Cathay plans further cost cuts

After cutting 600 jobs in Hong Kong last year, Cathay Pacific Airways is looking at restructuring its overseas operations to further ward off competition from budget carriers and mainland China airlines.

The South China Morning Post (SCMP) reported Cathay would consolidate overseas sales, marketing, cargo and airport operations functions in some cities, with an unspecified number of jobs lost, citing an unnamed source.

The airline posted a net loss of HK$1.26 billion (US$160.5 million) in 2017. As part of its restructuring, Cathay is seeking to trim costs by more than HK$4 billion over three years.

Overseas operations include North-east Asia, comprising Japan, Taiwan and South Korea.

The restructuring process has yet to be finalised, Cathay Japan said, in the statement to Bloomberg. A spokeswoman at Cathay’s South Korean office said it was undergoing structural changes in line with what had been done at the Hong Kong headquarters and declined to specify whether there would be job losses, added the Bloomberg report. Taiwan operations would follow the structure set by the head office, Cathay’s Taipei office said.

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