You have to feel for Cathay Pacific, which has been down in the doldrums for some time now. The airline was already facing difficulties before coronavirus as a consequence of reduced demand due to the Hong Kong protests.
Coronavirus appears to be the straw that broke the camel’s back. In April and May, Cathay Pacific operated at 4% of its normal capacity. Whilst these cuts have managed to stem the tide of losses, it is still in a difficult position.
The Financial Times is now reporting that the airline has taken a bailout from the Hong Kong government for US$5bn. The government will take a 6.1% stake in the airline with Swire Pacific as the controlling shareholder. Air China and Qatar Airways will also see their stakes diluted.
The HK government will also be able to place two ‘observers’ in board meetings and with access to management information. Given the existing tensions between Hong Kong this may be a tough pill to swallow, especially after former Cathay Pacific CEO ‘resigned’ last year after pressure from Beijing.
It doesn’t look like the airline had much choice, however. Patrick Healy, chairman of the airline said that “quite frankly without this plan the alternative would have been a collapse of the company”.
How to earn Avios from UK credit cards (February 2024)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
There are two official British Airways American Express cards with attractive sign-up bonuses:
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.
Run your own business?
We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.
You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.