Restructure or Die, Cathay Warns as it Burns Through Millions a Month
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Cathay Pacific Airways Ltd. is still burning through as much as HK$2 billion ($258 million) a month and will continue to do so until the market recovers from the coronavirus crisis, the company said Monday as it reported dismal August traffic figures and reiterated the need to restructure.
“We are weathering the storm for now, but the fact remains that we simply will not survive unless we adapt our airlines for the new travel market,” Chief Customer and Commercial Officer Ronald Lam said in a statement.
“A restructuring will therefore be inevitable to protect the company, the Hong Kong aviation hub, and the livelihoods of as many people as possible,” Lam said. AHK$39 billion recapitalization plan completed last month brought the company some time, but “it is an investment that we need to repay,” he said.
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