30th June 2020 – (Hong Kong) Cathay Pacific Chief Executive Officer, Augustus Tang sent a letter to employees saying that more than 90% of employees participated in the second round of unpaid leave plan, which is higher than the first round of planned participation rate, reflecting the common desire of employees to support the survival of the company in the longer term.
Tang mentioned in the letter that the Group faced great challenges and the recovery progress was slow. There are still arduous decisions to be made in the future to ensure the company’s competitiveness, but it still hopes to gradually upgrade flights and waypoints with the permission of the market and regulators. Cathay Pacific announced a capital reorganisation plan of HK$39 billion earlier this month, which will issue preferential shares and separate warrants to the government, and provide the government with a HK$7.8 billion transitional loan, involving a total of more than HK$27 billion, and will be distributed to existing shareholders. There will also be Rights issue of HK$11.7 billion.
Cathay Pacific has also participated in the EMPLOYMENT SUPPORT SCHEME and is expected to receive more than HK$700 million to subsidiSe wage expenses from June to August, but in the face of a monthly loss of HK$1 billion, it still has to save expenses. At the beginning of the year, Cathay Pacific had asked employees to take unpaid leave for 3 weeks, and the second round of similar measure will begin next month, also for a period of 3 weeks. In addition, the cabin crew will cut their salaries by 11% starting next month.