Cathay Pacific given access to HK$7.8 billion loan from Hong Kong government for another year
- Funds are part of the government’s rescue package provided in 2020 to help struggling airline stay afloat
- Cathay CEO Augustus Tang says the airline did not need to draw down the loan in the past 12 months due to ‘prudent cash management’
The loan facility was extended for the second time in two years.
Cathay CEO Augustus Tang Kin-wing said the airline did not need to draw down the loan in the past 12 months due to “prudent cash management”, despite a “difficult operational environment”.
“The further extension of the drawdown period is greatly appreciated and will provide us with flexibility to manage our liquidity position,” he said.
The bridge loan, which had been extended until June 8 next year, was part of a HK$39 billion rescue package led by the government to help the airline weather the coronavirus crisis in return for a 6.5 per cent stake in the company.
Last month, airline chairman Patrick Healy said that Hong Kong was “falling behind” as the rest of the world opened up to travel following the decline of the Covid-19 pandemic, but added the recent relaxation of quarantine restrictions would help the airline reduce its cash burn rate.
