Air China looking to purchase Cathay
Feb 23, 2024, 3:15 am
#1
Original Poster
Join Date: Jul 2023
Location: New Zealand
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Air China looking to purchase Cathay
https://www.xm.com/research/markets/allNews/reuters/air-china-to-consult-advisers-for-raising-cathay-pacific-stake-bloomberg-reports-53772848
Perhaps this is why Swire has been so conservative and gotten rid off overseas staff.
Perhaps this is why Swire has been so conservative and gotten rid off overseas staff.
Feb 23, 2024, 3:24 am
#2
Join Date: Apr 2023
Location: Hong Kong
Posts: 329
I think this has been inevitable for some time, the only question is when. The CPC/Winnie won't allow HK's flagship companies to be owned/run by gweilos. HSBC's Greater China operations will go the same way at some point.
Feb 23, 2024, 1:32 pm
#5
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Bloomberg: Air China potentially merging with Cathay Pacific. CX leaving Oneworld?
https://www.bloomberg.com/news/artic...cathay-pacific
Should CA proceed with gaining majority control of CX, will CX, as a founding member of Oneworld, join *A? Will that mean I can enter Pier F as a *G? 👀
Air China Ltd. has been sounding out advisers in recent months on the possible merits of raising its nearly 30% stake in Cathay Pacific Airways Ltd., according to people familiar with matter, rekindling a long-running idea as the 77-year-old Hong Kong carrier rebounds from the pandemic.
Air China suffered a total loss of about 70 billion yuan ($9.7 billion) in the three years through 2022 and is set for a deficit of as much as 1.3 billion yuan for 2023. Cathay, meanwhile, expects net income of at least HK$8.6 billion ($1.1 billion) for last year, which would be the highest since 2010. The airline and its HK Express arm flew 2 million passengers in January, an average of more than 70,000 a day. In the depths of Covid, its daily traffic was just a few hundred.
Air China suffered a total loss of about 70 billion yuan ($9.7 billion) in the three years through 2022 and is set for a deficit of as much as 1.3 billion yuan for 2023. Cathay, meanwhile, expects net income of at least HK$8.6 billion ($1.1 billion) for last year, which would be the highest since 2010. The airline and its HK Express arm flew 2 million passengers in January, an average of more than 70,000 a day. In the depths of Covid, its daily traffic was just a few hundred.
Feb 23, 2024, 3:35 pm
#7
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An acquisition would almost surely take CX out of OW and into *A. A sad next chapter for a once-great aviation brand.
Feb 23, 2024, 3:54 pm
#8
Join Date: Apr 2014
Location: Hong Kong
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Posts: 384
Mods, please change the thread title
The Bloomberg report does not say Air China is looking to purchase Cathay. Not at all. Please read carefully.
Air China is only looking to increase its stake, relative to Swire Pacific, to have control. Very different
Air China is only looking to increase its stake, relative to Swire Pacific, to have control. Very different
Feb 23, 2024, 3:56 pm
#9
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Feb 23, 2024, 4:27 pm
#10
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pretty sure if Air china wants to control more than 30% they have to make a takeover bid
Feb 23, 2024, 5:51 pm
#11
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It would be a terrible development indeed! It would be more awesome if CA merges with CX and CA joins OW. OW will be so weird without CX. Furthermore, is the SQ lounge at HKG even necessary if CX joins *A?
Last edited by lsquare; Feb 23, 2024 at 6:45 pm
Feb 23, 2024, 6:05 pm
#12
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It would definitely leave a huge gap in transpacific flights for oneworld… with only JL’s limited frequencies (with connections made even more difficult with the HND/NRT split) + AA’s anemic Asian coverage. Whereas Star would have UA, AC, NH, CA, CX, BR and SQ.
Feb 23, 2024, 6:44 pm
#13
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The whole HND/NRT split never made much sense to me. I wish Tokyo would just have one gigantic airport with cheap and fast access to central Tokyo. I don't think JL can replace CX as well.
Feb 23, 2024, 6:45 pm
#14
Join Date: Jan 2011
Posts: 2,346
Unless regulations have changed recently, there is a reason why Air China owns a 29.99% stake in Cathay Pacific instead of 30% - at 30%, Air China will have to make a mandatory takeover offer, as per Hong Kong rules.
https://www.charltonslaw.com/hong-ko...s%20(Rule%2026).
From 2009: "By increasing its holding to 29.99 percent, Air China bolstered its position to just a hair's breadth below the 30 percent threshold that would trigger a mandatory takeover offer, while also doubling its presence on the Cathay board to four members."
Source: https://thehimalayantimes.com/busine...cific-takeover
https://www.charltonslaw.com/hong-ko...s%20(Rule%2026).
From 2009: "By increasing its holding to 29.99 percent, Air China bolstered its position to just a hair's breadth below the 30 percent threshold that would trigger a mandatory takeover offer, while also doubling its presence on the Cathay board to four members."
Source: https://thehimalayantimes.com/busine...cific-takeover