Albert Cheng

Opinion | Crumbling Cathay no longer flies the flag for Hong Kong’s aviation dream

The airline has struggled to find its feet post pandemic, cancelling flights in peak season, cutting standards for its pilot captains and entering the budget flights market

After a government bailout, swingeing staff cuts and serious service lapses, Cathay can no longer be considered a premium airline

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A Cathay Pacific Airways plane takes off at Hong Kong International Airport on January 11. The airline seems to be set on a disappointing downward trajectory. Photo: Dickson Lee

Albert Cheng

Published: 9:30am, 8 Feb 2024Updated: 9:58am, 8 Feb 2024

Is Cathay Pacific Airways past its prime? Its recent performance raises questions whether this 78-year-old airline can drive Hong Kong in the race to retain the city’s status as a premium aviation hub in the Asia-Pacific.

The Hong Kong Airport Authority recently raised HK$5 billion (US$640 million) in retail bonds to fund capital expenditures, including its third runway project. Public response has been overwhelming. But hardware aside, it is also vital for the city’s flagship carrier to deliver. Yet Cathay Pacific seems to be set on a disappointing downward trajectory.

Founded in 1946 by two former air force pilots, Cathay started off with a converted Douglas DC3 called Betsy. When I left the company’s affiliated maintenance operation in 1968, the Cathay fleet had increased to eight aircraft. It then took off with a reputation for safety, reliability and friendliness.

Its success could be attributed primarily to the professionalism of both its cockpit and cabin crew. The airline took pride in its highly trained British and Australian pilots. Its pool of stewardesses was a mix of smiling faces from Hong Kong and elsewhere. Passengers did not mind paying 10-20 per cent more for the quality, reliability and friendliness. Cathay was the first choice for many, especially Hongkongers. This is sadly no longer the case.

Air travel plunged during the pandemic. In December 2020, for example, Cathay’s passenger numbers fell by 98.7 per cent year on year. In June 2020, the Hong Kong government rescued Cathay with a HK$27.3 billion bailout.

Pay cuts, redundancies and voluntary unpaid leave ensued. Cathay laid off almost 6,000 employees in October 2020. In total, the airline cut nearly a quarter of its positions. On top of that, according to the Hong Kong Aircrew Officers Association, which represents Cathay pilots, an estimated 1,000 pilots have resigned over the past few years.