” and quickly compared the situation after the CAAC issued an order to exclude staff involved in demonstrations to a political trial. Added that the threat to the world has become huge.
<Fear of deduction method>
National aviation authorities regularly conduct on-board inspections at airports to ensure airlines comply with safety standards. However, after the CAAC demonstrator's exclusion order, the pilots went into operation due to the unusual situation that inspections became routine and the crew's mobile phone could be checked for anti-Chinese photos and messages. He told me that there was a delay.
The stricter inspection has increased the possibility that authorities will consider minor issues such as dirt on the exterior as a “defect”.
In the pilot's explanation, CAAC airframe inspection is a deduction method, and authorities should reduce the number of cathay operations, reduce destinations according to the inspection results, and prohibit the flight to mainland China in the worst case Is also possible.
As a result, Cathay management has urged its staff to avoid violations of the rules with maximum effort.
CAAC also tends to be more active in violating rules than other regulatory authorities. In 2017, Emirates, which committed two safety-related violations, was prohibited from expanding its business for six months. Air China
<601111.SS> was also ordered last year to reduce the operation of the Boeing 737 by 10% due to the pilot's mistaken operation to smoke electronic cigarettes in the cockpit and the aircraft plummeting.
<Pressure from many directions>
Employees also feel pressure from other Chinese regulators. According to Dragonair pilots under Cathay, the Immigration Bureau at the airport in some of China's main airports with the Chinese flag was set up last week before October 1st (Chinese National Day). We requested submission of photograph taken. Many pilots, mainly those from the West, refused to submit, but crew members from Hong Kong were unable to refuse because of the eyes of Cathay and the Chinese government.
The pilot said, “It feels like everyone is walking on thin ice.”
Long-term protests in Hong Kong have led to a sharp drop in demand for travel to Hong Kong, increasing pressure on Cathay.
As for Cathay, the total number of passengers decreased by 11.3% in August. According to the estimates of the two pilots, Dragon Airlines, which is responsible for the majority of flights to mainland China, had an average boarding rate of 60-65% in September, which was below the normal 80%. This is a disaster that is comparable to the time of the SARS epidemic in Hong Kong and the global financial crisis.
Some state-owned companies, such as the Chushin Bank (CITIC), notify employees not to use Cathay. Information on China's national media and the dissemination of information through the social media of consumers in mainland China also attack Cathay.
Cathay operations depend on the Chinese government, and the general view is that there are few options for newly established management teams.
A Dragon Airlines pilot said, “It is a Hong Kong company, but the employment conditions are on the same level as mainland China. It may die from thousands of cuts.”
(Jamie Freed reporter)