MIAMI – In a redundancy procedure that launched today, Hong Kong Airlines (HX) has opted to lay off of 700 its employees.
Only 100 to 200 employees are expected to remain following the layoff. Employees of all ranks, including flight pursers and senior pursers, are expected to be affected by this layoff. A large number of junior flight attendants are also expected to be dismissed, according to sources.
Some staff have received the notice of termination already, which indicated July 31 as the end date of employment.
Comments from the Airline
A spokesperson for the airline, in response to a media inquiry, stated the business was in survival mode and that it was vital that they became a slimmer and more efficient organization.
“The reduction of our staff surplus within the new operating structure is addressed in several steps by merging departments and simplifying employment duties,” says the airline. The spokesperson stated that these measures include the initiation of a separate Long Pay Leave Scheme for employees and redundancies.
The Airline has pointed out that about 600 scheme applications have been authorized for HK-based staff and that they are reimbursed in accordance with their service terms and local employment legislation. It also stated that senior management salaries will be further reduced, ranging from 15% to as much as 36%, depending on job grade.
According to records, HX received a subsidy of HK$150m from the government’s employment support scheme. Despite this, 650 employees were laid off in two layoffs prior to and after the plan.
The Hong Kong Aviation Ground Services Ltd has stated that it will discontinue operations on July 1st, affecting 240 employees.
Featured image: Hong Kong Airlines B-LGH Airbus A350-941. Photo: Brandon Farris/Airways