return icon Vietnamnet.vn

Coronavirus: Cathay Pacific asks staff to take unpaid leave

Hong Kong-based Cathay Pacific wants staff to take three weeks leave to help cope with Coronavirus.

Hong Kong's flagship airline Cathay Pacific has asked staff to take three weeks of unpaid leave to help it cope with the impact of the coronavirus.

The carrier had already been hit by the effect on passenger demand of several months of anti-government protests in Hong Kong.

It has offered a voluntary special leave scheme to all employees from 1 March to 30 June.

The airline said that preserving cash was "key to protecting" its business.

On Tuesday, Cathay said it intended to cut services by about 30% over the next two months, including a cut of about 90% in flights to mainland China. 

The airline had already been facing difficulties because of anti-government protests in Hong Kong, an international financial and travel hub and a key part of its business.

Analysts said the airline had been likely to offer the unpaid leave scheme to staff because of those issues anyway.

The new coronavirus causes severe acute respiratory infection and symptoms usually start with a fever, followed by a dry cough. The number of cases in China has now exceeded 24,300, with 490 deaths reported.

Other developments

  • European aircraft manufacturer Airbus said it was "observing Chinese government requirements for staff to work from home" and had closed its Tianjin assembly line
  • At least 10 people on board the Diamond Princess cruise ship in the Japanese port of Yokohama have tested positive for the virus, but with many still to be tested the number of those infected could rise
  • Sportswear firm Adidas said it was "experiencing a negative impact" on its operations in China and that it had closed a "significant number" of its own stores in the country
  • Danish brewer Carlsberg said there could be a short-term impact in China on the firm as a result of the virus and warned it faced a "more volatile business environment" as the coronavirus outbreak spread
  • Crude oil price falls to its lowest level in 12 months amid declining demand in China

In a statement, Cathay said: "In view of the Novel Coronavirus outbreak and also significant drop in market demand, we just announced massive capacity cuts yesterday.

"Preserving cash is the key to protecting our business. We have already been taking multiple measures to achieve this.

"Today, we are appealing to all employees to participate in the special leave scheme, which will take effect from 1 March and last until 30 June. All employees will have the option to take three weeks of unpaid leave in this period."

Cathay chief executive Augustus Tang has sent a video message to employees, according to the Reuters news agency.

In it, he said the airline had also asked its suppliers to cut prices, stopped hiring new staff and postponed some major projects and stopped all non-critical spending.

The new coronavirus causes severe acute respiratory infection and symptoms usually start with a fever, followed by a dry cough. The number of cases in China has now exceeded 24,300, with 490 deaths reported. BBC

MORE NEWS

Vietnamese network operators now manufacturing cameras

Most cameras provided in the local market are foreign made.

Vietnam’s most modern library

Located at National Economics University, the most modern library in Vietnam covers around 10,000 square metres and is funded by the World Bank through the Support for Autonomous Higher Education Project.

China purchases more Vietnamese fruit for lunar new year holiday

Chinese demand for fruit for the lunar new year holiday accounts for up to 50 percent of Vietnam’s total fruit exports. Experts warn that the products may get stuck at border gates.

Press agencies need to become technological institutions: minister

Twenty years ago, editors-in-chief took pride in the fact that while printing machines were working, distributors were sitting eating bread and waiting for the first newspapers to be put out to deliver.

VIETNAM BUSINESS NEWS DECEMBER 4

Vietnamese innovative startups should strive to become regional, international “unicorns”: PM

Seven more prosecuted in bribery case at foreign ministry

The investigation agency under the Ministry of Public Security has issued decisions to prosecute, arrest and search the residences and workplaces of seven more individuals for their involvement in a bribery case at the Ministry of Foreign Affairs.

VIETNAM NEWS HEADLINES DECEMBER 4

President arrives in Seoul, beginning state visit to RoK

IFC plans to pour 320 million USD into three Vietnamese banks

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed a total investment of 320 million USD in three Vietnamese banks, reported the Nikkei Asia.

Girl with brittle bone disease opens class for poor students

As she wasn't able to fulfil her dream of becoming a teacher due to congenital vitreous disease, Nguyen Thi Ngoc Tam opened a free class for poor students.

Miniature-human sculptures popular with customers

The price of a sculpture ranges from one to five million VND, depending on the difficulty of the model. Eight to 19 ordered products are made per day to guarantee progress as well as the quality of the sculpture for the customer.

Lacquer village outlasts centuries-old craft

Alongside a wide range of products made from natural materials such as wood, bamboo and rattan, the village also has created new gold- and silver-inlaid products made from ceramic, pottery, and composite.

Local firms do business in P2P lending market

P2P Lending has become a hot issue in Vietnam, especially with the participation of Chinese businesses.

Vietnam to hold first cat fish festival soon

Vietnam’s first cat fish festival is scheduled to take place in the southern province of Dong Thap on December 16-17.

Control of bad content on social networks should be tightened

Tik Toker No O No, who criticized the poor, was boycotted by the community and forced to shut down by the authorities. He is not the first Tik Toker that has posted bad content on social networks.

Businesses struggle to keep workers as exports slow

Businesses have been struggling to maintain and support their workers as the Lunar New Year approaches.
back_to_top