Cathay Pacific to slash workforce, end Cathay Dragon brand due to pandemic | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Tuesday
July 22, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
TUESDAY, JULY 22, 2025
Cathay Pacific to slash workforce, end Cathay Dragon brand due to pandemic

Aviation

Reuters
21 October, 2020, 11:05 am
Last modified: 21 October, 2020, 11:10 am

Related News

  • Bagerhat upazila hospitals crippled by lack of Covid test kits amid nationwide spike
  • 10 more Covid-19 cases reported in country
  • RMG workers Savar demo ends as Pride Group factories agree to clear dues following layoffs
  • 2,000 workers protest as shoe factory shuts down amid unrest at Ctg EPZ
  • Navigating the transition: How to land your next job after a layoff

Cathay Pacific to slash workforce, end Cathay Dragon brand due to pandemic

Overall, it will cut 8,500 positions, or 24% of its normal headcount, but that includes 2,600 roles currently unfilled due to cost reduction initiatives

Reuters
21 October, 2020, 11:05 am
Last modified: 21 October, 2020, 11:10 am
Cathay Pacific and Cathay Dragon logos are seen near a counter at Hong Kong International Airport, China October 20, 2020/ Reuters
Cathay Pacific and Cathay Dragon logos are seen near a counter at Hong Kong International Airport, China October 20, 2020/ Reuters

Hong Kong's Cathay Pacific Airways Ltd said on Wednesday it would slash 5,900 jobs and end its regional Cathay Dragon brand, joining peers in cutting costs as it grapples with a plunge in demand due to the coronavirus pandemic.

The airline would also seek changes in conditions in its contracts with cabin crew and pilots as part of a restructuring that would cost HK$2.2 billion ($283.9 million), it told the stock exchange.

Overall, it will cut 8,500 positions, or 24% of its normal headcount, but that includes 2,600 roles currently unfilled due to cost reduction initiatives, Cathay said.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

"The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive," Cathay Chief Executive Augustus Tang said in a statement.

Cathay shares jumped almost 7% in early trade, with broker Jefferies saying the announcement removed a key overhang on the stock.

Singapore Airlines Ltd and Australia's Qantas Airways Ltd have already announced similarly large payroll cuts, as the International Air Transport Association forecasts passenger traffic will not recover until 2024.

Cathay, which has stored around 40% of its fleet outside Hong Kong, said on Monday it planned to operate less than 50% of its pre-pandemic capacity in 2021.

After receiving a $5 billion rescue package led by the Hong Kong government in June, it had been conducting a strategic review that analysts expected would result in major job losses.

The airline said it was bleeding HK$1.5 billion to HK$2 billion of cash a month and the restructuring would stem the outflow by HK$500 million a month in 2021, with executive pay cuts continuing throughout next year.

BOCOM International analyst Luya You said she had expected more strategic insight from the airline on its fleet plans and route network as part of the restructuring.

"Had they revealed more on fleet planning for 2021-22, we would get a much better sense of their outlook," she said.

The decision to end regional brand Cathay Dragon is in line with rival Singapore Airlines' pre-pandemic move to fold regional brand Silkair into its main brand.

Cathay Dragon, once known as Dragonair, operated most of the group's flights to and from mainland China and had been hit by falling demand before the pandemic due to widespread anti-government protests in Hong Kong that deterred mainland travellers.

Plans to end the brand earlier this year hit roadblocks from China's aviation regulator because of infractions during last year's pro-democracy protests, two sources told Reuters in May.

Cathay said the airline would cease operating immediately and it would seek regulatory approval to fold the majority of Cathay Dragon's routes in Cathay Pacific and low-cost arm HK Express.

"Now that Cathay has decided on staff count and the elimination of the Dragon brand it knows the size of the airline and the structure going forward and can complete its new fleet and network plan," said Brendan Sobie, an independent aviation analyst.

Like Singapore Airlines, Cathay lacks a domestic market to cushion it from the fall in international travel due to border closures.

In September, Cathay's passenger numbers fell by 98.1% compared with a year earlier, though cargo carriage was down by a smaller 36.6%.

Cathay shares have fallen 43% since the start of January. In July, it reached agreement with Airbus SE to delay the delivery of A350s and A321neos and said it was in advanced talks with Boeing Co about deferring its 777-9 orders.

The airline's share register is dominated by Swire Pacific Ltd, Air China Ltd, Qatar Airways and the Hong Kong government, with only a 12% free float.

($1 = 7.7500 Hong Kong dollars)

Coronavirus chronicle / Top News / World+Biz / Global Economy

Cathay Pacific / Layoff / Coronavirus / Cathay Dragon brand

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • An ambulance crowded in the aftermath of the plane crash in the capital on 21 July. Photo: Syed Zakir Hossain/TBS
    Wails of despair and pain reverberate at national burn institute
  • The jet plane charred after crash on 21 July at the Milestone school premises. Photo: Mehedi Hasan/TBS
    Apocalypse at school 
  • Photo was taken on 21 July by Syed Zakir Hossain/ TBS
    Govt to bear full treatment costs for Milestone plane crash victims

MOST VIEWED

  • Training aircraft crashes at the Diabari campus of Milestone College on 21 July 2025. Photo: Courtesy
    BAF jet crash at Milestone school: At least 20 including children, pilot dead; 171 hospitalised
  • Flight Lieutenant Md Towkir Islam. Photo: Collected
    Pilot tried to avoid disaster by steering crashing jet away from populated area: ISPR
  • TBS Illustration
    US tariff: Dhaka open to trade concessions but set to reject non-trade conditions
  • 91-day treasury bills rate falls 1.13 percentage points to 10.45% in a week
    91-day treasury bills rate falls 1.13 percentage points to 10.45% in a week
  • An idle luxury: Built at a cost of Tk450 crore, this rest house near Parki Beach in Anwara upazila has stood unused for six months. Perched on the southern bank of the Karnaphuli, the facility now awaits a private lease as the Bridge Division seeks to put it to use. Photo: Md Minhaz Uddin
    Karnaphuli Tunnel’s service area holds tourism promises, but tall order ahead
  • Bangladesh declares one-day state mourning following plane crash on school campus
    Bangladesh declares one-day state mourning following plane crash on school campus

Related News

  • Bagerhat upazila hospitals crippled by lack of Covid test kits amid nationwide spike
  • 10 more Covid-19 cases reported in country
  • RMG workers Savar demo ends as Pride Group factories agree to clear dues following layoffs
  • 2,000 workers protest as shoe factory shuts down amid unrest at Ctg EPZ
  • Navigating the transition: How to land your next job after a layoff

Features

Illustration: TBS

Uttara, Jatrabari, Savar and more: The killing fields that ran red with July martyrs’ blood

3h | Panorama
Despite all the adversities, girls from the hill districts are consistently pushing the boundaries to earn repute and make the nation proud. Photos: TBS

Despite poor accommodation, Ghagra’s women footballers bring home laurels

1d | Panorama
Photos: Collected

Water-resistant footwear: A splash of style in every step

1d | Brands
Tottho Apas have been protesting in front of the National Press Club in Dhaka for months, with no headway in sight. Photo: Mehedi Hasan

From empowerment to exclusion: The crisis facing Bangladesh’s Tottho Apas

2d | Panorama

More Videos from TBS

More training plane crashes in Bangladesh

More training plane crashes in Bangladesh

3h | TBS Today
Bird's Eye View of the Sirased Plane Rescue Operation

Bird's Eye View of the Sirased Plane Rescue Operation

4h | TBS Today
How law enforcement is carrying out rescue operations

How law enforcement is carrying out rescue operations

5h | TBS Today
News of The Day, 21 JULY 2025

News of The Day, 21 JULY 2025

5h | TBS News of the day
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net