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Cathay Pacific: The Purge

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  1. #211

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    Quote Originally Posted by chichow
    From a pure commercial markets perspective, Air China cannot easily take over CX from a shareholding perspective.
    Does Air China have its current holding for commercial reasons?

  2. #212

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    honestly, most of the Asian airlines have political constraints and need to serve their government, regardless of whether they are listed... look at MAS, SIA, Geruda, Thai, to name a few...


  3. #213

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    Quote Originally Posted by East_coast
    Does Air China have its current holding for commercial reasons?

    https://www.ft.com/content/04b81902-...0-00144feabdc0
    Morrison likes this.

  4. #214

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    Quote Originally Posted by East_coast
    Does Air China have its current holding for commercial reasons?
    Air China hit the ownership threshold cap back in the late 2000s within the first decade of the handover.

    In the early 2010s Cathay was dumping converted 747 freighters to Air China and helping Air China with cargo expansion ( CX staff seconded to Air China Cargo with their expertise) so there were both political and commercial considerations

    https://news.cathaypacific.com/air-c...enture-173785#

  5. #215

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    Quote Originally Posted by chichow
    sorry you are really off-base: when you say
    "Air China, as a shareholder of CX, could easily takeover CX from Swire in theory, but as a SOE"

    from past filings
    Swire Pacific Limited 45%
    Air China Limited 29.99%
    From a pure commercial markets perspective, Air China cannot easily take over CX from a shareholding perspective.




    and for

    "It is accountable to...Swire," Exactly. It is accountable to a Hong Kong trading house - the Hongs / Taipans from before. It is NOT accountable to the normal shareholder person walking about on the street.
    No, not off-base at all. Beijing call the shots, remember? Even if on the face of it, shareholding does not favour an Air China takeover, if Beijing wants CX disappear or fully-owned by Air China, they can exert on kind of pressure on Swire.

    Not accountable at all to the average shareholder? No...not completely unaccountable. They can always raise their voice, even if they don't have actual say, they can always exert some pressure besides the actual shareholding. Not very effective, but that is not the same as saying they are completely unaccountable or indifferent to the average shareholder.

  6. #216

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    Quote Originally Posted by chichow
    so there were both political and commercial considerations

    https://news.cathaypacific.com/air-c...enture-173785#
    Politics will trump business considerations for Beijing, always. If the stuation arise that it makes political sense for Air China to takeover CX, Beijing will find a way to do so.

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