Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Cathay Pacific union warns of higher fares caused by fewer staff

Stock Markets Oct 06, 2022 04:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Cathay Pacific aircraft takes off at the airport, during the coronavirus disease (COVID-19) pandemic in Hong Kong, China, March 31, 2022. REUTERS/Tyrone Siu
 
SINGY
+1.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Jamie Freed

(Reuters) -Cathay Pacific Airways Ltd faces unprecedented staffing and training shortages that will keep airfares high and impede Hong Kong's return to its role of global aviation hub, a pilots' union said on Thursday.

A record number of resignations among the company's most experienced pilots leaves the airline unprepared to fully resume operations and failing to meet resurgent demand, the Hong Kong Aircrew Officers Association (HKAOA) said.

"Cathay Pacific ... is currently facing unprecedented staffing and training shortages," it said in a statement that forecast a rise in airfares amid a situation of low supply and strong demand.

Cathay, which plans to hire 4,000 more staff over the next 18 to 24 months as travel rebounds, said adding more flights was a priority but it would take time to train crew and reactivate aircraft.

"We remain focused on building connectivity between Hong Kong and the world as swiftly as we possibly can," the airline said in a statement responding to the union comments.

Last month, Cathay said it expected to reach a third of pre-pandemic passenger capacity by year-end, exceeding its previous estimate of a quarter, after crew quarantine rules were eased.

In contrast, rival Singapore Airlines (OTC:SINGY) Ltd expects to reach 81% of its 2019 capacity levels by then.

Along with its subsidiaries, Cathay had 20,800 employees globally by June 30, down from 34,200 at the end of 2019, after cutting thousands of roles during the pandemic.

At a webinar on Wednesday, John Grant, chief analyst at travel data firm OAG, said Hong Kong was likely to eventually restore its status as a global aviation hub, given its proximity to mainland China, but the process would not be quick.

Capacity at Hong Kong airport this week is 81% below 2019 levels, versus a decline of 38% in Singapore and a fall of 22% in Sydney, OAG data showed.

At Cathay, pilot attrition has been higher than normal after more than two years of onerous quarantine norms, combined with permanent pay cuts of as much as 58%.

The airline said it believed its pay contracts were competitive, citing its ability to recruit and retain pilots as it rebuilt its schedule.

"We already recommenced recruiting locally based pilots in summer last year, including some 200 eligible, qualified pilots for Cathay Pacific, and altogether about 300 for the group's airlines," the company said.

Hundreds of Hong Kong-based pilots were put out of work in 2020 when Cathay closed its regional carrier, Cathay Dragon.

Cathay Pacific union warns of higher fares caused by fewer staff
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email