CX really does not need the Swires any more. I hope the other share holders realise just how bad they are for Cathay.
COMPANIES & FINANCE ASIA-PACIFIC: Airline deals stutter on take-off: Obstacles to cross-border partnerships and consolidation in the Asia Pacific region are not being removed fast enough, write Joe Leahy and Douglas Wong:
Financial Times; Jun 8, 2001
EXTRACT
China, meanwhile, has said it would allow foreign ownership of up to 49 per cent of Chinese airlines, and the Sri Lankan government has approved Emirates' purchase of 40 per cent of Sri Lankan.
Huge shake-ups are also under way among some domestic airlines. In April, China's industry regulator, the Civil Aviation Administration of China, announced a three-way merger of the country's myriad domestic airlines. However, in all of these cases, only limited roles are seen for foreign airlines. There is little talk, for instance, of Cathay Pacific Airways, Hong Kong's flag carrier, becoming involved in China's domestic industry even though it is partly held by mailnland interests.
This is due to the British links of Cathay's controlling shareholder, the Swire Group. Swire remains the dominant shareholder despite the politically driven deal ahead of Hong Kong's handover to Chinese sovereignty in 1997 which raised the mainland interests in Cathay and Dragonair, its former regional airline.
"Until either the Chinese government becomes very liberal or the British interests are removed, I don't see a role for Cathay there," said Philip Wickham, regional airlines analyst with ING Barings.
Full text
http://globalarchive.ft.com/globalar...4=010608001724