Cathay Pacific warns new Covid-19 quarantine for aircrew could slash passenger flights by two-thirds and cost company HK$400 million a month

Name: Travel bubbles hit a snag amid global Covid-19 peak, says Hong Kong commerce minister Edward Yau
Uploaded: 2021-01-25T09:59:24.000Z
Duration: 9 min 8 s
Description: Travel bubbles hit a snag amid global Covid-19 peak, says Hong Kong commerce minister Edward Yau

Hong Kong government plans to impose 14-day quarantine and seven-day medical surveillance on all aircrew

Airline says move could have dire consequences for passenger and cargo business

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Cathay Pacific has said the plan to impose quarantine on aircrew could hurt its passenger and cargo business. Photo: Nora Tam

Danny Lee

Published: 5:59pm, 25 Jan 2021Updated: 9:30am, 26 Jan 2021

Cathay Pacific Airways has warned a plan by the Hong Kong government to impose a 14-day quarantine order and seven-day medical surveillance on its crew because of Covid-19 would force it to cut its passenger flight capacity by almost two-thirds.

The airline said on Monday it might have to axe a quarter of its moneymaking cargo capacity, and predicted the new measure could increase its monthly cash burn by HK$400 million to HK$1.9 billion (US$ 245 million), unravelling the HK$500 million saved every month by making 5,900 people redundant and axing Cathay Dragon last year.

Confirming a Post report last week, Cathay’s dire warning comes ahead of tighter restrictions on aircrew expected to be implemented in February, which will disproportionately hurt Hong Kong’s largest airline the most.

Executive director Ronald Lam Siu-por said the tough measures would have a “significant impact” on the airline’s ability to service passenger and cargo markets.

“The actual extent of such impact is yet to be confirmed and will be affected by a number of factors, including the success of mitigation measures we are able to adopt, such as agile manpower resources management,” said Lam, in a newly released monthly business report for December 2020.

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Travel bubbles hit a snag amid global Covid-19 peak, says Hong Kong commerce minister Edward Yau

Not all flights are expected to be affected, the airline’s management said in a memo to staff.

Cathay Pacific warns new Covid-19 quarantine for aircrew could slash passenger flights by two-thirds and cost company HK$400 million a month

Hong Kong government plans to impose 14-day quarantine and seven-day medical surveillance on all aircrew Airline says move could have dire consequences for passenger and cargo business

Hong Kong government plans to impose 14-day quarantine and seven-day medical surveillance on all aircrew

Airline says move could have dire consequences for passenger and cargo business