Wednesday, February 05, 2020

When it comes to climate hypocrisy, Canada's leaders have reached a new low 

Bill McKibben

A territory that has 0.5% of the Earth’s population plans to use up nearly a third of the planet’s remaining carbon budget


@billmckibben Wed 5 Feb 2020 



 ‘If an alcoholic assured you he was taking his condition very seriously, but also laying in a 40-year store of bourbon, you’d be entitled to doubt his sincerity.’ Photograph: Andrej Ivanov/Reuters

Americans elected Donald Trump, who insisted climate change was a hoax – so it’s no surprise that since taking office he’s been all-in for the fossil fuel industry. There’s no sense despairing; the energy is better spent fighting to remove him from office.

Canada, on the other hand, elected a government that believes the climate crisis is real and dangerous – and with good reason, since the nation’s Arctic territories give it a front-row seat to the fastest warming on Earth. Yet the country’s leaders seem likely in the next few weeks to approve a vast new tar sands mine which will pour carbon into the atmosphere through the 2060s. They know – yet they can’t bring themselves to act on the knowledge. Now that is cause for despair.


The Teck mine would be the biggest tar sands mine yet: 113 square miles of petroleum mining, located just 16 miles from the border of Wood Buffalo national park. A federal panel approved the mine despite conceding that it would likely be harmful to the environment and to the land culture of Indigenous people. These giant tar sands mines (easily visible on Google Earth) are already among the biggest scars humans have ever carved on the planet’s surface. But Canadian authorities ruled that the mine was nonetheless in the “public interest”.

Here’s how Justin Trudeau, recently re-elected as Canada’s prime minister, put it in a speech to cheering Texas oilmen a couple of years ago: “No country would find 173 billion barrels of oil in the ground and leave them there.” That is to say, Canada, which is 0.5% of the planet’s population, plans to use up nearly a third of the planet’s remaining carbon budget. Ottawa hides all this behind a series of pledges about “net-zero emissions by 2050” and so on, but they are empty promises. In the here-and-now they can’t rein themselves in. There’s oil in the ground and it must come out.

This is painfully hard to watch because it comes as the planet has supposedly reached a turning point. A series of remarkable young people (including Canadians such as Autumn Peltier) have captured the imagination of people around the world; scientists have issued ever sterner warnings; and the images of climate destruction show up in every newspaper. Canadians can see the Australian blazes on television; they should bring back memories of the devastating forest fires that forced the evacuation of Fort McMurray, in the heart of the tar sands complex, less than four years ago.

The only rational response would be to immediately stop the expansion of new fossil fuel projects. It’s true that we can’t get off oil and gas immediately; for the moment, oil wells continue to pump. But the Teck Frontier proposal is predicated on the idea that we’ll still need vast quantities of oil in 2066, when Greta Thunberg is about to hit retirement age. If an alcoholic assured you he was taking his condition very seriously, but also laying in a 40-year store of bourbon, you’d be entitled to doubt his sincerity, or at least to note his confusion. Oil has addled the Canadian ability to do basic math: more does not equal less, and 2066 is not any time soon. An emergency means you act now.

In fairness, Canada has company here. For every territory making a sincere effort to kick fossil fuels (California, Scotland) there are other capitals just as paralyzed as Ottawa. Australia’s fires creep ever closer to the seat of government in Canberra, yet the prime minister, Scott Morrison, can’t seem to imagine any future for his nation other than mining more coal. Australia and Canada are both rich nations, their people highly educated, but they seem unable to control the zombie momentum of fossil fuels.

There’s obviously something hideous about watching the Trumps and the Putins of the world gleefully shred our future. But it’s disturbing in a different way to watch leaders pretend to care – a kind of gaslighting that can reduce you to numb nihilism. Trudeau, for all his charms, doesn’t get to have it both ways: if you can’t bring yourself to stop a brand-new tar sands mine then you’re not a climate leader.

Bill McKibben is an author and Schumann distinguished scholar in environmental studies at Middlebury College, Vermont. His most recent book is Falter: Has the Human Game Begun to Play Itself Out?



---30---
Canadian court upholds Trans Mountain pipeline expansion approval


Federal court of appeals in a 3-0 decision rejected four challenges from First Nations to government’s approval of the project

Associated Press in Toronto

Tue 4 Feb 2020

 

Steel pipe for the Canadian government’s 
Trans Mountain pipeline expansion in Kamloops, 
British Columbia, on 18 June 2019. 
Photograph: Dennis Owen/Reuters

Canada’s federal court of appeal has dismissed legal objections to the contentious Trans Mountain pipeline expansion that would nearly triple the flow of oil from the Alberta oil sands to the Pacific coast.

In a 3-0 decision, the court rejected four challenges from First Nations in British Columbia to the federal government’s approval of the project.

That means construction can continue on the project, though the First Nations have 60 days to appeal to the supreme court.

The natural resources minister, Seamus O’Regan, said the ruling proves that if consultations and reviews are done properly, major projects can be built in Canada.

“The courts have acknowledged that we listened and that we want to do things right,” O’Regan said.

The pipeline expansion would triple the capacity of an existing line to carry oil extracted from the oil sands in Alberta across the snow-capped peaks of the Canadian Rockies. It would end at a terminal outside Vancouver, resulting in a sevenfold increase in the number of tankers in the shared waters between Canada and Washington state.

Tanker traffic is projected to balloon from about 60 to more than 400 vessels annually as the pipeline flow increases from 300,000 to 890,000 barrels a day.

The decision is a blow for indigenous leaders and environmentalists, who have pledged to do whatever necessary to thwart the pipeline, including chaining themselves to construction equipment



What if Canada had spent $200bn on wind energy instead of oil?

Chief Lee Spahan of the Coldwater Indian Band said in a statement an appeal to the supreme court is under consideration.

Many indigenous people see the 620 miles (1,000km) of new pipeline as a threat to their lands, echoing concerns raised by Native Americans about the Keystone XL project in the US. Many in Canada say it also raises broader environmental concerns by enabling increased development of the carbon-heavy oil sands.

Justin Trudeau’s government bought the existing pipeline and the expansion plan in 2018 after political opposition to the project from the British Columbia government caused Kinder Morgan Canada to pull out from building the expansion


---30---

Iowa's anger over Trump's ethanol policy gives Democrats opening



NEW YORK (Reuters) - In a speech last month to farmers in Texas, President Donald Trump won applause as he talked up recent U.S. trade agreements. When he tried to boast of his administration’s ethanol policy, however, he was met with silence.


Iowa swung sharply to Trump’s Republicans in the 2016 presidential election, but Democrats hope anger over a relaxation of rules mandating use of ethanol by U.S. refineries could put the corn-producing state in the win column this year.

Get the latest from the Iowa caucuses: here

“I think they haven’t solved the farmers’ problems in terms of ensuring farmers will have a consistent market for the ethanol that they produce,” said Wayne Moyer, a political science professor at Grinnell College in Grinnell, Iowa. “It’s a sore spot.”

Federal rules require refineries to blend 15 billion gallons of conventional biofuels like ethanol, which is made primarily from corn, into the nation’s fuel pool every year. Refiners have long sought waivers exempting them from these rules, while corn growers argue they are crucial to sustain ethanol demand.
Over the past two years, the U.S. Environmental Protection Agency (EPA) has granted more than 30 waivers to refineries, including facilities owned by Exxon Mobil and Chevron Corp, stoking the ire of farmers and spurring numerous meetings in which the White House has tried to placate growers’ anger.

In addition, farmers bore the brunt of the retaliatory tariffs on soybeans and other products imposed by China during an 18-month trade war with the United States. As the world’s second-largest economy stopped buying U.S. agricultural goods, American farmers had to adapt to a smaller export market.

While many farmers were willing to make that sacrifice to target what they saw as China’s uncompetitive behavior, they were less obliging when it came to giving up demand for their products in what they saw as a concession to the oil industry.

“If we saw some other wrong turn by the EPA ... then I think we’re going to have to take a hard look at the political situation,” said Mark Marquis, chief executive officer of Illinois-based ethanol producer Marquis Energy.

Iowa sells more corn and produces more ethanol than any other U.S. state, according to federal data. Ethanol supports about 40,000 jobs in Iowa, according to the Iowa Renewable Fuels Association.


Some Democrats, including former Vice President Joe Biden, and Pete Buttigieg, the former mayor of South Bend, Indiana, have highlighted the issue heading into the Iowa nominating contest on Monday, the first leg in the race to determine who will face Trump in the Nov. 3 election.

“President Trump has lied to Iowa farmers at every turn. He promised to ‘unleash ethanol’ but instead all he’s done is secretly unleash Big Oil from its renewable fuel obligations,” Biden tweeted in August.

Iowa could be crucial in this year’s presidential election. In the 2018 mid-term elections, two Republicans lost their re-election bids to the U.S. House of Representatives, giving Democrats a majority of the four congressional districts.

“The president is going to be challenged by farmers over the next nine months on whether or not he’s ethanol-friendly,” U.S. Senator Chuck Grassley, a Republican from Iowa who advocates for use of biofuels, said in a call with reporters in January.

(GRAPHIC: Iowa's ethanol, corn production tmsnrt.rs/2sR4j9k)


FILE PHOTO - U.S. President Donald Trump speaks during a campaign rally at Drake University in Des Moines, Iowa, U.S., January 30, 2020. REUTERS/Leah Millis
‘HIT AT THE KNEECAPS’

In August, the EPA granted 31 refinery exemptions, sparking outrage from the biofuels industry. There have been around 20 ethanol plant shutdowns since November 2018, equal to about 1.2 billion gallons of annual capacity, though some have reopened. The oil industry says the waivers do not destroy ethanol demand.

U.S. Representative Abby Finkenauer, a first-term Democrat from Iowa who defeated a Republican incumbent in 2018, has endorsed Biden’s presidential campaign, saying he understands the industry’s importance in the state and would stabilize renewable fuel policies.

“What we have seen specifically from Trump and his administration has been going back on words after hands have been shook,” she said.

“The tariffs affected the beans and the ethanol has affected the corn. We’re getting hit at the kneecaps,” said Trent Hatlen, who farms 1,000 acres of corn and soybeans in Rembrandt, Iowa. He said he is likely to support Biden on Monday.

The White House, in a statement, touted its promotion of American ethanol, including the approval of E15, a higher-ethanol blend of gasoline, for year-round use, which had been previously prohibited.

The signing of trade agreements, particularly the Phase 1 deal between the United States and China and the United States-Mexico-Canada Agreement, has boosted Trump’s standing among farmers.
Among those polled in late December who said they or an immediate family member were working in agriculture, 49% approved of the way Trump is handling U.S. farming, up from 43% in September, while 40% disapproved, a Reuters/Ipsos poll showed.

That support may withstand Democrats’ efforts to target Iowa.

“There’s still plenty of time to see what the world looks like between now and November,” said Nick Bowdish, the CEO of Elite Octane near Atlantic, Iowa, and Siouxland Ethanol near Jackson, Nebraska.

Credit Suisse also spied on Greenpeace: newspaper

TINKER, TAILOR, BANKER, SPY
Credit Suisse also spied on Greenpeace: newspaper

ZURICH (Reuters) - Credit Suisse (CSGN.S), which has faced a scandal related to spying on senior executives, also conducted espionage against Greenpeace, Swiss newspaper SonntagsZeitung reported.

Then-Chief Operating Officer Pierre-Oliver Bouee ordered his head of security to infiltrate the environmental group after Greenpeace disrupted the bank’s annual shareholder meeting in 2017, the paper said in an article published on Sunday.

Credit Suisse, which has been criticized by Greenpeace for investing in fossil fuels, gained access to emails, tipping the bank off to demonstrations planned against it, the report said.

A spokesman for Credit Suisse declined to comment on security matters. Greenpeace said it was following up the report and had no comment yet.

Bouee was dismissed in December over the surveillance of former executive board members Iqbal Khan and Peter Goerke. Switzerland’s market supervisor FINMA is investigating the issue.

Credit Suisse has said CEO Tidjane Thiam was unaware of the surveillance, and that Bouee had acted alone.

The affair has triggered a power struggle between Thiam and chairman Urs Rohner, with one expected to leave the bank soon, SonntagsZeitung reported. A board meeting is due to be held this week. The bank has rejected a Bloomberg report that Rohner is drawing up a list of potential successors to Thiam.

Greenpeace gatecrashed Credit Suisse’s AGM in 2017 to protest against its dealings related to the Dakota Access Pipeline in North America. Credit Suisse says it has committed to halting the financing of new coal-fired power plants and reducing the greenhouse gas emissions of ships it finances.

---30---
UP IN SMOKE

Imperial Brands' profit growth evaporates after U.S. vaping crackdown



(Reuters) - Tobacco group Imperial Brands (IMB.L) said it would not see any profit growth this year after tighter regulation in the United States, the world’s biggest vaping market, has sapped demand.


FILE PHOTO: Cigarette packs of Imperial Tobacco, now called Imperial Brands, are pictured at a tobacco store in Madrid, Spain, June 13, 2011. REUTERS/Andrea Comas/File Photo

The news pushed shares in the Winston and Kool cigarette maker down by 7% to 1,817 pence. It was the biggest loser on the broader FTSE .FTSE in early trading. Rival British American Tobacco's shares (BATS.L) were also down 1%.

The profit warning adds to the challenges for new CEO Stefan Bomhard - head of automotive services company Inchcape (INCH.L) - whose appointment was announced on Monday with a start date yet to be disclosed.

Imperial said first-half adjusted earnings per share in constant currency were expected to drop by 10%, as it writes-down inventories following the U.S. government ban on selling certain flavors for pod-based e-cigarettes, which goes into force on Thursday.

In response to slower consumer demand, Imperial forecast net revenue would be flat and adjusted earnings per share would be slightly lower than last year.

Growth of Imperial’s next generation products (NGP) has also been slower than expected.

The vaping market has shrunk in the United States after vaping-related deaths, illnesses and high rates of teen use of e-cigarettes led to increased regulatory scrutiny, including individual state bans.

“Regulatory uncertainty and adverse news flow continues to affect demand in the U.S. and Europe,” Imperial Brands said, adding it would see lower year-on-year NGP revenue and increased provisions for slow-moving stock.

The company said the U.S. ban has led to a write-down of flavored products inventory resulting in a 45 million pound ($58.55 million) impact on its first-half adjusted operating profit.

To mitigate the impact of these issues, Imperial said it would undertake a cost-savings programme, which would have an impact of 40 million pounds on its full-year adjusted profit.

Shareholders will digest the news at an annual general meeting on Wednesday.

---30---
CRIMINAL CAPITALISM 
Malaysia's AirAsia X forms committee to review Airbus bribery allegations

KUALA LUMPUR (Reuters) - Malaysian long-haul budget airline AirAsia X (AIRX.KL) has formed a board committee to review corruption allegations by Britain’s Serious Fraud Office (SFO), a stock exchange filing showed on Wednesday.

The AirAsia X committee will comprise non-executive members of the board excluding Kamarudin Meranun and Tony Fernandes, who are co-founders of its parent company AirAsia Group (AIRA.KL), the filing with the Bursa Malaysia (BMYS.KL) said.

AirAsia Group said on Monday it had also set up a committee to review the allegations and that CEO Fernandes and Chairman Kamarudin would step aside for at least two months while the airline and authorities investigate the allegations.

Fernandes and Kamarudin have denied any wrongdoing.

Britain’s SFO on Friday alleged that planemaker Airbus (AIR.PA) paid a bribe of $50 million to executives linked to AirAsia and AirAsia X to win plane orders.

The SFO said Airbus sponsored a sports team owned by AirAsia executives while negotiating airplane orders.

“The committee’s main objective will be to review the allegations therein so far as it concerns (AirAsia X), and to take any necessary action ... which includes the appointment of an independent expert,” the airline said.

The committee will manage all matters in relation to the review, AirAsia X said.

---30---
Trump touts stock market's record run, but who benefits

(Reuters) - Donald Trump loves to trumpet the hot U.S. stock market as a key achievement of his presidency, and he was in full self-congratulatory mode on that front during Tuesday night’s State of the Union address.

“All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90 and 100 percent and even more,” Trump said in his address to a joint session of Congress.

While pensions and retirement funds were lifted by the rise in stock markets, the president has avoided talking about one key point about who really benefits when the market rallies: Most of the gains go to the small portion of Americans who are already rich.

That’s because 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans, according to an analysis of 2016 Federal Reserve data by Edward Wolff, an economics professor at New York University. So when the stock market has a blockbuster year - such as the nearly 30% rise in the S&P 500 benchmark index in 2019 - the payoff primarily goes to people who are already rich.
“For most Americans, a stock price increase is pretty immaterial to their well-being,” said Wolff, who published a paper about wealth inequality in the National Bureau of Economic Research in 2017.

Roughly half of Americans own some stocks through a brokerage account or a pension or retirement fund. But for most people, the exposure is too small for market gains to be life-changing or leave them feeling much better about their finances, Wolff said. “They’ll see a small increase in their wealth, but it’s not going to be anything to write home about,” he said.


Graphic: The stock boom's unequal gains png, here


What’s more, nearly 90% of families who own stock do so through a tax-deferred retirement account, meaning they can’t access the money until they reach retirement age, unless they pay a penalty, Wolff said.

So who owns most of the stock market? The majority of corporate equities and mutual fund shares are held by investors who are white, college educated and above the age of 54, according to an analysis from the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis.

The typical middle-class family gets the bulk of its wealth from the housing market. Households in the middle three quintiles of wealth held 61.9% of their assets in their principal residence in 2016, according to Wolff’s analysis. That compares to households in the top 1%, who held 7.6% of their wealth in their homes.

Because most consumers accumulate the majority of their wealth through their homes, a rise in property values can provide a more substantial boost to household wealth than a stock market rally, said William Emmons, lead economist at the St. Louis Fed’s Center for Household Financial Stability.

Still, the recent revival in the housing market, spurred in part by the Federal Reserve’s interest rate cuts, is not helping all Americans equally. Rising property values benefit homeowners but make it harder for aspiring home buyers to break into the market, said Eugene Steuerle, co-founder of the Tax Policy Center, a joint venture between the Urban Institute and the Brookings Institution.

And some people who bought homes immediately before the recession hit may still be trying to recover their losses, Steuerle said. Their wealth may have been wiped out by foreclosure, meaning they then struggled to qualify for a new mortgage during the recovery, he said.

That’s in sharp contrast to well-off investors, whose overall wealth surged after the crisis thanks to strong returns on stocks, property and other investments. Some 72% of wealth accumulated between the third quarter of 2009 and the third quarter of 2019 went to the richest 10% of households, according to an analysis by Oxford Economics. Over that same time period, the poorest 50% of households reaped only 2% of wealth gains.

“There are a lot of families that have not yet recovered from the financial crisis,” Emmons said.


U.S. President Donald Trump delivers his State of the Union address to a joint session of the U.S. Congress in the House Chamber of the U.S. Capitol in Washington, U.S. February 4, 2020. REUTERS/Leah Millis/POOL

Some more evidence that the recent stock market boom is not making everyone feel richer: There has been little evidence of the “wealth effect,” which says that people tend to spend more when stock markets are up, said Lydia Boussour, a senior economist for Oxford Economics.

Since the recession, people have mostly continued to increase their savings even as the stock market rose. “Consumers are a lot more cautious,” she said.

---30---

Qatar Foundation rejects U.S. university's reason for scrapping event after anti-gay backlash


DOHA (Reuters) - An American university’s partner in Qatar has rejected the university’s explanation for cancelling an event in Doha that would have featured a prominent Middle East band whose singer is openly gay.
FILE PHOTO: Lebanese band Mashrou' Leila performs in Washington, DC, U.S. June 13, 2016.   REUTERS/Yeganeh Torbati/File Photo

FILE PHOTO: Lebanese band Mashrou' Leila performs in Washington, DC, U.S. June 13, 2016. REUTERS/Yeganeh Torbati/File Photo

Members of Lebanese indie rock band Mashrou’ Leila had been scheduled to take part in a discussion at Northwestern University’s Qatar campus on Tuesday, but the university moved the event to its U.S. campus after hostile online comments against Mashrou’ Leila’s appearance.

Northwestern cited “safety concerns” for the band and its community, among other, unspecified factors.

But Qatar Foundation, a state-linked non-profit body in the conservative Gulf Arab state, challenged the reasons given by Northwestern.

Asked about Northwestern’s comments, a Qatar Foundation spokesman told Reuters: “We place the utmost importance on the safety of our community and currently do not have any safety or security concerns.”

“We also place the very highest value on academic freedom and the open exchange of knowledge, ideas and points of view in the context of Qatari laws as well as the country’s cultural and social customs. This particular event was canceled due to the fact that it patently did not correlate with this context.”

Northwestern has not detailed its safety concerns.

Critics of the event demanded on social media that it be canceled. Some accused Mashrou’ Leila and the university of spreading views that are against Qatari and Islamic values. Others said they opposed same-sex relationships.

Gay sex is punishable by jail in Qatar, as in many Muslim-majority countries.

Mashrou’ Leila has garnered international acclaim with lyrics tackling issues of sectarianism, gender equality and homophobia.

A vocal supporter of equal rights for marginalized groups, the band has also had other events canceled in the Middle East following pressure by conservative groups.

---30---


Finland to offer new fathers as much paid leave as mothers

HELSINKI (Reuters) - Finland’s woman-led centre-left government plans to give new fathers the same amount of paid time off work as new mothers, nearly doubling paternity leave, it announced on Wednesday.


Finland's Minister of Social Affairs and Health Aino-Kaisa Pekonen holds a news conference on the family leave reform in Helsinki, Finland February 5, 2020. Lehtikuva/Vesa Moilanen via REUTERS
Finland's Minister of Social Affairs and Health Aino-Kaisa Pekonen holds a news conference on the family leave reform in Helsinki, Finland February 5, 2020. Lehtikuva/Vesa Moilanen via REUTERS

Paid paternity leave will be extended to nearly seven months, in line with maternity leave. Around half can be given to the other parent. Pregnant women are also entitled to a month of pregnancy leave before the expected date of birth.

Minister of Health and Social Affairs Aino-Kaisa Pekonen said the aim of the “radical reform” was both to improve gender equality and to boost a declining birth rate.

“This enables better equality between parents and diversity among families,” she said.

The number of newborns in Finland fell by around a fifth between 2010 and 2018, to just 47,577 babies in a country of around 5.5 million people. Pekonen said other countries such as Sweden and Iceland had seen increases in their birth rates after offering more leave for fathers.

Finland’s coalition of five parties, all led by women of whom four are under 35 years old, took office in December and has made gender equality a priority.

Speaking at the 50th annual World Economic Forum meeting in Davos last month, Prime Minister Sanna Marin called for states and companies to do more to ensure women were treated fairly, saying gender equality “doesn’t happen by itself”.


A previous centre-right Finnish government attempted to reform parental leave in 2018 but eventually rejected the idea as too costly.

Pekonen said a more equal distribution of domestic workload between parents has been proven to diminish the risk of divorce.

“Over a longer term, it also improves equality in working life and in wages by directing fathers to use a larger proportion of parental leaves than before,” she said.



WAGES FOR HOUSEWORK! UNIVERSAL BASIC INCOME! $25 LIVING WAGE!

Cathay Pacific asks employees to take unpaid leave as virus hits demand

JUST SAY NO


SYDNEY (Reuters) - Hong Kong’s Cathay Pacific Airways (0293.HK) asked its 27,000 employees to take three weeks of unpaid leave, saying preserving cash was key for the carrier and that conditions were as grave as during the 2009 financial crisis due to the virus outbreak.

Cathay is also asking suppliers for price reductions, putting in place hiring freezes, postponing major projects and stopping all non-critical spending, Chief Executive Augustus Tang said in a video message to staff seen by Reuters.

On Tuesday, the carrier said it planned to cut about 30% of capacity over the next two months, including about 90% of flights to mainland China.


Cathay had already experienced a sharp fall in demand since the middle of last year due to widespread, sometimes violent anti-government protests in Hong Kong.

The virus, which has led to a death toll of nearly 500, has led to a further drop in visitors and passengers transiting through Hong Kong’s airport.

“This has been one of the most difficult Chinese New Year holidays we have ever had,” Tang said in the video. “We don’t know how long this will last. With such an uncertain outlook preserving our cash is now the key to protecting our business.”

A few hours after the video was released, Hong Kong leader Carrie Lam announced any visitors from mainland China would need to undergo a compulsory quarantine for 14 days.

Cathay said in a statement it was appealing to all employees to participate in the unpaid leave scheme that will run from March 1 until June 30.

Tang said it was the first time the company had offered an unpaid leave scheme since 2009, when demand plummeted due to a global financial crisis.

“We had the overwhelming support of our employees,” he said, about the 2009 scheme. “It made an enormous difference. The situation now is just as grave and I ask for the same commitment to the future from you.”
FILE PHOTO: Hong Kong's Cathay Pacific Airways Airbus A330-300 passenger plane takes off near a Taiwanese national flag at Taoyuan International Airport, Taiwan August 6, 2018. REUTERS/Tyrone Siu/File Photo
FILE PHOTO: Hong Kong's Cathay Pacific Airways Airbus A330-300 passenger plane takes off near a Taiwanese national flag at Taoyuan International Airport, Taiwan August 6, 2018. REUTERS/Tyrone Siu/File Photo

The leave scheme, first reported by the South China Morning Post, is not mandatory but employees are encouraged to take it, a spokeswoman said.

Cathay shares closed 2.7% higher on Wednesday following the announcement of capacity cuts which came after the market closed on Tuesday.

In a note to clients, Jefferies analysts estimated the airline would report a loss in the first half of 2020 before returning to a profit in the second half, assuming traffic rebounds as it did with the 2003 SARS epidemic.