Hong Kong Airlines top executive salaries cut 36% amid 700 layoffs

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The financially struggling Hong Kong airline has confirmed yet another round of job cuts as nearly two-thirds of its employees were made redundant or had to suffer a significant pay cut to keep their jobs. Airlines belonging to the HNA Group have made an official announcement that some 700 employees based in Hong Kong and overseas have been laid off as of yesterday. Affected employees will be compensated based on their conditions of service and in accordance with local labor laws.

Senior management will receive a pay cut of up to 36%, down from 15% currently, between June and December of this year, depending on the grade of the position. the South China Morning Post reported that a new pilot contract has also been introduced as their base salary will be reduced by 20%, while the guarantee on the number of paid hours per month will also be removed, in addition to extended unpaid leave. According to HK01, the airline has decided to keep only a hundred flight attendants and the majority of them are flight attendants and senior flight attendants.

When asked how the airline’s marketing department will be affected, Hong Kong Airlines did not answer the question. The company said, “Hong Kong Airlines is in critical survival mode. To secure our future, it is imperative that we transform into a leaner and more efficient organization now to ensure that we can continue to operate in a sustainable manner in the difficult years to come. “

In December last year, the airline cut 250 flight attendant positions after cutting a total of 400 positions in various departments in February 2020. Too, SCMP said Hong Kong Airlines would move from its headquarters in Tung Chung to its training center at Hong Kong International Airport to save some costs.

In addition to the job cuts, Hong Kong Airlines announced last week that its Hong Kong Aviation Ground Service subsidiary would cease operations effective July 1 and that 240 employees would be laid off. Hong Kong Airlines said it is looking for a new service provider to take over its limited passenger flight to ensure that its airport services will remain uninterrupted.

Earlier this month, the airline also reportedly planned to bring its Airbus A320 fleet to a standstill to focus on cargo operations. It will deploy eight of its 21 Airbus A330s on cargo routes. After the restructuring, the airline will operate a fleet 80% smaller than before the start of the pandemic.

Earlier this month, it was announced that the brand will merge departments and job responsibilities. Once positioned as a rival to Cathay Pacific, Hong Kong Airlines struggled financially even before the pandemic, as last year’s challenges put additional pressure on the airline. At the end of 2019, the Hong Kong SAR Government’s Transportation and Housing Bureau, together with the Civil Aviation Department, met with the airline’s management team and concluded that the airline should take measures to protect the interests of passengers and staff.

Meanwhile, Cathay Pacific is reportedly planning to rebrand to a new business model that offers a wide range of products in addition to simply selling airline tickets, according to a report. A report of South China Morning Post said the Hong Kong flag carrier is considering repositioning itself and adopting an “Amazon concept” that includes many companies under the brand. Under the new plan, Cathay Pacific will become one of the brands in the Cathay ecosystem. It was reported that senior management of the company compared the plan to that of AirAsia, which offers a wide variety of activities including food delivery, online grocery shopping as well as health and insurance. Previously, the company deployed a a d which shows several lifestyle articles by email to its customers.

In the email, the company said it “is always looking for new ways to help you move forward in style – to connect with people, places and experiences that matter.”

It ended with a statement: we are going to elevate the Cathay experience you know and love into a lifestyle experience that will add to your enjoyment and enjoyment. The ad ends with the name “Cathay” with “Pacific”, sparking speculation about an imminent rebranding.

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