Author: Chen Qianting
Last update date: 2020-10-21 11:54
Cathay Pacific Airways today (21st) announced a business restructuring, laying off approximately 8,500 employees, and the Cathay Dragon brand also ceased operations.
Financial Secretary Chen Maobo said that the business restructuring arrangement is a business decision of the Cathay Pacific Group. The observers appointed by it have reminded the company's management to minimize the impact on employees and society during business adjustments.
Chen Maobo also said that the global aviation industry is severely affected by the new coronavirus pneumonia. If the survival of the Cathay Pacific Group is not properly handled, it will harm Hong Kong's status and development as an international aviation hub in the region, as a regulatory authority, transportation and housing. The bureau has also asked Cathay Pacific to adjust its scale of operations to take full account of the potential impact on Hong Kong's international aviation hub status and aviation network.
Chen Maobo said that the business restructuring is Cathay Pacific's commercial decision.
(Information Picture/Photo by Li Zetong)
In response to media enquiries, Financial Secretary Chen Maobo stated that the global aviation industry has been severely hit by the new pneumonia epidemic, and the Cathay Pacific Group is also facing unprecedented operational challenges and financial pressures. Chen described that if this survival issue is not properly addressed, it will Damage to Hong Kong's status and development as an international aviation hub in the region will also bring other negative effects to the Hong Kong economy.
The Hong Kong government used the land fund to inject 27.3 billion yuan into Cathay Pacific in June this year. Chen Maobo said that it was to help the group survive the extremely severe market environment. Participate in the daily operations of the group.
He also mentioned that many major international airlines, while receiving assistance from their government or state-run funds, inevitably have to reduce costs through business restructuring and downsizing, and strive to survive the economic winter.
Chen quoted that Cathay Pacific said after receiving the capital injection, that it would make recommendations to the board of directors on the most appropriate scale and model of the group's operations in the fourth quarter of this year. Cathay Pacific also applied for the government's employment protection program.
Chen Maobo said that the business restructuring arrangement this time is a commercial decision of the Cathay Pacific Group. Although the two observers appointed by the government to the group board of directors have no voting rights, they have provided opinions to the company on the arrangement and reminded the company’s management that During business adjustments, the impact on employees and society must be minimized as much as possible.
The Transport and Housing Bureau has also asked Cathay Pacific to adjust its business model to take full account of the potential impact on Hong Kong's international aviation hub status and aviation network.
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