[cwoodward]

Leaked information indicates that the HK government will tomorrow announce that they will assist the airline with a $30 billion loan and take a HK$10 billion equity stake in the airline.
Indications are that the government will have two observers on the Cathay board
Trading in Swire and Cathay Pacific shares was halted last evening.

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GivingupBA

[stevescoots]

which no doubt will end up eventually in the hands of a China state investment company or airline

[cwoodward]

stevescoots
What please would be your reasoning for what may I say is a rather simplistic conclusion considering that Swire has proved itself to be a very able and long term player in the airline industry for the past 70 years. Swire is a buyer of mainland assets rather than a seller.

[canucklad]

My mate was telling me that he’s waiting for an announcement from Cathay this week. He didn’t sound hopeful that the news would be good, particularly since he’s been there a while and on a Captains salary . I also wonder if the 777 (his aircraft) might be the new 747 ?

Hopefully this news might make the expected blow better !

[stevescoots]

Bottom line is that it is seen as a colonial hangover still controlled by an old British family by those across the SZ ditch. That does not fit the nationalistic narrative of China excellence

[cwoodward]

Thanks stevescoots
‘Bottom line is that it is seen as a colonial hangover’ Seen by whom may I ask ?
Sadly a rhetorical question I would like to debate this with you as I disagree with your conclusions and reasoning but I fear that the debate would likely become just too political for the forum.

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stevescoots

[DavidGrodentz]

China already has a stake in Cathay through Air China of just under 30%, Swire have around 45%

Incidentally, Cathay have a 20% stake in Air China, both happened at the same time

The HK Government will hold 6% of Cathay after the restructuring, and 2 observer seats on the Board

Seems like a good model to follow, governments help with airline restructuring, and take a stake that can be sold in better times, whenever that may be

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TupeloKid

[TupeloKid]

I’m not a big fan of Cathay, or of bailouts (especially of bearded people), but I think this is a good thing for Hong Kong and may well (as David Grodentz says) be a good investment which, as a HK tax payer (though not much, since it IS Hong Kong) I am happy with.

I just hope that they invest some of the money in more comfortable seats. (There, I got my dig in.)

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DavidGrodentz

[cwoodward]

“I just hope that they invest some of the money in more comfortable seats. (There, I got my dig in.)”

I can’t let you get away with that TupeloKid

That ‘world renown’ organisation Skytrex rates Cathay seats as 4.5 out of 5 compared to 3 for BA

[Marc_ACB]

Perhaps we need a Hong Kong forum meet up, to discuss the views in person one day.

[cwoodward]

Just to be clear – my reply re seats was of course not intended to be taken seriously.

A HK meetup has been on the cards for some time and now would perhaps an opportune time to put something together – Tom ?

[TupeloKid]

[postquote quote=1000415][/postquote]

You have the advantage on me there, cwoodward. Curmudgeon that I am, I don’t fly BS because (in the class I sometimes travel – depending on the price at the time) I can’t reserve my seat on BA at the time of booking. Therefore my only points of reference for direct flights to London (though I do sometimes take indirect flights, e.g. with FinnAir, to avoid this whole thorny issue) are Cathay and the Bearded Airline. So I end up on VS.

[Author]

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