oneworld

Pro-Beijing news organisations and politicians in Hong Kong have called for punitive action against Cathay Pacific after its crew breached quarantine rules and started an Omicron outbreak. Two newspapers linked to the Chinese government ran multiple news reports and commentaries on Monday that said the carrier should be investigated and crew members who violated coronavirus rules criminally prosecuted. “[Cathay’s] top management definitely needs to be held to account. The government should look into ways to take follow-up action,” said Tam Yiu-chung, Hong Kong’s sole delegate on the standing committee of China’s parliament, the National People’s Congress. The airline declined to comment on the reports and accusations. The scrutiny of the carrier comes as Hong Kong officials are trying to contain the fallout from a large birthday party held this month attended by senior officials and lawmakers. Two individuals who went to the party of more than 200 people initially tested positive for coronavirus in an embarrassment to the Hong Kong government. The call for action against the Chinese territory’s de facto flagship carrier came just days after city leader Carrie Lam lambasted the airline and warned that Cathay’s management should be held accountable for the behaviour of its staff. The airline’s largest shareholder is the Swire Group, a British-controlled Hong Kong conglomerate that traces its history back to the colonial era. It has been suffering financially from Hong Kong’s tough pandemic control measures as the city pursues a “zero-Covid” approach along with mainland China. “The central government obviously believes that Cathay Pacific needs to take some responsibility for this,” said John P. Burns, an emeritus professor at the University of Hong Kong’s politics and public administration department.<br/>

Air passengers from so-called Group A, or designated high-risk countries, are set to be banned from transiting through Hong Kong International Airport, according to people familiar with the matter, another move in the financial hub's aggressive effort to shield itself from Omicron. Airport officials recently briefed carriers about the plan, the people said, asking not to be identified because the details are not yet public. The suspension will start on Saturday and run through Feb 14, though the end date will be subject to review, one of the people said. Procedures for how the ban will operate are still to be laid out, another person said. While traffic volumes are thin now due to the pandemic, the move is likely to disproportionately affect Cathay Pacific Airways, the city's flagship carrier that handles the vast majority of passenger transfers. Prior to Covid-19, Hong Kong was a busy hub for transits from mainland China, Taiwan and several other areas in the region, as well as long hauls such as the United States and Britain. There are around 150 countries and territories in Hong Kong's Group A list, including the eight nations that have specific route flight bans in place due to Covid-19 cases on board. Those eight are Australia, Canada, France, India, the Philippines, Pakistan, Britain and the US. "Cathay Pacific's cash burn may increase in Q1 as its capacity is cut further due to Hong Kong's border restrictions. But it may have sufficient liquidity to withstand this, with HK$7.8b in government loans still undrawn," said Sharon Chen, a BI credit analyst.<br/>