Tuesday, 26 May 2020 11:42 AM MYT
The airline is looking to cut costs, streamline marketing and consolidate pilot contracts around Cathay Pacific and low-cost arm HK Express, the sources said on condition of anonymity.But the Civil Aviation Administration of China would view such a move as an expansion and could block Cathay from keeping access to 20 mainland routes flown only by Dragon.
During that period, Cathay’s chief executive resigned and the brand received enough demerit points for minor infractions under the strict CAAC system that the regulator can deny an application to add mainland destinations and aircraft, including Dragon’s, three sources said. “Given the very dynamic situation we are currently in, we are not taking anything off the table and we can’t rule out anything to ensure our airline business will come out from the crisis stronger and more competitive,” the company said in a statement.The regulatory pushback has contributed to weeks of delays in Cathay’s plans to meet with its pilot’s union to discuss structural changes it first flagged to them in a letter on April 22, the sources said.