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Rumour: CX May Invest in HX

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Old Jan 10, 2019, 4:41 am
  #1  
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Rumour: CX May Invest in HX
Several Chinese news reports just came out in the past few hours mentioning that CX may inject capitals into HX or buy HX's shares as HX is on the brink of bankruptcy. The reports mention that China Development Bank might help with HX's 550 million USD bond which will mature on 20JAN. One report (last one) says HU is still interested in joining oneworld and needs to sort out HX with CX.

https://www.hk01.com/財經快訊/281125/內媒報...21512;作
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https://ezone.ulifestyle.com.hk/arti...1354;%EF%BC%9F
ernestnywang is offline  
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Old Jan 10, 2019, 4:44 am
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Time for that competition ordinance to be put to the test.
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Old Jan 10, 2019, 5:51 am
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Or is the central government wrestling CX to help bail out HX?
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Old Jan 10, 2019, 9:14 pm
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I just thinking if that's for real CX has to suspend trade? But we don't see that happen ....
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Old Jan 10, 2019, 9:37 pm
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I haven't heard any updates on this in the past month, but CA is also a potential suitor (for any/all HNA Group airlines). I don't care much for HU or HX, but their presence helps keep fares in check in many markets.
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Old Jan 10, 2019, 11:02 pm
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Originally Posted by moondog
I haven't heard any updates on this in the past month, but CA is also a potential suitor (for any/all HNA Group airlines). I don't care much for HU or HX, but their presence helps keep fares in check in many markets.
As I remember, CA cannot hold any HKG based airline except CX due to intersect holding. So CA can only buy HU but cannot touch any holding of HX (HU still hold certain % of HX)
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Old Jan 11, 2019, 12:57 am
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Should be HKG govt pressuring CX to buy HX instead. Imagine anything happening around CNY... would be an absolute disaster for HK.
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Old Jan 11, 2019, 1:19 am
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I bet it is similar case when VS looks for buyers.
BA is interested in the slots but not the company (VS).
By the same token, CX is interested in the slots of HX but not HX itself
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Old Jan 11, 2019, 1:22 am
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Originally Posted by CX HK
Should be HKG govt pressuring CX to buy HX instead. Imagine anything happening around CNY... would be an absolute disaster for HK.
Why should the government pressure CX? It's a free economy and survival of the fittest. As with any other business there's always a risk of a counterparty failing to deliver.

I think unless CX's parents ask for help, CX would stay out of this. What's better than seeing your biggest local competitor failing?
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Old Jan 11, 2019, 1:25 am
  #10  
sxc
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Originally Posted by cheung.chunyuenc
I bet it is similar case when VS looks for buyers.
BA is interested in the slots but not the company (VS).
By the same token, CX is interested in the slots of HX but not HX itself
They're probably also interested in the crew on cheaper contracts too.

If they bought HX, they'll probably keep its AOC separate, like they have for KA.
clubeurope likes this.
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Old Jan 11, 2019, 2:17 am
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Originally Posted by Chromie25
Why should the government pressure CX? It's a free economy and survival of the fittest. As with any other business there's always a risk of a counterparty failing to deliver.

I think unless CX's parents ask for help, CX would stay out of this. What's better than seeing your biggest local competitor failing?
Not spent much time in HK recently? Big brother is now everywhere.
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Old Jan 11, 2019, 2:24 am
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Originally Posted by Chromie25
Why should the government pressure CX? It's a free economy and survival of the fittest. As with any other business there's always a risk of a counterparty failing to deliver.
I think, that idea is outdated. Nowadays, there are to many big mouth CEO's, diving into disastrous adventures using other peoples' money. Adventures, based on "you have to be big, not profitable", until the whole does collapse. Quite a lot of airlines are in serious troubles now and nearly every week, one collapses. Think about EY, already outsourcing a lot of pilots and now also firing an additional 50 pilots, in a boom market for pilot jobs.

Originally Posted by Chromie25
I think unless CX's parents ask for help, CX would stay out of this. What's better than seeing your biggest local competitor failing?
A failing competitor is also bad for your own business, because it lowers the trust in the business type. Better take-over that business, once the price is right, reorganize, etc and show that you have more control of the business, etc.
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Old Jan 11, 2019, 3:19 am
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Originally Posted by fairhsa
Not spent much time in HK recently? Big brother is now everywhere.
I understand the reality but just voicing out my opinion.
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Old Jan 11, 2019, 3:23 am
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HX is not failing in the next few months.
take a chill pill
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Old Jan 11, 2019, 3:46 am
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Originally Posted by sxc
They're probably also interested in the crew on cheaper contracts too.

If they bought HX, they'll probably keep its AOC separate, like they have for KA.
Can keep HX as a low cost CX, move more tourist market to HX, could be a win win
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