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Hong Kong’s troubled flagship airline Cathay Pacific said yesterday that it would slash staff costs by 30 per cent as part of a major overhaul in the wake of losses. 
The announcement came after the company posted its first net loss in eight years on Wednesday, saying it had been hit by intense competition and a drop in demand from business travellers. 
Cathay had already revealed its biggest shake-up in 20 years in January, saying some jobs would go but providing little detail. 
In a statement yesterday, it said middle and senior management at its Hong Kong head office would be targeted as it sought to cut employee costs by almost a third, although it gave no further indication of how many jobs could be axed. 
“It is clear that there is a need for an organisational structure that will allow the Cathay Pacific Group to succeed,” the statement said. 
It added that the company was seeking to create a “leaner, simpler structure” and that management changes would be announced in June. 
The move is part of a three-year “transforma?tion programme” designed to breathe new life into the airline.
Cathay has been struggling despite an expansion of international air travel in the region as lower-cost carriers, particularly from mainland China, eat into its market share.
The airline is also losing premium travellers as it comes under pressure from Middle East rivals that are expanding into East Asia and offering more luxury touches.
That has led to promotional prices for Cathay’s top tickets as they are sold to leisure travellers. 
Its US$74-million (Bt2.58 billion) net loss in 2016 reversed a $773-million profit in the previous year, with chairman John Slosar warning that 2017 would be similarly “challenging”.
It was the company’s first annual loss since the height of the US-led financial crisis in 2008. – AFP

VIETJET THAILAND ADDS CHIANG MAI FLIGHTS

VietJet Thailand has added flights to its Bangkok-Chiang Mai route. 
The airline will begin flying between Bangkok and Chiang Mai three times daily from March 26 onwards and will increase that frequency to four flights daily from April 6. 
In addition, VietJet Thailand is encouraging passengers to celebrate Songkran with its latest “Fly Now” promotion. VietJet is offering 30,000 tickets starting from Bt289 return, excluding taxes, airport fees and surcharges.