May 22 (UPI) — Cathay Pacific Airways Ltd. announced the elimination of 600 positions in a statement on Monday following its first reported loss in eight years.
The Hong Kong-based airline is Asia’s largest, but is in intense competition for a booming market with local low-cost airlines and carriers from the Chinese mainland, as well as new entrants to Asia from the Middle East, including Emirates Airlines. A competitor, Singapore Airlines Ltd., announced a quartely loss last week, as well as a “wide-ranging review” of its business model.
Cathy Pacific and its affiliates employ about 33,000 people worldwide. All the personnel reductions will occur at the company’s Hong Kong headquarters; roughly 20 percent of those working in the Hong Kong office will be laid off. About 190 management positions, or 25 percent of the airline’s management, will be terminated. Severance packages and other termination benefits will be offered to departing employees.
Rupert Hogg, who became Cathay Pacific CEO on May 1, said in the statement that the airline will have “a new structure that will make us leaner, faster and more responsive to our customer’s needs.”
No pilots or cabin crew will be affected by the announcement, but they will “be asked to deliver greater efficiencies and productivity improvements,” the statement said.
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