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Chinese state-run companies have told employees to avoid taking Cathay Pacific Airways flights, according to people familiar with the matter, widening the fallout for Hong Kong’s dominant air carrier after workers took part in anti-Beijing protests and strikes. China Huarong International Holdings, a unit of the country’s largest bad-debt manager by assets, sent out a message to workers on Friday to choose airlines other than Cathay or its Dragon Air unit when flying on business or personal trips, said the people, asking not to be identified discussing a private matter. Finance-to-brewing conglomerate China Resources National Corp. gave similar directions to employees, according to two of the people. Cathay has become the most visible corporate target for China amid the protests, with its aviation regulator issuing a swathe of demands late Friday, including barring staff who had taken part in the demonstrations from flying to the mainland. Cathay shares slumped to a 10-year low Monday, as Beijing loses patience with the demonstrations. The boycotts from state-backed firms serve as a reminder of the ways China can apply enormous economic pressure on companies and countries that fall out of favour, with Korean and Japanese companies targeted in recent years. It wasn’t immediately clear whether other state-backed Chinese companies had issued similar directives to staff as Huarong and China Resources. In a message to the airline’s staff on Monday, Chief Executive Officer Rupert Hogg said the company plans to fully comply with CAAC’s demands and warned that the carrier will discipline employees who “support or participate in illegal protests” with penalties including termination of employment.<br/>

A US federal court Monday issued a permanent injunction against American Airlines Group’s mechanics union, which the airline had accused of illegal slowdowns it said had devastated its operations during the peak summer travel season. The judgment, issued in the United States District Court for the Northern District of Texas, made permanent an earlier order against the TWU-IAM Association demanding the workers stop interfering in American’s operations. American filed a lawsuit in May against the union group after stalled contract negotiations that were being overseen by a federal mediator. At the time, American said alleged disruption by the mechanics had caused hundreds of flight cancellations and even more maintenance delays. The union group denied the accusations in court. Monday’s order prohibits employees from “calling, permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any form of disruption to or interference with American’s airline operations,” including a refusal to accept overtime or complete any maintenance repairs in the normal course of work.<br/>