- Title: Cathay Pacific shareholders votes on $5 billion rescue package
- Date: 13th July 2020
- Summary: HONG KONG, CHINA (FILE - MARCH 10, 2020) (REUTERS) EMPTY CATHAY PACIFIC CHECK-IN COUNTER SIGN READING (English): "CATHAY PACIFIC" BEIJING, CHINA (FILE - MARCH 12, 2020) (REUTERS) VARIOUS OF AIR CHINA PLANES PARKED ON TARMAC AT BEIJING CAPITAL INTERNATIONAL AIRPORT EMPTY CHECK-IN COUNTERS AND SELF-CHECK-IN TERMINALS AIR CHINA COUNTER CLOSED/ STAFF WALKING BY
- Embargoed: 27th July 2020 09:13
- Keywords: Air China Cathay Pacific Hong Kong Government Swire Pacific coronavirus
- Location: HONG KONG / BEIJING, CHINA / IN AIR
- City: HONG KONG / BEIJING, CHINA / IN AIR
- Country: Hong Kong
- Topics: Society/Social Issues
- Reuters ID: LVA003CMN5JD3
- Aspect Ratio: 16:9
- Story Text: Cathay Pacific shareholders are voting on Monday (July 13) to accept a HK$39 billion ($5 billion) rescue package from the Hong Kong government as the aviation industry is battered by the coronavirus pandemic.
The package includes a HK$7.8 billion bridging loan, HK$ 19.5 billion of preference shares giving it a 6% stake and HK$1.95 billion of warrants. The government will also have the right to two observers at board meetings.
Government round the world have been helping aid airlines amid a plunge in travel demand and coronavirus-related travel restrictions. Cathay has grounded most of its planes, flying only cargo and a skeleton passenger network to major destinations such as Beijing, Los Angeles, Singapore, Sydney, Tokyo and Vancouver.
Shareholders, including Swire which holds 45%, Air China which owns 30% and Qatar Airways with 10%, plan to participate in the rights issue. Their holdings will fall to 42%, 28% and 9.4% afterward.
- Copyright Holder: FILE REUTERS (CAN SELL)
- Usage Terms/Restrictions: None