ir China to acquire Cathay Pacific Airways
Cathay Pacific returns to China after 71
Reliable sources at Cathay Pacific told Corporation China that Air China will acquire Cathay Pacific Airways
The Announcement will be only be released Tomorrow
The History of Cathay Pacific is that American Roy C Farrell and Australian Sydney H de Kantzow founded Cathay Pacific Airways on 24 September, 1946. Initially based in Shanghai, the two men eventually moved to Hong Kong and established the airline.
Air China owns 30% of Cathay Pacific as
UPDATE: ( 19 Jan 2017)
Cathay said that as part of the plan its flight operations unit would undertake a review of its current structure to ensure it had the right model in place, something it said had not been looked at for many years.
It also addressed concerns that the strategy and reorganization was part of a plan to get the airline ready for sale to Air China, China’s flag carrier which already owns a 29.99 percent stake. Cathay’s majority owner is Swire Pacific.Source :The National January 18, 2017 Updated: January 18, 2017 04:55 PM
Corporation China news story was the first to report it and created such interest, it crashed our website hosting servers.
Air China to acquire Cathay Pacific 2018
Could a union between Beijing-based Air China (753.HK) and Hong Kong’s Cathay Pacific Airways (293.HK) be back on the horizon? updated 2018
Crucial Perspective founder and CEO, Corrine Png is adamant that there is a possibility that Air China and Cathay Pacific Airways could merge. Air China owns 30% of Cathay Airways and Cathay Airways owns 18% of Air China.
This merger would be beneficial to both airlines and would expand Air China internationally as well as giving Cathay Pacific Airways access to a premium breed of travelers. This year is likely to have been the worst for Cathay since the Global Financial Crisis as it has lost shares to mainland rivals and suffers the hangover of a miscued fuel hedge. According to Png, Cathay will lose HKD 1.5 billion in 2017 and is not likely to pay any dividends.
Earlier this month, state-owned shipper COSCO acquired Hong Kong’s Orient Overseas for USD 6.3 billion. Kingboard Chemical Holdings built up an 8.3% shareholding in Cathay valued at about HKD 4 billion. The intention of the company is not known, as it has no ties with the aviation industry. However, it could, in fact, be a deal maker or breaker if Air China decides to make an offer to buy Cathay.
Friend or Foe?
A flight to Los Angeles using Cathay Airways is 65% more expensive than Air China, who is offering economy tickets on the new Shenzhen-Los Angeles route for as little as HK$4,350 ahead of the Christmas holidays. Air China’s competitive pricing while being a shareholder in Hong Kon’s flagship airline makes one wonder if the airlines are foes or if this is the beginning of a relationship that could inevitably lead to an aviation marriage of convenience.
According to Png, Cathay’s second largest shareholder is only intent on making profits and getting rid of its domestic competition. China is on the road to becoming the largest air travel market in the world by 2022, impressively overtaking the US.
Why should they merge?
According to Dr. Law Cheung-kwok, an aviation policy expert from the Chinese University of Hong Kong, the merger could imply a successful incorporation of two prominent airlines under one country. He believes that Cathay would be more profitable and that Air China would benefit from its stake in one of Hong Kong’s core industries.
According to Png, Cathay would be sold to its Beijing cousin sooner rather than later.
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