'Cathay Dragon Layoff Benefits Greater Bay Airlines'

The chairwoman of the Confederation of Trade Unions, Carol Ng, has accused the government of taking a hands-off approach when dealing with the suspension of Cathay Dragon to benefit newcomer Greater Bay Airlines, but a rival union's leader dismissed it as groundless charge.

In a major restructuring to help the company survive the Covid-19 pandemic, Cathay Pacific axed its Cathay Dragon regional subsidiary and laid off all 2,500 employees of the airline.

Mainland tycoon, Bill Wong from East Pacific Group, had applied for a licence in July for the new Greater Bay Airlines to operate in Hong Kong, reportedly aiming to operate flights to the mainland, Southeast Asia and East Asia.

Speaking on RTHK’s City Forum, Ng, who was a flight attendant, cast suspicion over the timing of the Cathay Dragon’s closure and the emergence of the Greater Bay Airlines.

“You really think that the closure of Cathay Dragon has nothing to do with Greater Bay Airlines? … Why does the timing of everything fit so perfectly?” she asked.

Ng said the government's attitude has prompted such speculations, as it has done little to help the employees, and has just said it is sorry to see the situation.

She said the government is giving the public a perception that it is “eliminating one company, to make way for another”.

“When this new carrier comes in, and the whole [Cathay] Dragon Air is gone. They are taking away these traffic rights... Don’t forget the one who controls the traffic rights is always the government. The government should have known what is going to happen,” she said.

The owner of the Greater Bay Airlines had said he will fight for the routes previously flown by Cathay Dragon, and Ng said the newcomer is also expected to scoop up experienced staff whom Cathay Dragon laid off.

But she said it is unclear whether the terms offered by the Greater Bay Airlines can really attract the fired employees, and whether the new airline can survive long in view of the global economic situation and worldwide travel restrictions.

Speaking on the same programme, Federation of Trade Unions lawmaker Michael Luk said people should not divert to groundless conspiracy theories.

He said Cathay Pacific would not benefit from axing its subsidiary, and lowering its cost should be its biggest concern.

Greater Bay Airlines also would not know that Cathay Dragon would be shut down, Luk said, adding that a long time is needed for the airline’s owner to plan and prepare for its launch.

The pro-Beijing legislator said the new airline, as well as Cathay's major shareholders Swire Pacific and Air China, should consider absorbing staff who were fired.

Asked if he mentioned the issue of Cathay Pacific’s massive layoffs to his party colleague, under secretary for Labour Ho Kai-ming, Luk said he has not done so, but has raised concern to the government.