As part of restructuring its business, Hong Kong-based Cathay Pacific is closing its cabin crew base in Toronto.

As reported in the South China Morning Post, the airline stated the Toronto base was “not commercially viable,” and later reports stated that the 120 affected workers would not lose their jobs. The airline is also working with its labor union to “explore options” for the affected crew members to other parts of Cathay Pacific’s network.

The crew base closure is part of Cathay Pacific’s review of its business as it faces stiff competition from within the region such as the main Chinese airlines and low-cost carriers. Over the last three years, the airline has sought to eliminate over HK$4 billion (US$510 million) in costs which has included job cuts, early retirement packages for Japan-based employees, and seat reductions on aircraft.

Cathay Pacific is one of a few airlines in the region with flight attendant bases outside of its hub of Hong Kong in cities such as London, New York, Los Angeles, San Francisco, Vancouver, Bangkok and Singapore. Among the largest contingent of foreign based flight attendants in the United States, which has been reported to be around 400 staff. There is currently no indication that any action will be taken for the others.

While the Toronto base will close, the Canadian Union of Public Employees (CUPE) – which represents Cathay Pacific’s employees in Canada including its Toronto and Vancouver bases – reacted to the closures in a statement saying: “This latest news, and the lack of consultation surrounding the decision, reflects a disturbing pattern of indifference by the company toward its loyal employees.”

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