The financing of airlines is big business. Many tricks to get better values, better rates, returns etc.
You can google the Bond and the stories about CBD financing HKAs debt and expansion plans online.
As you can see above, the bond face value went down, which means you can buy it on the market less than what it is worth, by up to 60% less, hence your 550 million has only cost you 220 million. The price of the Bonds tanked, only to recover after CBD Bank put aside 100 Billion RMB (15 Billion US$).
Someone mentioned tricks to affect sales. Tickets are sold 3-6 months in advance, only 10% last minute. The busiest period of the year has been sold months in advance. The load factor will not be affected in the short term.
Since CBD (The government of China) decided to step in and back HKA, they are not going anywhere. I would not be surprised if it was sold to another Chinese Company as an ongoing concern.
Cathay has enough on its plate to worry about taking out a competitor with stupid rumours. The HX Los Angeles, and San Francisco Flights are not really a concern for CX, as it is a drop in the ocean.
Beijing dictates many things anyway, and both companies are owned by Chinese money anyway, and will be completely Chinese at some point.
You may get rebranded and a new logo on your tails because of this, but I cannot see HKA going. These rumours are tricks for much higher and more lucrative financing deals than ticket prices, and load factors.
We just fly planes, in a protected and honest environment hence we are gullible and naive when it comes to financing.
The first sensible thing I've read on this thread for ages. Thank you.