“We have scaled back capacity to match demand, deferred new aircraft deliveries, suspended non-essential spend, implemented a recruitment freeze, executive pay cuts and two rounds of Special Leave Schemes. Cathay Dragon shutdown with immediate effect 21 October 2020 Cathay Pacific has confirmed regional subsidiary Cathay Dragon will cease operations after three decades with immediate effect. Hong Kong Airlines, the city’s third-largest carrier, is cautious about expanding after the closure of hometown rival Cathay Dragon, according to a company executive, with the focus still on its own survival amid the Covid-19 pandemic. As many as 5,300 employees based in Hong Kong and 600 overseas staff members will be laid off … The company said it will also shut down Cathay Dragon, its regional airline unit, with operations ceasing from today. Cathay Pacific Airways, headquartered in Hong Kong, has said that it is shutting Cathay’s regional brand “Cathay Dragon”, as the Covid-19 pandemic is shaking the worldwide aviation industry. Hong Kong-based Cathay Dragon (a subsidiary of Cathay Pacific, formerly Dragonair) ordered A321neo aircraft in 2017 to renew its narrowbody fleet. JOBS AND EVENTS STRAIGHT TO YOUR INBOX! In addition, a further 2,600 jobs will go as part of natural attrition. The restructuring is aimed at reducing Cathay Pacifics cash burn to 500 … More background: Cathay Pacific shut down operations of its subsidiary Cathay Dragon in October as part of a corporate restructuring prompted by the coronavirus pandemic, handing the … “The changes announced today will reduce our cash burn by about HK$500 million per month.”. Cathay Pacific chief executive, Augustus Tang, said: “The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive. Instead, it will shutter Cathay Dragon and look to layoff around 6,000 employees (5,000 of which are Hong Kong-based). Cathay Dragon, a subsidiary that primarily flies shorter-haul flights within Asia, will cease operations. Cathay last week announced plans to cut 5,900 jobs to help it weather the pandemic, including nearly all of the positions at its regional airline Cathay Dragon, which it has shut down. There will be no offset against pension contributions. It will seek regulatory approval for most of the routes to be operated by Cathay Pacific and its budget airlines subsidiary HK Express. Cathay Pacific was eyeing up to 8,000 layoffs to cut costs. Cathay Pacific will need to undertake large-scale restructuring to ensure its survival. On 21 October 2020, Cathay Pacific announced that it would shut down all operations of Cathay Dragon and merge it with its parent company due to the lack of customers and heavy economic problems brought by the COVID-19 pandemic. Through a recruitment freeze and natural attrition, the group said it had already shed 5,900 jobs, with 5,300 going in Hong Kong and a further 600 overseas. Cathay Pacific will scrap its Cathay Dragon offshoot "with immediate effect" as part of an extensive cost-saving exercise aimed at ensuring the parent airline's survival as it weathers the global pandemic and "adapts to … Subscribe to our daily newsletter to keep up to date with the latest headlines from the global hospitality sector. Advertisement: When announcing the closure of Cathay Dragon, the Cathay … Now the Union wish comes true, Cathay Dragon shut ... Remembered Cathay Dragon Flight Attendent Union authorities strike for … It is also seeking changes to contracts with pilots and cabin crew as part of a restructuring that would cost HK$2.2 billion (RM1.2 … All Rights Reserved. This, however, requires regulatory approval. 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The decision comes as part of a wider restructuring of the Hong Kong-based carrier in the wake of the Covid-19 shutdown. The airline began flying as Dragonair with Boeing 737s in 1985. Cathay Dragon was shut down in October by the Cathay Group as part of a huge restructuring plan, driven by the pandemic’s effect on the industry. and executives subscribed to our daily newsletter. Cathay in October said it would cut 5,900 jobs to help it weather the pandemic, including nearly all of the positions at its regional airline Cathay Dragon, which it shut down. shutdown of cathay dragon to have "limited impact" on cargo network October 21, 2020 Cathay Pacific Group announced a corporate restructuring in response to the continued impact of the coronavirus pandemic on the aviation market which included ceasing the Cathay Dragon operations and reducing its workforce. Tang said: “We have taken every possible action to avoid job losses up to this point. Cathay said it hoped to continue to operate most of the routes currently offered through Cathay Dragon, mainly using wholly-owned subsidiary HK Express. We have to do this to protect as many jobs as possible and meet our responsibilities to the Hong Kong aviation hub and our customers. Sign up here to get the latest news, updates and special offers delivered directly to your inbox. “We are deeply saddened to part ways with our talented and respected colleagues, and I want to thank them for their hard work, achievements and dedication.”. Cathay Pacific said it would be offering severance packages that go “well beyond” statutory requirements. Cathay Pacific chief executive officer Augustus Tang said: “The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive. “Our immediate priority is to support those affected by today’s announcement. © 2021 - Travel Daily. Unfortunately, the Covid-19 pandemic of 2020 would scuttle those plans, as parent Cathay Pacific elected to shut down the Cathay Dragon operation as a cost … The Oneworld member has 21 Boeing 777-9 jetliners on order, with deliveries previously slated to begin in 2021 and stream … Cathay Pacific has delayed the delivery of its Boeing 777-9 jets to "beyond 2025" as part of a sweeping restructure of the airline, which will also see the Cathay Dragon brand shut down.. Cathay Pacific will scrap its Cathay Dragon offshoot "with immediate effect" as part of an extensive cost-saving exercise aimed at ensuring the parent airline's survival as it weathers the global pandemic and " … GET THE LATEST TRAVEL INDUSTRY NEWS, “But in spite of these efforts, we continue to burn HK$1.5-2 billion cash per month. As of yesterday, Cathay Dragon was only flying to a handful of cities in mainland China, including Beijing, Shanghai, Guangzhou, and Xiamen. Be part of our community of seasoned travel and hospitality industry professionals from all over the world. The airline connected Hong Kong to destinations primarily in China and East Asia, though its map reached as far west as India and east to Japan prior to the crisis. Major elements of the restructuring include axing approximately 8,500 positions across the entire group, which accounts for around 24% of its established headcount. Cathay Pacific shutdown of Dragon brand cuts intra-Asia cargo capacity freightwaves.com| 10-22 Cathay Dragon flights with cargo-only passenger aircraft ended with the regional carrier’s shutdown Wednesday, leaving shippers with fewer options during the peak freight season. © 2021 Breaking Travel News. Cathay Dragon has 48 aircraft primarily flying to mainland China and other regional destinations. Cathay Dragon, the Group’s wholly-owned regional subsidiary, will cease operations with immediate effect. and executives subscribed to our daily newsletter. 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