Air China Set To Buy HK Cathay Pacific Airlines - Report and Dragonair to buy Cathay,
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Dragonair to own Cathay
Investment Bankers in HKG looking at KA to purchase CX !!! Air China Holdings at top of the tree...
Good idea given the disasterous Management/Employee relations at CX and multiple court cases. Would probably raise the CX share price and inject some good management into a slipping company !
Look at the flag carrier go !!!
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KA, the same airline that was down to 7 days of finances during SARS and the same airline that is losing money as we speak on pax services (cargo keeps them afloat) are to buy CX.....
Wishful thinking maybe on some of the malcontents behalf but really, are you that thick?
Wishful thinking maybe on some of the malcontents behalf but really, are you that thick?
Lan Kwai
I am sure you jest but just in case, could you tell me who your investment banker mates are, so I will know who to stay away from when it comes to market advice.
The reality is that CX is moving to full control of KA as we sit here pontificating. As noted above, the basic re-alignment of the CNAC, Air China and CX relationship makes this logical and relatively easy to achieve.
The rationale is two fold. Firstly it gives CX a second brand to deal with the LCC incursions from the south and secondly it adds value to KA by joining the dots.
In recent times KA's expansion has been hampered by lack of feeder traffic. While everyone sees the Shanghai/Beijing dominance there are a lot more empty seats on the network than there should be or would be with more feeder traffic coming off CX LH routes.
Then of course there is the bonus of it being a vehicle for CX SO's to get some actual flying !!
I am sure you jest but just in case, could you tell me who your investment banker mates are, so I will know who to stay away from when it comes to market advice.
The reality is that CX is moving to full control of KA as we sit here pontificating. As noted above, the basic re-alignment of the CNAC, Air China and CX relationship makes this logical and relatively easy to achieve.
The rationale is two fold. Firstly it gives CX a second brand to deal with the LCC incursions from the south and secondly it adds value to KA by joining the dots.
In recent times KA's expansion has been hampered by lack of feeder traffic. While everyone sees the Shanghai/Beijing dominance there are a lot more empty seats on the network than there should be or would be with more feeder traffic coming off CX LH routes.
Then of course there is the bonus of it being a vehicle for CX SO's to get some actual flying !!
Last edited by VR-HFX; 3rd Feb 2005 at 02:08.
Firewall,
Losing money on pac services - On what do you base that statement ? Sure it varies from route to route but overall I didn't think that was the case.
Oz2
Losing money on pac services - On what do you base that statement ? Sure it varies from route to route but overall I didn't think that was the case.
Oz2
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'The reality is that CX is moving to full control of KA'. Really?
Do you think that Beijing will give up it's airline in HK to be controlled by what is still perceived as a British company? KA is not a listed company - it's shares are privately owned and the only way CX will get more is if Beijing will sell some of theirs. What you are probably looking at is a larger share of KA to be taken by CX and/or Swire Pacific (my guess is to about a third) which will benefit both, as the CX/Swire board members on KA will stop spoiling and start co-operating. This is in with keeping with the 9.75% of Air China stock bought by CX deal - remember that CNAC owned Air China as it does the majority of Dragonair.
There will be no merger, and you certainly won't see Dragonair Aircraft being painted green. As Lan Kwai Wanchai stated, it's more likely Red Dragons will appear on the Green aircraft! China is not a free market economy - yet.
Do you think that Beijing will give up it's airline in HK to be controlled by what is still perceived as a British company? KA is not a listed company - it's shares are privately owned and the only way CX will get more is if Beijing will sell some of theirs. What you are probably looking at is a larger share of KA to be taken by CX and/or Swire Pacific (my guess is to about a third) which will benefit both, as the CX/Swire board members on KA will stop spoiling and start co-operating. This is in with keeping with the 9.75% of Air China stock bought by CX deal - remember that CNAC owned Air China as it does the majority of Dragonair.
There will be no merger, and you certainly won't see Dragonair Aircraft being painted green. As Lan Kwai Wanchai stated, it's more likely Red Dragons will appear on the Green aircraft! China is not a free market economy - yet.
Tamalai,
Funny, I heard March mentioned at the airport today.
Oz2
Funny, I heard March mentioned at the airport today.
Oz2