Jaydee Posted October 21, 2020 Share Posted October 21, 2020 This after already receiving 5 billion from the government! Cathay Pacific to slash 5,900 jobs, end Cathay Dragon brand as pandemic cuts flights in half Passenger traffic not expected to recover until 2024 SYDNEY — Hong Kong’s Cathay Pacific Airways Ltd said on Wednesday it would slash 5,900 jobs and end its regional Cathay Dragon brand, joining peers in cutting costs as it grapples with a plunge in demand due to the coronavirus pandemic. The airline would also seek changes in conditions in its contracts with cabin crew and pilots as part of a restructuring that would cost HK$2.2 billion (US$283.9 million). Overall, it will cut 8,500 positions, or 24 per cent of its normal headcount, but that includes 2,600 roles currently unfilled due to cost reduction initiatives, Cathay said. “The actions we have announced today, however unpalatable, are absolutely necessary to bring cash burn down to more sustainable levels,” Cathay Chairman Patrick Healy told reporters. Cathay shares jumped almost 7 per cent during early trading and closed 2.3 per cent higher, with broker Jefferies saying the announcement removed a key overhang on the stock. Singapore Airlines Ltd and Australia’s Qantas Airways Ltd have already announced similarly large payroll cuts, as the International Air Transport Association forecasts passenger traffic will not recover until 2024. Cathay, which has stored around 40 per cent of its fleet outside Hong Kong, said on Monday it planned to operate less than 50 per cent of its pre-pandemic capacity in 2021. After receiving a $5 billion rescue package led by the Hong Kong government in June, it had been conducting a strategic review. The airline said it was bleeding HK$1.5 billion to HK$2 billion of cash a month and the restructuring would stem the outflow by HK$500 million a month in 2021, with executive pay cuts continuing throughout next year. BOCOM International analyst Luya You said she had expected more strategic insight from the airline on its fleet plans and route network as part of the restructuring. “Had they revealed more on fleet planning for 2021-22, we would get a much better sense of their outlook,” she said. Cathay will postpone the delivery of its 21 Boeing Co 777-9 jets on order beyond 2025, Healy said. Exit the Dragon The decision to end regional brand Cathay Dragon is in line with rival Singapore Airlines’ pre-pandemic move to fold regional brand Silkair into its main brand, though in this case 2,500 Cathay Dragon pilots and cabin crew will lose their jobs. Cathay Dragon, once known as Dragonair, operated most of the group’s flights to and from mainland China and had been hit by falling demand before the pandemic due to widespread anti-government protests in Hong Kong. https://financialpost.com/transportation/airlines/cathay-pacific-to-slash-5900-jobs-end-cathay-dragon-brand-as-pandemic-cuts-flights-in-half?utm_medium=Social&utm_source=Facebook&fbclid=IwAR33BQhSnXhGLIn2yFKBIDWR4cGcoQdg4lOe2j4od7mIdknk-G_PhiB170M#Echobox=1603277553 Link to comment Share on other sites More sharing options...
Tango Foxtrot Posted October 21, 2020 Share Posted October 21, 2020 1.13 million deaths worldwide so far. Who cares. People are losing their jobs. F ing governments. Link to comment Share on other sites More sharing options...
j.k. Posted October 21, 2020 Share Posted October 21, 2020 18 minutes ago, Tango Foxtrot said: 1.13 million deaths worldwide so far. Who cares. People are losing their jobs. F ing governments. You forgot your sarcasm emoji I think. That's a narrow view of the cost, dying with sars cov2 does not equate to sars cov2 being cause of death. People are not being treated or diagnosed for other ailments - and dying, mental health is strained beyond breaking for some, family's and children's security and futures are being reduced to shambles... yet excess deaths in world populations is in line with historic averages. The pandemic is over despite hyped numbers and media. So now we're into the self induced costs. How far are we going to go? When will we get the real numbers? Link to comment Share on other sites More sharing options...
J.O. Posted October 21, 2020 Share Posted October 21, 2020 49 minutes ago, j.k. said: The pandemic is over I'd like to know which dictionary you use ... Link to comment Share on other sites More sharing options...
Tango Foxtrot Posted October 21, 2020 Share Posted October 21, 2020 Thanks. I didn't realize it was all just a scam Link to comment Share on other sites More sharing options...
Turbofan Posted October 21, 2020 Share Posted October 21, 2020 Two comments. Cathay had been struggling prior to Covid. Companies struggling going in, are fortunate to come out the other side at all. Just look at all the bankruptcies everywhere. I think this is just the US and of course includes only traded companies. https://www.alpha-sense.com/insights/covid-bankruptcies As for the Pandemic. How about a little over half way through world wide, with parts of the world already through? Hopefully. You can’t judge the status of the pandemic by cases. There is hyper vigilance on cases right now because as individuals that is the only way we can contribute. But trying to ascertain what stage of the pandemic? Completely useless. Cases will increase in perpetuity. The best way to check the status of pandemic is excess deaths. It takes all the human nuances out of the equation. Problem is it is very difficult for any of us to get that data in real time. I did find one for the UK. Notice the UK excess death is back to zero. But they were an initial hit country. In the absence of excess death we do have access to straight deaths per day. Not as good because it is people who passed with Covid. Not necessarily of Covid. That is an important distinction and why it is not as accurate as excess death. Bases on cases vs death graphs it looks like most countries who were hit hard last spring are through the pandemic. Mid latitude countries, where spread is summer, look to be on the backend of their pandemic (India/ Mexico/Brazil) Southern latitude countries like Argentina entering their Pandemic. Assuming, (something I get to do as an armchair quarterback with only virtual lives at risk) the virus doesn’t mutate into something worse, excess death will start to trend back to zero worldwide this winter. That is what would be expected to happen IF Covid19 progresses like other coronavirus of the past. Like SARS, MERS, SWINE,H1N1 That IF is the problem the real decision makers have to deal with, and the lives at risk aren’t virtual. Im staying hopeful Link to comment Share on other sites More sharing options...
Turbofan Posted October 27, 2020 Share Posted October 27, 2020 https://www.oxfam.org/en/press-releases/12000-people-day-could-die-covid-19-linked-hunger-end-year-potentially-more-disease These kinds of numbers are starting to show the true cost of lockdown. The Hunger Virus. mb-the-hunger-virus-090720-en.pdf Link to comment Share on other sites More sharing options...
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