The flag carrier of Hong Kong, Cathay Pacific Airways has announced to operate less than 50 percent of its pre-pandemic passenger flight capacity in 2021.
According to the details, this moves came after the company projected major job losses, Cathay Pacific Airways said it will operate less than 50 percent of its pre-pandemic passenger flight capacity in 2021.
In addition to this, the airline said it planned to operate around 10 percent of its pre-pandemic capacity for the remainder of 2020.
Cathay said, “Among the multiple scenarios studied, this one is already the most optimistic that we can responsibly adopt at this moment.”
In the retrospect, airline’s passenger numbers fell by 98.1 percent in September as compared with a year earlier, though cargo carriage was down by a smaller 36.6 percent.
Let it be known that the airline industry has been hard hit by the coronavirus pandemic as many countries imposed travel restrictions to contain its spread. Many of the curbs still remain in place.
In June this year, Cathay Pacific Airways offered the $5 billion recapitalization plan to help it endure the coronavirus pandemic.
Cathay Pacific said the plan calls for it to issue shares to raise more than 33 billion Hong Kong dollars (over $4.3 billion).
Of that total, about 20 billion Hong Kong dollars ($2.6 billion) would be issued to a new, government-controlled group to be called Aviation 2020.
The airline also would receive a 7.8 billion Hong Kong dollar ($1 billion) loan from Aviation 2020.
Financially unstable Cathay Pacific, proposed the bailout as it strives to survive the near-collapse of regional travel due to the coronavirus pandemic.
Political pressures from China also led to the resignation of Cathay Pacific’s CEO Rupert Hogg after some of its employees were found to have joined the protests.
The airline said the plan was in response to the outbreak of the global COVID-19 pandemic which has created significant challenges for the airline industry.”