Cathay Plans $5 Billion Government-Backed Recapitalization

Cathay Pacific is implementing a recapitalization plan, including a rights issue, to address financial difficulties exacerbated by the coronavirus and Hong Kong protests. The airline, heavily reliant on long-haul travel due to the lack of a domestic market, is receiving a government lifeline and exploring further funding options. Cathay Pacific is burning through cash at a rate of 3 billion Hong Kong dollars monthly and is implementing additional financial strategies to stabilize its operations.

What was one of the initial challenges Cathay Pacific faced before the pandemic?

• Competition from low-cost carriers

• Increased fuel prices

• The Hong Kong protests

• A decline in international tourism

Who is Phillip in the context of the video?

• Cathay Pacific's CEO

• A government official

• An airlines reporter

• A financial analyst

What is Cathay Pacific considering to raise more funds?

• Issuing more flights

• Equity markets fundraising

• Increasing ticket prices

• Reducing staff

Why is Cathay Pacific more affected compared to other airlines?

• It has outdated aircraft

• It relies heavily on long-haul travel

• It has a large domestic market

• It operates in multiple countries

How much cash is Cathay Pacific reportedly burning through each month?

• 4 billion Hong Kong dollars

• 3 billion Hong Kong dollars

• 2 billion Hong Kong dollars

• 1 billion Hong Kong dollars