If you look at the share repurchase scheme, you will realize that Cathay bought back shares worth around 150,000,000 HKD.... and those shares were cancelled. Also, if you look at the depreciation on assets owned, that is 1,551,000,000 HKD. Depreciation is not a cash expense! so our actual cash flow is hugely positive.... maybe Cathay is learning from the US airlines. Post big losses, and then renegotiate with all of your suppliers and employees.... fortunately, we understand what they are doing.
The 60 million was not thrown at the FAA. It was given to the Department of Justice, for wrongdoings of cathay. Of course, that is why we have a risk management department, to take risks that pay off!
hahaha... someone beat me to it on the share buy back... I was chatting with my friend and reading the detail interim report. I notice that HKD148 million share buyback as well... hahaha... As for the depreciation and cash flow... the huge depreciation on asset is quite normal for an airline, airplane cost a lot of money afterall... also airline by nature is always a cash flow positive business (unless you are in a lot of sh*t and bleeding cash at a unbelievable rate), as we received the ticket purchase well before we have to deliver the service to passenger. So I don't think we need to worry about the company not having money to pay us! CX is still very healthy, especially when we are still asset positive... if you look at many US carriers where they are actually asset negative, that is scary...
So now the big question with regards to 13th month, I wonder how the company is going to spin it? If you deduct our HKD148 million share buy back and the HKD468 million DOJ charges from our net losses of HKD663 million... you will notice that we have only make a loss of HKD47 million. so things might not be as bad as it looks but by no mean good for CX standard.