A paid long-term leave arrangement will be offered to staff at Hong Kong Airlines and employees will move offices, as the company seeks to cut costs to stay afloat during the COVID-19 pandemic.

The airline’s chairman, Hou Wei, said in an internal letter to employees that Airbus A320 pilots would receive one month of fixed salary for six months of leave and two months of fixed salary for nine months of leave.

The A320 fleet will be grounded for one year from July 2021, Hou said.

In the letter, Hou said that “in view of the low travel demand in the foreseeable year,” the company planned to keep its active fleet to around eight Airbus A330 aircraft to support its belly cargo operation and limited passenger services.

The letter said that existing unpaid leave arrangements would continue until further notice, and all employees working at the airline’s head office in Tung Chung would move to the HKA Training Academy at Hong Kong International Airport.

Trade union representative Wong Yu-loy said he believed that the retention of only eight aircraft was akin to over 1,000 employees being laid off.

Wong added that Hong Kong Airlines had suffered financial difficulties for many years and had already been downsizing. With the added impact of the pandemic and the lack of government intervention, the current restructuring would leave employees suffering, he said.

Hou’s letter to employees said that the airline’s business had been severely affected by social unrest followed by the pandemic, and Hong Kong Airlines was now in “critical survival mode.”

“I deeply regret for those who would be affected but have to stand firm on this decision in order to secure Hong Kong Airlines’ future,” Hou said. “The ongoing pandemic remains unpredictable but Hong Kong’s resilience in overcoming past crises is our reminder that a bright future prevails.”

As the pandemic continues to rage, other airlines in Hong Kong, including Cathay Pacific and HK Express, have also introduced similar paid leave plans.

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