Fragrant Harbour A forum for the large number of pilots (expats and locals) based with the various airlines in Hong Kong. Air Traffic Controllers are also warmly welcomed into the forum.

Announcement

Old 27th Mar 2021, 12:04
  #1 (permalink)  
Thread Starter
 
Join Date: Oct 2007
Location: FL340
Posts: 39
Cool Announcement

To all those who bailed us out last year: Thank you for doing so.
We are spending your investment wisely, we’ve reduced the amount we’re burning per month to HKD1.2 billion a month since January.
Errr... if it wasn’t for the quarantine thingy..
Well, because of that, we’re back burning HKD1.9 billion a month again, probably more next month. But don’t worry because the vaccine will sort it all out...... soooooon.
Until that happens, can we have a bit more please.....
Much appreciate it.
FlyingNun is offline  
Old 28th Mar 2021, 10:10
  #2 (permalink)  
 
Join Date: Jun 2005
Location: HK
Age: 50
Posts: 112
It wasn't a bail out, it was a loan with an interest rate increasing after 3 years, reason why CX CEO said the loan will be paid within 3 years.
Of course CX will be unable to pay, the government will give more money and the loan will be converted to government owned shares the airline becoming government property.
If Swire accepts to lose Cathay Pacific without a fight it should be a smooth transition however I believe they will try to cut cost as much as they can to delay that loss of control.
Good luck !
bacou is offline  
Old 31st Mar 2021, 06:50
  #3 (permalink)  
 
Join Date: Feb 2020
Location: Earth Orbit
Posts: 40
Difference between “bail-out” and a “Loan” in this case:

Bailout = Is that if the loan was not made, the company would cease operations

Loan = Money lent to prevent the company from ceasing operations
Angel 8 is offline  
Old 31st Mar 2021, 18:05
  #4 (permalink)  
 
Join Date: Nov 2015
Location: HK-CRoC
Posts: 654
Definitions

Actually what it was is a "Bailout Loan".. A loan given to an entity to prevent said company from ceasing operations with repayment terms looking identical to those of a "bailout" and most likely simply forestalling the eventual demise/sale of the company which will leave the taxpayers of Hong Kong on the hook for the entire amount and the "corporate" entities involved shoving the cash into "their" bank accounts.. "Asian Values"😳
Flex88 is offline  

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