Cathay Pacific will undergo a HK$40b (US$5.2b) capital restructuring exercise as the Hong Kong government takes the lead in a bailout package worth nearly HK$30b in loans and an undisclosed stake, lending its full backing for the city to remain the region’s aviation hub. It is the first time the government has directly injected money into a private company. Hong Kong’s flag carrier will issue new shares as part of the plan which will see the authorities taking up two “observer” boardroom seats in an unprecedented shake-up that will empower it to have a direct say in how the airline is run, sources said. Emerging as a “white knight”, the government will offer a loan to be paid back in the future and, more controversially, it will take a stake in the airline without seeking full boardroom status. Instead, it will have the “two observers” on the board, industry sources revealed. Trading was suspended on Tuesday morning while the city’s leader, Carrie Lam Cheng Yuet-ngor, met with the Executive Council, her de facto cabinet, to get final approval of a package that is expected to be announced later on Tuesday. Cathay Pacific is now majority-owned by the Swire Group with a 45% stake, and Air China with 29.99%. The restructuring is well above the airline’s market capitalisation which stands at HK$34.6b. Sources said the government decided to offer the rescue package given the importance of maintaining Hong Kong’s status as a regional aviation hub, and taking into account the hard-earned aviation rights, and important routes and flights, Cathay enjoyed and provided to residents and international passengers alike.<br/>
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A defense lawyer for a suspect in the downing of Malaysia Airlines Flight 17 over eastern Ukraine nearly six years ago said Monday that coronavirus restrictions have seriously hampered efforts to prepare the case. Sabine ten Doesschate, a Dutch lawyer representing Russian suspect Oleg Pulatov, said flight bans and other restrictions linked to the pandemic “have had a major impact” on attempts to build a defense case, including preventing lawyers from flying to Russia to interview their client. She said that meant defense lawyers aren't yet ready to make preliminary objections such as challenging the Dutch court's jurisdiction in the case. Ten Doesschate spoke as the trial resumed for three Russians and a Ukrainian charged with involvement in shooting down the Boeing 777 that was flying from Amsterdam to Kuala Lumpur on July 17, 2014. Judges and prosecutors didn't immediately respond to the defense claims, which could lead to long delays in the trial that began on March 9. Coronavirus social distancing measures were in place in the courtroom, with judges and prosecutors separated from one another by glass screens. After Ten Doesschate spoke, prosecutors began giving judges an overview of the lengthy and painstaking international investigation into the downing of MH17. They described extensive forensic tests on wreckage of the plane recovered in Ukraine and on the bodies of victims, as well as tests with missiles in 2016 that led to the prosecutors' conclusion that a Buk missile fired from rebel-controlled territory in eastern Ukraine brought down the plane.<br/>
Resumption of international flights by Malaysia Airlines next month will allow families to unite with loved ones after separation due to travel restrictions in many parts of the world. The national air carrier has increased domestic connectivity this month and will resume some of its international flights as nations begin to lift border restrictions. “Passengers are, however, reminded to check entry and exit requirements before their journey with travel restrictions remaining in place in most countries, ” the company said. Malaysia Airlines said it would adjust network capacity from time to time to ensure that passenger demand was met before the normalisation of domestic and international flight schedules and destinations this October. Its CEO Captain Izham Ismail said: “The airline is looking forward to welcoming passengers onboard following the resumption of services and increase in capacity. We shall continue to ensure their safety, health and comfort by introducing new initiatives aligned with international safety and health protocols as part of our commitment to offer passengers peace of mind throughout their journey with us." Story has flight details.<br/>
Qantas and Virgin Australia have regrounded their remaining international passenger operations after government funding for the handful of overseas routes they were flying came to an end. The Morrison government says it is reviewing whether it needs to fund further flights to get Australians home from abroad as some overseas airlines resume flying here. Under the government program, Qantas was flying a twice weekly London-Perth-Melbourne return service and a weekly Los Angeles-Melbourne service, the last of which landed on Monday morning. Meanwhile Virgin - which is in voluntary administration seeking new owners - was flying a weekly Los Angeles-Brisbane service which ended Sunday. Both airlines confirmed on Monday they had no further international passenger services scheduled following the end of the government scheme, with aircraft to be grounded and crews working the flights stood down. A spokeswoman for the Deputy Prime Minister and Transport Minister Michael McCormack said the scheme with Qantas and Virgin was established to get Australians home as soon as possible amid the pandemic. "The government is reviewing the program noting there are now alternative commercial flight options available from London and Los Angeles," she said. Qantas will continue to fly some international freight flights and said it was ready to fly any further repatriation flights for the government as needed.<br/>