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Wednesday, Aug 17, 2022

Cathay welcomes extension of $7.8b bridge loan from govt

Cathay welcomes extension of $7.8b bridge loan from govt

Cathay Pacific welcomes the Hong Kong government’s agreement to extend the drawdown period of the HK$7.8 billion loan facility for a further 12 months until 8 June 2023.
The government provided the bridge loan facility to Cathay Pacific as part of the HK$39 billion recapitalisation announced on 9 June 2020 to help the airline maintain its competitiveness and operations amid the industry-wide downturn due to Covid-19.

“We are grateful to the government for its ongoing support, and its continued confidence in the long-term future of Cathay Pacific despite the short-term challenges of the pandemic,” Augustus Tang Kin-wing, chief executive officer of Cathay Pacific said, “The further extension of the drawdown period is greatly appreciated and will provide us with flexibility to manage our liquidity position.”

The Cathay Pacific said the group’s liquidity remains at a healthy level, standing at HK$30.3 billion as of the end of 2021, compared to HK$28.6 billion at the end of 2020. Following the recent adjustments to the government’s travel restrictions and quarantine requirements, the airline is progressively adding back capacity and expects this will have a positive impact on the airline’s business.

Tang added: “We have already recommenced hiring as we plan for the anticipated recovery in Hong Kong and global aviation in the 18-24 month period ahead. As the Hong Kong’s home airline, we remain resolutely committed to keeping the Hong Kong hub safely and reliably connected just as we have for more than 75 years.”

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