Just one day after announcing a 90% cut in capacity to Mainland China, SCMP reported today that the CEO of Cathay Pacific (Augustus Tang) is now asking all of his 27,000 employees to take 3 weeks unpaid leave over the next three months.
In a taped video recording, Augustus Tang explained that the company’s situation is “just as grave” as the global financial crisis that happened a decade ago. He also added that the airline is going through one of the most difficult times it has ever had.
“I am appealing to each and everyone of you to help… Preserving our cash is now key to protecting our business” – said Augustus Tang
Just 7 months into the job Augustus Tang has to keep the company afloat amidst the Hong Kong protest and just recently, the corona virus.
Cathay Pacific will be cutting 30% of its worldwide capacity. This includes the 90% cut in capacity to Mainland China
Maybe they should operate smaller airplanes to cut on costs. The new A220 is now available and can fly longer distances is my understanding. They can fill them up to the max and fly fuel efficient planes vs have wide body jets 3/4 full and spend more in fuel and other costs.
Nelson….sounds good….on some bean-counter’s excel spreadsheet. So….sell al the big airplanes now….used….and buy all new fleet of A220’s at new pricing…..and how soon can they get them, train all their pilots and flight attendants and mechanics and ground people to operate the new type. Hm…..COST? Billions. Time: YEARS, as they aren’t readily available.
Wonder what the employees will live on for those several years…? Maybe 3 wks is not so bad…..
OR…..like the Mechanics at the now-defunct Eastern Airlines in the US, the employees COULD say: “Hell NO! Full pay ’til the last day !!” ……which is EXACTLY what happened……
So exactly what Money are the staff expected to live on for three weeks unpaid? Surely the solution is to improve management efficiency and profitably rather than scapegoat the staff.
Hi Lakesider,
Certainly, you have a point there. But when a company is on the edge of the cliff, I guess they have to resort to all sorts of ways to cut cost and tide through the headwind. Looks like Cathay has tried to look at all areas to cut cost. Of cos, this is just my five cent worth of thoughts