Cathay Pacific Airways is drawing up plans to axe up to 15% of its ground staff across the network and dispose of seven Boeing 747-200s, in the face of declining profi ts and traffic figures.
A senior source at Cathay says that the airline's Hong Kong-based general managers and offshore country managers are being instructed to reduce staffing levels by an average of 15% by April 1998. The airline employs around 15,700 staff worldwide, of which close to 8,800 are non-flying positions.
The planned cuts are to coincide with Cathay's move to Hong Kong's new airport at Chek Lap Kok and will include previously announced plans to outsource ancillary operations, such as office management and transport and, possibly, ramp services. Cathay will only say that a review is required "in light of [recent] conditions."
The airline has confirmed, however, that it is discussing selling its fleet of seven Rolls-Royce RB.211 524-powered Boeing 747-200s. Virgin Atlantic, United Airlines and Qantas are believed to be among those interested.
Source: Flight International
