Cathay Pacific slashes flights
Cathay Pacific slashes flights

Covid-19: Cathay Pacific Has 120 Aircraft Grounded

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.

a comparison of a pie chart
Data source: SCMP

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.

SCMP video showing dozen of aircraft idling at Hong Kong International Airport

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.

a man in a suit
Augustus Tang, CEO of Cathay Pacific, addressing the Convid-19 situation to its employee in a video. Source: SCMP

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.