According to SCMP, Cathay Pacific and Cathay Dragon have 120 aircraft idling on the ground at any given time; which accounts for more than half of their fleet.
In addition, the group has cut more than three-quarters of their weekly flights in March. Around 1,470 weekly flights were originally scheduled for this month, but it is now been trimmed down by more than 1,120 flights.
Back in 2003, during the SARS crisis, Cathay trimmed 45% of their scheduled flights and had around 30% of their fleet idling on the ground. Comparing these two epidemics, it appears that Convid-19 is bringing a greater impact to the airline.
In the past couple of weeks, Cathay Pacific has asked 27,000 employees to take 3 weeks unpaid leave; they have also temporarily closed three of their premium lounges at Hong Kong International Airport.
Explaining the situation, an analyst from Bocom International, Luya You, said that “an outbreak is the kind of macro impact that is really hard for an airline to plan around… during an outbreak, all of it collapses because people, no matter the price point, are no longer willing to fly”.
Singapore Airlines, one of Cathay’s closest rival, has temporarily suspended over 3,000 flights, from February until the end of May. In addition, the management team is taking a 15% pay cut; they will also be offering a voluntary no-pay leave scheme to employees.
H/T: SCMP
We are Filipinos who have scheduled flight to Netherlands last week of April with change aircraft at Hongkong. Will we be allowed to enter Netherlands? We are visiting 4 European countries. What are current policies regarding Cathay Pacific flights from Manila ato European countries?
Thanks.
Please check out the entry restrictions here
https://www.cathaypacific.com/cx/en_SG/travel-information/travel-preparation/travel-advisories/notice-regarding-travel-restrictions.html?cxsource=roller
Very interesting article.
For clarity, do you mean actively idling, as in sitting with engines running, at the ready to make a repatriation/evacuation flight on a moment’s notice? Or idling, putting into an inactive (or idle) state, as in removing from service some aircraft due to the temporary lack of need? Unfortunately, this is one of those rare events where I could see the airline going either way, as this Covid-19 situation develops or deteriorates further…
just like cars in car rentals companies siting in the carpark waiting to be driven
“just like cars in car rentals companies siting in the carpark waiting to be driven”
Thank you, that kind of idling (causing something to be idle) makes more sense. 🙂
I’ll admit, I seriously pondered the other: tremendous costs involved for that many planes idling (waiting with the engines running) 24/7 just in case…sadly, my consideration comes from seeing some governments and companies throw money to the wind and do really bizarre things during a crisis. 🙁
I hope Cathay can survive. They have always been my favourite airline. Their Business Class is excellent I feel. But with the months of unrest in Hongkong followed by the Corona virus, well, they have had a hell of a time!
What‘s a Convid-19? Do you mean Covid-19?
Yes thanks for highlighting