Cathay Pacific plans recapitalisation, government takes 6% stake in airline
Jun 14, 2020, 5:44 am
#91
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An ownership by CA isn't a bad thing. At the minimum, CX has better access to the Mainland market.
But this is definitely not a good deal. See below.
It will keep getting worse.
CX has been mismanaged for years (seriously, when an airline lost that much from hedging but made money on others, you know there must be something wrong). The new owner literally knows jack about businesses, as it practically fails in each instance.
Don't forget - the new owner is extremely biased (i.e. worse than CA) because it decides to save CX and leave HX untouched. Since CX becomes a SOE, their operations can be monitored by the new owner more closely.
But this is definitely not a good deal. See below.
It will keep getting worse.
CX has been mismanaged for years (seriously, when an airline lost that much from hedging but made money on others, you know there must be something wrong). The new owner literally knows jack about businesses, as it practically fails in each instance.
Don't forget - the new owner is extremely biased (i.e. worse than CA) because it decides to save CX and leave HX untouched. Since CX becomes a SOE, their operations can be monitored by the new owner more closely.
Jun 14, 2020, 4:05 pm
#92
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Jun 14, 2020, 9:12 pm
#93
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Jun 16, 2020, 2:05 pm
#95
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Jun 17, 2020, 1:39 am
#96
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Jun 17, 2020, 5:27 am
#97
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Jul 24, 2020, 1:54 pm
#100
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HKSAR Government has not exactly done anything explicitly to piss off the U.S. Government. Also, it would be a reduction instead of a total loss, given AA/UA still have flights to HKG (assuming COVID-19 is not a factor).
Jul 25, 2020, 6:05 am
#101
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Jul 25, 2020, 1:37 pm
#103
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I suspect the future holds a further break from US/China flying which will probably be extended to Hong Kong, so CX better be prepared for a stop to their US routes.
Jul 25, 2020, 2:38 pm
#104
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Jul 25, 2020, 9:02 pm
#105
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That being said, "pissing off" the US is irrelevant. The question is whether air services agreement between Hong Kong and the US is threatened by any of the US laws or orders. I have not seen this mentioned in any of the media coverage but would be curious if anyone has taken a close enough look to be able to definitively say whether this is threatened.