Cathay Pacific Airways has raised US$650 million
 

It would appear a bunch of investors think CX is a good bet. A significant part of the CX sales pitch would have been the new POS18 cost structure and the company's ability to ignore any employee contracts.

https://www.scmp.com/business/bankin...27-years-raise

If true, even then as CX says it’s going to be used as working capital, USD650mil will be burnt in 80 days according to the current monthly loss of USD244mil per month.
It will probably cost them the entire USD650mil to pay for all the bases and local redundancies they are working on.

VSS funding. You didn’t think CX would pay for that themselves did you?

Investors won’t put up money like this to watch it go up in smoke, there has to be a survival plan on the table. Reducing cash burn would be top priority followed by restructuring into something which can make money post COVID.

Expect to see a downsizing of staff, fleet and network. More money would follow if there was light at the end of the tunnel and returns would be assured but at the moment this investment is speculative.

The EK style premium long haul hub model is out for the foreseeable future. Last September SQ had layoffs and decided on a different fleet mix going forward, with the B737, B787 and A350 being the primary types. Most B777s were grounded, there are orders for new ones but arriving in 2025/6, and 1/3 of the A380 fleet being retired.

CX and SQ are reasonably similar, so following Singapore’s example would be likely.

Shareholders have been taken on a long downward ride starting from June 2019, perhaps, at some stage, enticed by high dividends. Now it is the turn of the bondholders enticed by higher interest rate.

When the missiles start flying across the Taiwan Strait, the shareholders will be sprinting away faster than Ivan Fokovsky.

Risk of Taiwan Strait conflict ‘at all-time high’, Beijing-backed think tank says
https://www.scmp.com/news/china/mili...g-backed-think

A Beijing backed think tank ? Yes, totally impartial review then. And CCP backed think tanks are told what to think. Hence a complete misnomer.

And the pope is catholic. During the last few yearsCCP has been more, and more openly, aggressive then ever before.