Recapitalisation Package and Cathay Pacific's Warrant Buyback by CEO Ronald Lam
Overview of Cathay's Buyback Deal
Cathay Pacific Airways has successfully completed a HK$1.53 billion buy-back of all government-issued warrants as part of the recapitalisation package. This significant move by CEO Ronald Lam reflects the airline's commitment to fortifying its financial stability amidst industry recovery.
Details of the Recapitalisation Package
Initially established in 2020, the recapitalisation package was essential for Cathay as the airline faced unprecedented challenges during the Covid-19 pandemic.
Investment from Government
- Investment Amount: HK$27.3 billion through the Land Fund
- Warrants Issued: HK$19.5 billion in detachable warrants
- Bridging Loan: HK$7.8 billion
Future Investment Plans
Looking ahead, Ronald Lam stated Cathay plans to invest more than HK$100 billion to enhance passenger experiences and strengthen its international presence. The airline is also poised to expand its fleet with over 100 new-generation aircraft.
Financial Performance and Outlook
Despite earlier delays in fully restoring passenger capacity, Cathay reported a return to profitability with a net profit of HK$9.78 billion last year.
For more details on Cathay Pacific's financial strategies and recovery plans, please visit the source.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.