Fragrant Harbour A forum for the large number of pilots (expats and locals) based with the various airlines in Hong Kong. Air Traffic Controllers are also warmly welcomed into the forum.

This Friday?

Old 16th Oct 2020, 21:29
  #61 (permalink)  
 
Join Date: Feb 2020
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Originally it was, 'a decision will be made before the 4th Quarter.' That was quietly changed to a decision in the 4th Quarter.

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Old 18th Oct 2020, 06:35
  #62 (permalink)  
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Ronald Lam, chief customer and commercial officer, admitted in the report that the airline was “facing a long and uncertain road to recovery.” It is burning cash at a rate of HKD1.5-2 billion Hong Kong dollars (USD194-258 million) per month, he said, and “will continue to experience significant cash burn until the market recovers.”

A full restructuring plan could be unveiled in October, he added.
Article from last month.
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Old 18th Oct 2020, 08:05
  #63 (permalink)  
 
Join Date: Mar 2016
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Monday is the new Friday.
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Old 18th Oct 2020, 12:51
  #64 (permalink)  
 
Join Date: Jul 2013
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There is a breaking story in SCMP but behind paywall.

Layoffs and paycuts..
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Old 18th Oct 2020, 12:58
  #65 (permalink)  
Rie
 
Join Date: Aug 2020
Location: Wan Chai
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Hopefully this helps those who don't have remaining articles... Or just use Chrome in incognito mode.

Cathay Pacific’s board of directors is expected to back a restructuring plan early this week that includes staff redundancies and pay cuts in a bid to keep Hong Kong’s flag carrier afloat, the Post has learned.
Employees will learn their fate before Friday but the Hong Kong government, which extended an economic lifeline to Cathay in June, is trying to pressure the company to offer more generous exit packages to the laid-off workers, according to multiple sources.
The restructuring comes after a months-long review of how Cathay should adapt to the collapse in demand for air travel due to the
coronavirus pandemic. Shallow cuts were being planned, one source said, to position the company to take advantage of an upturn in demand. But if that uptick fails to happen, the airline could be forced into making another round of redundancies.
The shake-up could be similar to what rival Singapore Airlines underwent when it secured S$11 billion (US$8.1 billion) in funding to shore up liquidity in the summer and axed 4,300 staff – about a fifth of its total workforce.

As of last week, Cathay was still finalising the cuts and whether they should be made to overall headcount or total job positions. Each option delivers a separate number and the lower one will be more palatable to the public.At a time when the airline seeks to slim down its workforce, newcomer Greater Bay Airlines could end up taking on some of its former staff. The start-up, which is eyeing the rights to fly lucrative mainland and Asia-Pacific routes, launched its first public hiring effort last weekend to bolster its application for permits to operate out of the city.

A Cathay Pacific spokeswoman said: “We do not comment on speculation.”

The airline did not reapply for the government’s latest round of the wage subsidy scheme, which requires participants to maintain staffing levels.

The company has until now been the most conservative in the industry with redundancies, according to Luya You, transport analyst at brokerage Bocom International.



“A rough estimate would be 20 to 30 per cent [of the workforce to be cut], simply because that’s what we’ve seen with other carriers of Cathay‘s size operating under similar capacity levels,” You said.

“But this still entirely depends on Cathay’s restructuring vision. Lay-offs could be much greater if the restructuring implies permanently shrinking operations that would not [require] mass rehiring once demand recovers further.”

The airline is also facing pressure to pay back the government’s share of the HK$39 billion (US$5.03 billion) bailout package. Taxpayers stumped up HK$27.3 billion in the form of preference shares and a bridging loan that has yet to be drawn down as of late September.

Cathay Pacific racked up a record HK$9.87 billion net loss in the first six months of the year and continues to burn through as much as HK$2 billion a month.

In March, the airline closed its cabin crew base in Vancouver, affecting 147 jobs. The following month, it shut down its American cabin crew network spread across New York, Los Angeles and San Francisco affecting 286 staff.

Cutting a third of staff would be roughly in line with what other airlines have done to remain afloat as Covid-19 hammers demand for travel. Qantas axed 8,500 jobs or almost 30 per cent of staff, while British Airways earmarked 13,000 out of 42,300 employees for redundancies, but the final number could be lower after union intervention.
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Old 18th Oct 2020, 13:37
  #66 (permalink)  
 
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Danny must have been really bored
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Old 19th Oct 2020, 03:37
  #67 (permalink)  
 
Join Date: Jul 2018
Location: uk
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Originally Posted by Sam Ting Wong View Post
Danny must have been really bored
His job on the line too. Old fake news that's been around for months. Time for the SCMP to get real and get a real aviation reporter in place. maybe a job for a soon to be redundant pilot. Any takers.
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Old 19th Oct 2020, 03:53
  #68 (permalink)  
 
Join Date: Jul 2018
Location: uk
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The analogy I use is this :

The Swire approach to a plant that is dying is to continually prune it back until it starts to recover. Cut, cut,cut and hope for the best.
What is needed is to re-pot the plant with new soil, change the watering regime, place in a different ligh/sun environment and tend to it's needs.
Also very important not to overfeed with fertilizer.

Time to change the gardener.
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Old 19th Oct 2020, 06:10
  #69 (permalink)  
 
Join Date: Aug 2016
Location: Vietnam
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CATHAY PAC AIR Sep Passenger Vol -98.1%, Sees 2021 PAX Flight Capacity 50% Below Normal Level
https://www.aastocks.com/share/news/...9687/?lang=Eng


Best outlook for 2021 is to operate at 50% of normal capacity.
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Old 19th Oct 2020, 13:27
  #70 (permalink)  
 
Join Date: Nov 2015
Location: HK-CRoC
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Originally Posted by Ecam321 View Post
CATHAY PAC AIR Sep Passenger Vol -98.1%, Sees 2021 PAX Flight Capacity 50% Below Normal Level
https://www.aastocks.com/share/news/...9687/?lang=Eng


Best outlook for 2021 is to operate at 50% of normal capacity.
Note: 50% is the "BEST" outlook !!! Personally, looking at worldwide sentiment re #ChinaVirus + any type of travel would make 50 % a big big win.. I think not, CERTAINLY to HK & China..
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Old 19th Oct 2020, 19:32
  #71 (permalink)  
 
Join Date: Sep 2007
Location: 1st Floor
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I know a few locals, (like most!), who won't mourn the shedding of the expat hordes. Yes, you read it here first, expats to make way for locals. Its only right, old chap.

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Old 19th Oct 2020, 21:02
  #72 (permalink)  
 
Join Date: Sep 2020
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Originally Posted by Krone View Post
I know a few locals, (like most!), who won't mourn the shedding of the expat hordes. Yes, you read it here first, expats to make way for locals. Its only right, old chap.
Yes housing has been eliminated, finally the discrimination is over!
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Old 20th Oct 2020, 00:06
  #73 (permalink)  
 
Join Date: Apr 2019
Location: Hong Kong
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Originally Posted by Krone View Post
I know a few locals, (like most!), who won't mourn the shedding of the expat hordes. Yes, you read it here first, expats to make way for locals. Its only right, old chap.
Look I'm having a bad enough time polishing a scratch out of my McClaren and I need to check the gardener has mowed the lawn. So be a good chap and stop distracting me.
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Old 20th Oct 2020, 01:15
  #74 (permalink)  
 
Join Date: Dec 1998
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Try Meguiar's Ultra-cut compound. Does wonders with the paint on my Ferrari. You're welcome.
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Old 20th Oct 2020, 03:21
  #75 (permalink)  
 
Join Date: Apr 2019
Location: Hong Kong
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Originally Posted by mngmt mole View Post
Try Meguiar's Ultra-cut compound. Does wonders with the paint on my Ferrari. You're welcome.

Thanks (it's a hard life)
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Old 20th Oct 2020, 04:36
  #76 (permalink)  
 
Join Date: Jun 2020
Location: Sydney
Posts: 25
Does anyone have any clue what's going on ?
I'm freakin' out here, can't sleep. Nothing from the company, in fact on the Hub, it almost looks like business as usual.
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Old 20th Oct 2020, 04:56
  #77 (permalink)  
Rie
 
Join Date: Aug 2020
Location: Wan Chai
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I was in CX City yesterday, no one knows anything. Hopefully we will hear soon but until then it is all just rumours heard from the friend of a friend or Danny...
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Old 20th Oct 2020, 05:04
  #78 (permalink)  
 
Join Date: Sep 2020
Location: Hong Kong
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Originally Posted by Busbitch View Post
Does anyone have any clue what's going on ?
I'm freakin' out here, can't sleep. Nothing from the company, in fact on the Hub, it almost looks like business as usual.
My opinion is that if CX follow the trends of other major airlines around the world they would look at shedding 20-30% of their entire workforce (6,000-10,000), that SCMP article seems pretty accurate. I'm still on the notion that anyone whos been in the company for around 7 years is in real danger of losing their job / furlough etc. 700-1000 pilots is around 7-9 years service. The only plus is that those of us who lose their jobs have gained valuable jet time in a prestigious company, and hopefully will be looked on favorably in the future when hiring around the world picks up again. Be prepared for worst that is to come this week (as stated) It's sad but the company has to do this in order to survive, just like Qantas etc.
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Old 20th Oct 2020, 05:48
  #79 (permalink)  
 
Join Date: Nov 2015
Location: HK-CRoC
Posts: 631
Other Major Airlines ?

AA, UA, SW, BA, DL, LH etc. ALL have very big domestic operations which will recover first. International routes will suffer most and will be the slowest to recover and as CX has not one domestic route, well, you do the math..
I believe your 20-30% cuts are extremely optimistic for CX as additionally the vultures from the North are circling and want a bigger slice of the international pie.

I hope I'm wrong.

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Old 20th Oct 2020, 06:25
  #80 (permalink)  
 
Join Date: Sep 2020
Location: Hong Kong
Posts: 17
If CX are saying 50% max flight status for next year, and then chop 50% of all staff, there is going to be such a mass exodus of expats it will be like Dubai in 2009.. just declare bankruptcy, leave all your stuff and walk away with only memories. You're right the north want in, and CX are still looked on as a British stain for the reds, doesn't help with the whole BNO passport debacle because of the protests, they want to crush it and rebrand it as fully red. Sorry divulging..
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