Cathay Pacific shareholder Qatar Airways is willing to invest more in the Hong Kong airline, which is currently working on a restructuring plan to survive the COVID-19 crisis.
Qatar Airways would support Cathay if it requested an additional equity injection, Qatar Airways Group CEO Akbar Al Baker told the South China Morning Post. Qatar already holds a stake of almost 10% in Cathay, acquired in 2017. Swire Pacific is the largest shareholder in Cathay with 45%, and Air China holds a stake of almost 30%.
Cathay has grounded most of its fleet and is only operating 3% of its normal capacity during May due to the COVID-19 pandemic. Hong Kong has approved financial aid, including subsidies based on aircraft numbers and fee relief. The government has also pre-purchased 500,000 tickets.
There is considerable speculation about what restructuring moves Cathay might be planning, but the airline is yet to reveal specifics. However, an airline spokesman told Aviation Daily that a wide range of options are being considered.
“Given the very dynamic situation we are currently in, we are not taking anything off the table and we can’t rule out anything to ensure our airline business will come out from the crisis stronger and more competitive,” the spokesman said.
Among the areas believed to be under review are workforce and wage cuts, fleet reductions, and aircraft order changes. Other options for Cathay include adjusting the roles of its subsidiary carriers Cathay Dragon and Hong Kong Express within the group.
Separately, Cathay announced new requirements for passengers on May 13. Due to COVID-19, all passengers must wear masks when physical distancing of two meters cannot be maintained. The requirement will be in force from May 15, and applies in the airline’s lounges, during check-in and boarding, in aircraft cabins, and during disembarking.
Related Content
