Company Watch - Cathay Pacific.
Air Pacific and Cathay Pacific Airways will codeshare on FJ's twice-weekly Hong Kong-Nadi service scheduled to launch Dec. 3. Sep 14, 2009
Cathay Pacific is to sell part of its investment in Hong Kong Aircraft Engineering Co (HAECO) in a bid to raise new cash. The airline has also announced a "sale-and-leaseback" deal with BOC Aviation which will also generate new liquidity. Cathay will sell a 12.5 percent stake in HAECO to Swire Pacific for around HKUSD 1.9bn (U166m) taking its holding down to 15 percent. Tony Tyler, Cathay's ceo, said the sale of HAECO shares would strengthen the airline's balance sheet at a challenging time. Swire Pacific, part of the Swire Group corporation, is the largest shareholder in Cathay with a 42 percent stake. Cathay's deal with aviation company BOC involves 19 B777-300ERs currently on firm order. Mr Tyler said it was the largest deal of its kind in Cathay's history. www.cathaypacific.com Sep 17, 2009
Cathay Pacific Airways has sold a stake in its Hong Kong maintenance, repair and overhaul (MRO) business and it has agreed to sell and leaseback six Boeing 777s to improve its balance sheet. The Oneworld carrier says it is selling a 12.45 percent stake to Swire Pacific for HKUSD 1.9 billion (USD 245 million) and this will reduce its shareholding in Hong Kong Aircraft Engineering (HAECO) to 15 percent from 27.45 percent. Swire Pacific's stake rises to 45.96 percent from 33.52 percent. It also says it has agreed to sell to BOC Aviation and leaseback six 777-300ERs it has on order. The aircraft are due to be delivered from 2009'S fourth quarter to 2011's second quarter, it says. Sep 16, 2009
Cathay Pacific Airways and Dragonair flew 7.89 billion RPKs in August, a 1.9 percent rise from the year-ago month. Capacity fell 5 percent to 9.39 billion ASKs, lifting load factor 5.7 points to 84.1 percent. Sep 16, 2009
"This is a positive move as fundraising needs for the company will decrease after this HKD 2 billion deal," -- Nomura analyst Jim Wong. Cash-strapped Cathay Pacific Airways on Wednesday said it will sell part of its stake in aircraft maintenance company HAECO to parent Swire Pacific for USD 245 million. Cathay will sell 12.45 percent of Hong Kong Aircraft Engineering Company (HAECO) for HKD 1.9 billion (USD 245 million) or HKD 91.83 per share, slightly below HAECO's close of HKD 93.30 on Wednesday, it said in a statement. The airline is expected to post a one-time gain of HKD 1.27 billion from the deal, to be booked this year. Analysts said the fund raising would immediately help ease the company's capital spending requirements for new aircraft, which are estimated at HKD 4 billion this year and HKD 7 billion in 2010. "This is a positive move as fundraising needs for the company will decrease after this HKD 2 billion deal," said Nomura analyst Jim Wong. The company's net debt to equity ratio will fall to 76 percent, from 81 percent at end-June, after the completion of the transaction, he added. After the deal, Cathay's interest in the aircraft maintenance company will fall to 15 percent from 27.45 percent, the company said in a statement. Cathay returned to profit in the first half of 2009, thanks to a huge fuel-hedging gain. But it warned last month of strong headwinds ahead. The outlook for global airlines this year has worsened, with IATA projecting USD$11 billion in losses as weak passenger and cargo demand pressure revenue. Shares of Cathay, a unit of conglomerate Swire Pacific, ended up 4 percent at HKD$12.36 on Wednesday. They have gained 41 percent this year, slightly below a 49 percent rise on the broader market. Sep 16, 2009
Cathay Pacific Airways saw passenger traffic rise 3.8 percent year-on-year in August to 2.2 million passengers. RPKs rose 1.9 percent in August, and ASKs were down 5 percent, says the Oneworld carrier. The passenger load factor rose 5.7 percentage points to 84.1 percent. Sep 15, 2009
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|Date:||Sep 28, 2009|
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