The airline industry has been dealt a severe blow by the global pandemic and Taiwan's two largest airlines are allowing employees to take leaves of absence. Starting May, China Airlines also implemented a shorter workweek that will continue through July. Princess Cruises, a subsidiary of the world's largest cruise company, has also announced the cancellation of summer voyages.
Princess Cruises has announced the cancellation of summer voyages due to closed harbors around the world. Diamond Princess voyages departing from Japan have been canceled until autumn and the eight Majestic Princess voyages departing from Taiwan in July have all been canceled as well. The company's agent in Taiwan says it has started processing refund applications.
There were early-bird discounts running at the beginning of last year and summer cruises are always popular. Our booking rate was therefore 70 or 80 percent.
The agent says cruises in Taiwan are packaged like charter ships and payment on summer cruises was due at the end of last year. Whether cruises will resume in August remains unknown.
Taiwan's two largest airlines, meanwhile, have started accepting leave applications. China Airlines implemented a four-day workweek this month for at least three months.
The union agreed to a shorter workweek and the company agreed not to lay anyone off. Of course, if the situation worsens this is still a possibility. Negotiations are continuing to clarify certain points.
According to a corporate memo, China Airlines cut the wages of executives by 25 percent and the wages of second- and third-tier managers by 20 percent. All other employees got a pay cut of 15 percent. These adjustments will save the airline NT$450 million over the next three months.