CX / KA & Air China
Thread Starter
Joined: Oct 2004
Posts: 346
Likes: 0
From: Earth
CX / KA & Air China
Is it just me?? Am I the only one who read about "the re-alignment" of share in CX/KA & Air China and thinks that this is it ?? the long touted take over of Dragonair, despite further claims that "KA will remain as an independant brand"......................Sounds to me like the party is just about to get started....................
Joined: Aug 1999
Posts: 300
Likes: 0
From: Hong Kong
sizematters No it's not just you.... but I think many of us are taking a wait and see approach. There is no doubt about it.... interesting times ahead, but CX/KA will never let the employees in on it until the deal is done, and good business sense would agree!
I personally think that if CX gets the rights that it wants into China it will sell ALL of it's shares in KA.... if it does not get the slots it wants into China, you could well see CX/Swire Pacific owning a majority shareholding in KA by the end of the year. But having said that.... i really have no idea what will happen.... hence the wait and see approach!
I personally think that if CX gets the rights that it wants into China it will sell ALL of it's shares in KA.... if it does not get the slots it wants into China, you could well see CX/Swire Pacific owning a majority shareholding in KA by the end of the year. But having said that.... i really have no idea what will happen.... hence the wait and see approach!
Joined: Sep 2005
Posts: 42
Likes: 0
From: Melbourne
Yes, recall reading that too. Local journalist had a small write up in the business section of the SCMP last Wednesday, I think. Keep in mind, this paper also reported the opposite in recent months - CX to buy KA. Go figure.
Joined: Jan 2005
Posts: 254
Likes: 0
From: Hong Kong
Would that be this:
Wednesday April 12, 9:47 AM
HK PRESS: Cathay Pacific Open To Selling Dragonair Stake
HONG KONG (Dow Jones)--Hong Kong's Cathay Pacific Airways Ltd. (0293.HK) prefers to sell its 17.8% stake in Hong Kong Dragon Airlines Ltd. in return for better time slots for its flights to Beijing and Shanghai, the South China Morning Post reported Wednesday, citing company sources.
Cathay may sell its stake to China National Aviation Company Ltd. (1110.HK), which already owns 43.3% of Dragonair, the report said, citing the sources.
ADVERTISEMENT
Major shareholders of Cathay and Dragonair are negotiating a "realignment" of their interests in the carriers after conglomerate CITIC Pacific Ltd. (0267.HK) - which owns 28.5% of Dragonair and 26.7% of Cathay - said it plans to cut those stakes.
With Hong Kong and Chinese aviation authorities on the verge of reaching an open-skies agreement, the sources said Cathay doesn't see much strategic value in keeping its stake in the smaller airline, as Dragonair had privileged access to mainland China, flying to more than 15 cities in the country.
By comparison, Cathay flies passenger services to only two Chinese cities.
Conglomerate Swire Pacific Ltd. (0019.HK) is another major stakeholder in both airlines, holding 46.8% of Cathay, and 7.7% of Dragonair.
Newspaper Web site: http://www.scmp.com
Wednesday April 12, 9:47 AM
HK PRESS: Cathay Pacific Open To Selling Dragonair Stake
HONG KONG (Dow Jones)--Hong Kong's Cathay Pacific Airways Ltd. (0293.HK) prefers to sell its 17.8% stake in Hong Kong Dragon Airlines Ltd. in return for better time slots for its flights to Beijing and Shanghai, the South China Morning Post reported Wednesday, citing company sources.
Cathay may sell its stake to China National Aviation Company Ltd. (1110.HK), which already owns 43.3% of Dragonair, the report said, citing the sources.
ADVERTISEMENT
Major shareholders of Cathay and Dragonair are negotiating a "realignment" of their interests in the carriers after conglomerate CITIC Pacific Ltd. (0267.HK) - which owns 28.5% of Dragonair and 26.7% of Cathay - said it plans to cut those stakes.
With Hong Kong and Chinese aviation authorities on the verge of reaching an open-skies agreement, the sources said Cathay doesn't see much strategic value in keeping its stake in the smaller airline, as Dragonair had privileged access to mainland China, flying to more than 15 cities in the country.
By comparison, Cathay flies passenger services to only two Chinese cities.
Conglomerate Swire Pacific Ltd. (0019.HK) is another major stakeholder in both airlines, holding 46.8% of Cathay, and 7.7% of Dragonair.
Newspaper Web site: http://www.scmp.com
