Cathay Pacific’s Australian pilots stranded by Australian base exit

Cathay Pacific has axed its Australian base, leaving 121 pilots out of a job unless they move to Hong Kong and get a Chinese work permit.

Hong Kong carrier Cathay Pacific will close its Australian base next month, leaving 121 pilots out of a job unless they are willing to move to the Chinese territory.

The decision was delivered via email to pilots, hours after another message announcing the airline was recruiting first and second officers in Hong Kong.

Although the news was not unexpected, the pilots were crushed to learn their careers with Cathay were as good as over – in many cases after decades of service.

More than 40 of those affected are based in Melbourne, 27 are in Sydney, 26 in Brisbane, 15 in Perth and nine in Adelaide.

The closure of the Australian base was first flagged by Cathay following the end of the JobKeeper allowance in March.

Despite employees of other foreign-owned companies being denied access to the payment, Cathay Pacific’s Australian pilots were paid the allowance for the duration of the scheme.

When JobKeeper ended, the pilots were stood down on no pay by Cathay while the Australian base was reviewed.

The final decision delivered by aircrew general manager Deborah McConnochie apologised for “not being able to find an alternative”.

“This is not a decision we have made lightly and is not a reflection on the performance of our Australian-based pilots,” said Ms McConnochie.

“We will now do all we can to support you through this process.”

Two options were offered, including a redundancy package or relocation to Hong Kong, which would involve obtaining a work permit from the Chinese government.

Cathay Pacific was also set to close its bases in Canada and New Zealand, after slumping to a crippling $3.6 billion loss in 2020 and placing scores of aircraft in storage at Alice Springs.

Scores of Cathay Pacific aircraft are among those in storage at Alice Springs. Picture: Ted Zheng

Prior to the Covid crisis, Cathay Pacific carried more than 150,000 passengers a month between Australia and Hong Kong, on 344 return flights.

In March 2021, the airline operated just 30 return flights, transporting less than 400 passengers.

On services into Australia, less than 5 per cent of seats were filled.

Along with nine other carriers, Cathay Pacific has received funding from the Australian government to operate freight flights, to ensure exporters can still get their produce to key markets like Hong Kong.

Since May 2020, more than $11 million has been paid to Cathay Pacific under the International Air Freight Mechanism which was recently extended until September.

However the airline did not qualify for the government’s $2 billion international aviation support measure, to the fury of some pilots.

One, who wrote to Deputy Prime Minister Michael McCormack, pointed out that they paid taxes in Australia and should be treated the same as Qantas and Virgin Australia pilots.

Mr McCormack’s office responded that the support measure was about “retaining a core Australian international aviation workforce and operational capability”.

“The government considers that assistance for international operators of passenger services is best addressed through airlines working with their home country’s governments to determine the appropriateness and extent of assistance measures,” replied Mr McCormack’s chief of staff.

Late Wednesday Mr McCormack said it was encouraging 35 international airlines continued to fly to Australia, including Cathay Pacific.

China Southern Airlines has also closed its Australian base, with the 14 cabin crew offered the option to move to China on contracts worth as little as $400 a month.