ClOSedloop22
Join Date: Aug 2018
Location: HK
Posts: 46
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Jul 2013
Location: one country, one system
Age: 55
Posts: 505
Likes: 0
Received 0 Likes
on
0 Posts
Fair enough. Let me re-phrase: stop the righteous judging of closed-loop volunteers. Mind your own business.
PS Any suggestion that starts with " If no one would.." is futile
PS Any suggestion that starts with " If no one would.." is futile
Last edited by Sam Ting Wong; 7th Feb 2022 at 16:20.
Have they actually drawn down the government money ?
Join Date: Jul 2013
Location: one country, one system
Age: 55
Posts: 505
Likes: 0
Received 0 Likes
on
0 Posts
In seriousness, the government help is bifold: equity plus an optional loan. The equity deal has been done, the loan is on hold. At least that is my understanding.
According to Bloomberg the loan is structured like a developing country loan. In 2026 the annual repayment will be more that Cathay Pacific have ever made as a profit in a year.
A developing country has to give a sea port or a third of its agricultural produce to offset the loan. Cathay will have to give most of itself. Such is "Capitalism with Chinese characteristics"
A developing country has to give a sea port or a third of its agricultural produce to offset the loan. Cathay will have to give most of itself. Such is "Capitalism with Chinese characteristics"
Join Date: Nov 2015
Location: HK-CRoC
Posts: 749
Likes: 0
Received 0 Likes
on
0 Posts
Zombie Company ??
isn't that a way they manipulate the words? They said they haven't used the gov money and they have 20 billion in the acc or thereabout, wouldn't that mean if it wasn't for the Gov, they would've used up all their own cash?
Join Date: Oct 2006
Location: Hong Kong
Posts: 651
Likes: 0
Received 0 Likes
on
0 Posts
Anxio, I remember reading that article and thinking it was like reading the financial version of the national enquirer. A load of sensationalist BS
If my memory is correct it was talking about an interest bill of $2billion HKD in 2025 or 2026 - we made 1.5-2Billion in the 2nd half of last year with less than half our aircraft flying and in the middle of a pandemic. We lost 32 Billion in fuel speculation over 4 years - so yeah, I think we can manage to make the interest payments on less than 30billion in loans at an interest rate that gradually catches up to around 5-6 %
CX aint going broke any time soon. Not this year anyway - if things stay locked down like they are on 10th of Feb for the rest of this year - we will still have probably half of that money left undrawn.
If my memory is correct it was talking about an interest bill of $2billion HKD in 2025 or 2026 - we made 1.5-2Billion in the 2nd half of last year with less than half our aircraft flying and in the middle of a pandemic. We lost 32 Billion in fuel speculation over 4 years - so yeah, I think we can manage to make the interest payments on less than 30billion in loans at an interest rate that gradually catches up to around 5-6 %
CX aint going broke any time soon. Not this year anyway - if things stay locked down like they are on 10th of Feb for the rest of this year - we will still have probably half of that money left undrawn.
Hold on to that thought NC. I can’t name a single airline ( other than the ones solely in Govt hands with long pockets such as the ME3 that tend not to publish results anyway) that can function without actually generating revenue. ie flying.
Where do the lease payments for -8’s, A320’s/ A321’s/A50’s figure in your calculations ? And that’s the CX fleet alone. HKE has a relatively young fleet. I can’t imagine that they’re all paid for. To say nothing of the rent etc on the tenanted land that the airline and subsidiaries occupy at CLK, rents at outports, leasing of APU’s/ power plants etc.
It’s a massive drain. And can only lead to the balance books going one way, in the absence of any real revenue.
Where do the lease payments for -8’s, A320’s/ A321’s/A50’s figure in your calculations ? And that’s the CX fleet alone. HKE has a relatively young fleet. I can’t imagine that they’re all paid for. To say nothing of the rent etc on the tenanted land that the airline and subsidiaries occupy at CLK, rents at outports, leasing of APU’s/ power plants etc.
It’s a massive drain. And can only lead to the balance books going one way, in the absence of any real revenue.
Last edited by MENELAUS; 10th Feb 2022 at 09:34.
Anxio, I remember reading that article and thinking it was like reading the financial version of the national enquirer. A load of sensationalist BS
If my memory is correct it was talking about an interest bill of $2billion HKD in 2025 or 2026 - we made 1.5-2Billion in the 2nd half of last year with less than half our aircraft flying and in the middle of a pandemic. We lost 32 Billion in fuel speculation over 4 years - so yeah, I think we can manage to make the interest payments on less than 30billion in loans at an interest rate that gradually catches up to around 5-6 %
CX aint going broke any time soon. Not this year anyway - if things stay locked down like they are on 10th of Feb for the rest of this year - we will still have probably half of that money left undrawn.
If my memory is correct it was talking about an interest bill of $2billion HKD in 2025 or 2026 - we made 1.5-2Billion in the 2nd half of last year with less than half our aircraft flying and in the middle of a pandemic. We lost 32 Billion in fuel speculation over 4 years - so yeah, I think we can manage to make the interest payments on less than 30billion in loans at an interest rate that gradually catches up to around 5-6 %
CX aint going broke any time soon. Not this year anyway - if things stay locked down like they are on 10th of Feb for the rest of this year - we will still have probably half of that money left undrawn.
Yeah, CX isn’t going broke anytime soon, but how big is the noose that it’s head is sitting in?
I like the saying I can’t see the forest through the trees’.
If CX don’t turn this around, the convertible bonds will collapse the share price, ask yourself what happens then?