HK government 'will not get involved' after Cathay HK$30bn bailout

The Hong Kong government is set to inject HK$30bn (US$3.87bn) into Cathay Pacific as part of wider HK$39bn recapitalisation plan the airline is undertaking to enable it to continue operating through the coronavirus pandemic. According to this report from the South China Morning Post, the funds will give Hong Kong’s government a 6.08% stake in the company – and although existing shareholders Swire Pacific, Air China and Qatar Airlines will contribute the remaining HK$9bn, their shareholdings will be reduced, giving the government a greater say in Cathay’s management. “In exchange for equity, the government will be taking up two “observer” boardroom seats in an unprecedented shake-up that will empower it to have a direct say in how the airline is run, sources have told the Post.”