Originally Posted by
Freehills
Just look at the results today. Still making a loss, but see fit to pay 393m HKD dividend to the shareholders (Swire, Qatar & Air China = 85% ownership)
Borrowing to payout a dividend is never sustainable in the long run. In a purely technical sense, the company is liquidating some of it value, cashing it out and giving it to shareholders. The shareholder isn't any richer since the value of the company goes down by the amount borrowed, he is just more liquid.