Cathay Pacific Airways welcomes extension of Hong Kong government's loan facility
Cathay Pacific Airways CEO, Augustus Tang, said the airline was “grateful” to the Hong Kong Special Administrative Region’s (HKSAR) government for a 12-month extension, until June 8, 2023, of the draw down period for a government backed HK$7.8 billion (US$1 billion) loan facility. Read More » “Since the beginning of the COVID-19 crisis, we have remained focused on prudent cash management,” Tang said. “Despite the difficult operational environment, we have not had to draw down the facility in the past 12 months. The extension of the draw down period is greatly appreciated and will provide us with the flexibility to manage our liquidity position.” In recent weeks, the oneworld alliance member has been adding back capacity in response to the HKSAR's easing of some travel restrictions into and out of Hong Kong. The airline group has recommenced hiring in anticipation of a recovery in the aviation market in 18 to 24 months. “Based on our preliminary assessment, we are targeting a reduction in operating cash burn to less than HK$0.5 billion a month for the next few months,” Tang said.