Cathay Pacific unveils $5 billion bailout plan
>> Cathay Pacific announced an HKD 39 billion (USD 5 billion) government-led bailout plan on Tuesday as it battles a crippling downturn caused by the coronavirus. The bulk of the capital will come from new shares issued to Aviation 2020, a company owned by the government, as well as an HKD 7.8 billion bridge loan also from the government.
Swire currently has a 45% stake in Cathay while Air China owns 30%, but once the recapitalization plan is complete, Aviation 2020 will take a 6% stake, while Swire's shares will be reduced to 42% and Air China's to 28%.
Hong Kong flag carrier announces more executives pay cuts
>> Cathay Pacific said there will be another round of executive pay cuts and a second voluntary special leave scheme for employees, in addtion to its recapitalization proposal. In the long-term the airline said it will re-evaluate all aspects of the Cathay Pacific Group business model to meet the air travel needs of Hong Kong, while keeping Cathay Pacific’s financial status at a healthy level.
China alerts its citizens over U.S. travel restrictions
>> The Chinese Consulate General in New York on Tuesday reminded Chinese citizens in the U.S. or those planning to travel to the U.S. recently to pay attention to the restrictions on entry and exit imposed by the United States. In the notice, the consulate advised Chinese citizens to preserve the evidence if confronted with improper enforcement or discrimination when entering the U.S.
Since February, the U.S. government has issued a bunch of temporary measures to restrict foreigners from entering the country, the notice outlined.
Swiss Airlines resumes flights from Hong Kong
>> Swiss International Airlines resumed flights out of Hong Kong last week, carrying passengers to Zurich, and Lufthansa is due to follow, the airline group said. Lufthansa will resume flights between Hong Kong and Frankfurt at the beginning of July.
Ocean Park, Disneyland to reopen soon
>> Two major theme parks in Hong Kong will be reopened imminently as a key step in rebooting an economy reeling from the triple whammy of social unrest, the US-China trade war and the coronavirus pandemic.
Secretary for Commerce and Economic Development Edward Yau Tang-wah revealed that Ocean Park will greet guests on Saturday for the first time since closing on January 26 amid the pandemic. The Disneyland resort on Lantau Island will also resume operations soon, though a specific date has not been released.