Troubled Hong Kong Airlines on Thursday confirmed a major restructure that will see staff redundancies, new pay packages and some employees offered long-term leave.
The company didn't say how many jobs would be affected, but did reveal that its active fleet for the next year would consist of just eight Airbus A330 aircraft, mostly for cargo, with its A320 fleet to be grounded for a year from next month.
"With the collapse of air travel and no recovery in sight, an organisational restructure deemed to be executed together with out ongoing consolidation dive can no longer be delayed," airline spokesman Martin Mak told RTHK.
"It is imperative to transform Hong Kong Airlines into a leaner and more efficient organisation now to ensure that we can continue to operate sustainably in the challenging years ahead."
The restructure will include merging departments and consolidating some roles. An unpaid leave scheme will remain in place, and employees at the airline's offices at Citigate in Tung Chung will move to its training academy tower in August.
The airline says it will also offer a "long pay leave scheme", under which staff can receive a months' pay for taking six months off or two months' pay for nine months off. It will also introduce a new remuneration scheme for pilots, but did not specify details.
The airline had been under pressure even before the pandemic, launching a range of cost-saving measures in December 2019.
Its parent company, HNA Group, has also faced severe financial pressure after years of acquisitions and expansion. In January, a creditor initiated legal action seeking a restructure on the mainland.