Cathay Pacific May Leave oneworld, Be Acquired By Air China

[iot]

This just hit the news today -

Air China, which currently owns 30% of Cathay Pacific, is considering taking control of the Hong Kong-based airline.
https://viewfromthewing.com/cathay-pacific-may-leave-oneworld-be-acquired-by-air-china/

Bloomberg-
Air China Said to Consider Raising Stake in Cathay Pacific
20 hours ago
https://www.bloomberg.com/news/articles/2024-02-23/air-china-said-to-consider-raising-stake-in-cathay-pacific

[veryoldchinahand]

With Swire controlling 66.2% of the voting shares it not likely

[Gordomac]

Controlling shares does not mean anything is particularly likely or unlikely. Heading towards controlling interest has been the flow pattern for years and is, er, highly likely.

[From a distance]

Swires have demonstrated how accommodating they can be to demands made by a certain party, such as during the protests.

They have quite a few operations over the border which I m sure they would like to continue to operate without difficulties.

CX will be handed over and the optics will seem like the decision is mutually beneficial.

Would management of the airline be any worse under Air China?

[Progress Wanchai]

Beijing used their influence to remove the CEO, plus a few undesirable minions through the GD approval scheme. I wouldn’t underestimate their power to influence the shareholder balance or three yearly management contract.

Would an Air China management be better or worse for employees? It’s largely academic. Most crew are in a holding pattern waiting for a clearer view of the future. For better or worse a new management will make that picture clearer which is all anyone is asking for.

(If they were asking for more rather than hoping for it they’d already be in a fight for it, which they’re not)

[fire wall]

VOCH, There is only one entity that truly controls the destiny of CX and it ain't Swire.

[iot]

https://www.pprune.org/south-asia-far-east/514390-stay-away-air-china.html

[cadetjockey]

https://www.thestandard.com.hk/breaking-news/section/4/214616/HKAOA-urges-independent-inquiry-to-examine-airline-businesses,-consider-should-Swire-continue-control-Cathay

looks like the AOA wants to give this idea a little more wind…. I’m sure Air China will give us back COS08…

[ZootBoot]

Air China taking over would be much better. This bunny-hopping of managers that Swire does is a joke when it come to long term planning and execution.

Kick-can-down-road mentality is great for KPIs and inked bonuses, but dreadful for long term health.

[corporal klinger]

Agree.Also maybe it would be beneficial to be part of the state controlled Chinese aviation industry rather than a competitor.