Originally Posted by
Liam Gallagher
GTC58,
People don't lend airlines money or lease them aircraft unless they are sure they will get their money back or the lease payments made. Unlike pilots, these people are not stupid and do their homework and read the fineprint.
The lenders will have seen that 84% of all Cathay Shares are held by 3 Companys, Swire Pacific (worth $HK113bn) Kingboard Chemicals (worth $HK34bn) and Air China (which is backed by the Chinese Government). These 3 shareholders have deep pockets and they are not going to let Cathay fail and they will not passively watch their investment disappear.
Actually Swire owns one of these aircraft leasing companies. I merely pointed out that CX will not buy these airframes cash as one of the posters implied.