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 (January 2021)
As a reminder, there are various ways of earning Avios from UK credit cards. Many cards also have generous sign-up bonuses!
There are two official British Airways American Express cards:
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
If you have a small business, we especially recommend Capital On Cap’s Visa card which comes with a generous bonus worth 10,500 Avios:
(Want to earn more Avios? Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)