Fears rise of Cathay layoffsBusiness | Carrie Chen 16 May 2017
Cathay Pacific Airways (0293) may start a large-scale layoff of back-office staff as early as this Friday, the Hong Kong Economic Times reported.
It noted though that the imminent layoffs will not involve about 13,000 frontline staff, such as pilots and flight crew. The focus will instead be on culling up to 10,000 back-office staff.
Managerial jobs will also be slashed starting Friday and those in more senior posts may get the ax on Monday.
The report claimed that laid-off staff may receive compensation equivalent to up to 12 months' pay, three months of medical care after layoff and discounts on Cathay air tickets for one year.
Cathay did not comment on reports about mass layoffs, but has said it is creating a new management structure that is leaner, faster and better.
"There will be changes and, in due course, we will talk about them publicly. However, at the moment, our priority is talking with our people," said a Cathay spokesman.
Meanwhile, AirAsia entered into an agreement with China Everbright Group and Henan Government Working Group to set up a joint venture low- cost airline in China to be known as AirAsia (China).
The joint venture will based in Zhengzhou. AirAsia will invest in relevant infrastructures, including an exclusive terminal and an aviation institution.
China Southern Airlines (1055) said passenger capacity increased 7.45 percent in April from a year earlier.