Hong Kong Airlines said on Friday that it’s been forced to slash hundreds of occupations and inquire staying staff to take unpaid leave because the coronavirus outbreak chemicals problems in the already-struggling company.

The announcement from the town’s number two company comes days following Cathay Pacific said it had requested all of its 27,000 workforce to take three months’ leave without wages between March and June due to falling demand brought on by the health emergency.

The virus epidemic comes as the town was unable to recuperate from months of sometimes violent protests that battered the market and gutted the crucial tourism industry.

Hong Kong Airlines said in a statement which rigorous entrance and precautionary measures imposed by nations around the globe have further affected travel demand in town and the company had to take”vigorous steps” to mitigate the challenges.

The company said it will lay off 400 workers, with the rest requested to have no less than fourteen days no-pay depart per month or two operate three days each week from February 17 before the end of June.

“There’s never been a harder period in Hong Kong Airlines’ background as of today,” the firm said in an email statement to AFP.

“As doubt looms together with the evolving character of the worldwide dilemma, weak travel demand will probably continue in the summer season and we must take additional action to remain afloat.”

The airline is owned by fighting Chinese conglomerate HNA Group, that has been trying to reduce its debt burden.

In November it announced it would delay salary payments to a employees as it fought to find money, triggering a warning against regulators that its permit may be in danger. While it was able to maintain flying because of an injection of capital, it continues to battle.

The coronavirus, that was first found at the central Chinese city of Wuhan late last year, spread across the Lunar New Year vacation and has killed more than 600 individuals in the nation, with 31,000 infected.

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