Hong Kong's Cathay Pacific Airways said Wednesday it would cut 5,900 jobs and end its regional Cathay Dragon brand as it grapples with a plunge in demand from the coronavirus pandemic. The restructuring will cost HK$2.2b ($283.9m) and the airline will also seek changes in conditions in its contracts with cabin crew and pilots, it told the stock exchange. Overall, it will cut 8,500 positions, or 24% of its normal headcount, but that includes 2,600 roles currently unfilled due to cost reduction initiatives, Cathay said. “The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive,” Cathay CE Augustus Tang said. The airline, which has stored around 40% of its fleet outside Hong Kong, said on Monday it planned to operate less than 50% of its pre-pandemic capacity in 2021. After receiving a $5b rescue package led by the Hong Kong government in June, it had been conducting a strategic review that analysts expected would result in major job losses because it has been bleeding HK$1.5b to HK$2b of cash a month. The restructuring will stem the cash burn by HK$500m a month in 2021, the airline said, adding executive pay cuts would continue throughout next year. The decision to end regional brand Cathay Dragon is in line with rival Singapore Airlines' pre-pandemic move to fold regional brand Silkair into its main brand. Cathay Dragon, once known as Dragonair, operated most of the group’s flights to and from mainland China and had been hit by falling demand before the pandemic due to widespread anti-government protests in Hong Kong that deterred mainland travellers. Cathay said it would seek regulatory approval to fold the majority of Cathay Dragon’s routes in Cathay Pacific and low-cost arm HK Express.<br/>
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Finnair has reached an agreement to cut 700 jobs – more than 10% of its workforce – as it grapples with the impact of the coronavirus pandemic. Some 600 of the cuts will be Finland-based employees, while 100 will be overseas staff. The announcement marks the completion of the “co-operation process” – announced in late August – which is required under Finnish law when a business wishes to reduce its workforce. The carrier had proposed cutting up to 1,000 positions, but notes that it was “able to find savings solutions which helped us to save approximately 150 jobs”. It states that the cuts do not affect cabin or cockpit crew. Speaking in early October, Finnair CE Topi Manner said that the permanent job cuts would be “directed to our land operations and headquarters operations”. Manner added that Finnair has around 80% of its staff furloughed under Finland’s comprehensive job-support scheme. The airline confirms today that “the temporary layoffs may continue for a long time as the recovery of aviation will take several years, according to the industry estimates”. When the negotiations began, Finnair said they involved some 2,800 of the Oneworld carrier’s 6,200 Finland-based employees, plus around 500 staff based abroad.<br/>
Southwest and American Airlineshave scrapped their annual staff Halloween parties because of the coronavirus pandemic, suspending revered traditions amid an unprecedented industry slump. “You all know Halloween celebrations will look differently this year,” Southwest CEO Gary Kelly said in his weekly message to employees. “Please remember to wear your masks while having fun with one another and our customers,” Kelly said in the Monday message. This is the first time Southwest has canceled its parties since 2001. At American, this will be the first Halloween without a party and trick-or-treating by employees’ children since the carrier acquired US Airways in 2013. CEO Doug Parker -- whose birthday is on Halloween -- imported the annual celebration from the smaller carrier, which had inherited it from merger partner America West. In the past, he’s joined other American executives in costume, including dressing as musicians Keith Richards, Billy Ray Cyrus and Boy George. Employees at the carrier’s Fort Worth, Texas, headquarters can dress up for the day, as can airport customer-service and gate agents, said spokesman Matt Miller. The cancellation “is primarily because of the fact that we have 19,000 people on furlough -- not a very celebratory time,” he said.<br/>