London Daily

Focus on the big picture.
Tuesday, Sep 16, 2025

Lay-offs loom as Hong Kong’s Cathay Pacific, Cathay Dragon to forgo wage relief

Lay-offs loom as Hong Kong’s Cathay Pacific, Cathay Dragon to forgo wage relief

Accepting city’s coronavirus wage relief means agreeing to not let staff go, something the embattled airlines are not prepared to do as they eye future.

Cathay Pacific and Cathay Dragon could start making staff redundant as early as next month after their parent group announced on Friday they will not seek further government help on wages, though subsidiaries will still tap the next round of coronavirusrelief.

“After careful consideration, we have decided that Cathay Pacific and Cathay Dragon will not submit applications to the scheme,” airline general manager of corporate affairs Andy Wong said.

Some of the group subsidiaries, namely HK Express, Air Hong Kong, Cargo Terminal, Hong Kong Airport Service and Cathay Pacific Catering Services, will be applying to the scheme, according to the company.

“Different industries and businesses have been affected to varying extents by Covid-19, with aviation and hospitality being some of the most severely impacted. The Cathay Pacific Group is no exception to this … which is why some subsidiaries will be applying to the scheme,” Wong said.


Hong Kong’s flagship carrier, recently bailed out by the city government, is restructuring to determine the group’s optimum post-pandemic shape and size in the fourth quarter to adapt to a future that will utilise far fewer staff, flights or planes for at least four years.

Based on the airline’s timeline and the looming expiration of the wage subsidy, lay-offs could begin in October. Otherwise, any redundancies would be put off until at least December for those who apply for the scheme again.

“We continue to make decisions based on the long-term interests of the company and the Hong Kong aviation hub, to protect our future and as many people as possible. We will share more details on our plans when available,” Wong said.

The focus of upcoming job and cost cuts appears squarely aimed at the company’s two biggest business units, Cathay Pacific and Cathay Dragon, which employ 26,500 people. The wider group employs 33,000 staff, including those working for its catering and frequent flier businesses.

Key rival Singapore Airlines (SIA) on Thursday said 4,700 jobs would be axed. Despite a hiring freeze, early retirements and natural attrition, the airline said it still needed to cut another 2,400 positions.

Airlines around the world are dealing with the biggest crisis in aviation history. Some have disappeared already, more are at risk, and even more have frantically raised cash to compensate for a collapse in revenue and passenger demand for travel.


Cathay Pacific’s post-pandemic future will include far fewer flights – and staff – over the next four years.


Redundancies have been a key part of ensuring survival.

Qantas said last month that 8,500 jobs – 30 per cent of its pre-pandemic workforce – would be axed. A third of Virgin Australia’s 9,000 jobs are to go. British Airways said it had cut 8,236 jobs through voluntary redundancies, leaving almost 5,000 more roles to be culled.

Between the big US carriers, tens of thousands of jobs have been earmarked for furlough or elimination.

Companies taking part in Hong Kong’s Employment Support Scheme, launched to ease the economic blow from the pandemic and now in its second round, are not allowed to make redundancies as a condition of accepting the cash.

Cathay Pacific in June unveiled a HK$39 billion (US$5.03 billion) recapitalisation scheme that included HK$27.3 billion from the government. It lost HK$9.87 billion in the first six months of 2020.

Under the HK$81 billion wage relief scheme first announced in March, the government is offering to pay 50 per cent of employees’ salaries for six months, capped at HK$9,000 per worker each month.

In the first round of the scheme covering June to August, the airline and its subsidiaries, received HK$707 million.

Cathay’s daily passenger traffic has collapsed by 99 per cent, and it has grounded most passenger flights, scrapping most of its schedules. The Post reported this week that the airline might send half its planes for long-term storage abroad as it braces for a difficult winter amid slow recovery.

Newsletter

Related Articles

0:00
0:00
Close
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
×