Cathay loses millions as anxious staff fear China takeover

The audience of pilots, flight attendants and other employees was unconvinced. That the subject was even raised reflects the level of anxiety and distrust at the 75-year-old airline, which has gone from being a symbol of Hong Kong’s openness to one of its decline. Made a cautionary tale for businesses that didn’t rein in their staff during 2019’s anti-China protests, Cathay has since been hammered by some of the most stringent travel curbs in the world, as Hong Kong’s government strives to toe Beijing’s isolationist line on walling out the virus. The restrictions have decimated Cathay’s passenger business, leaving it more reliant on cargo operations for income. The airline, due to report annual results on Wednesday, is flying at about 2% of 2019 capacity and is bleeding as much as HK$1.5b ($192m) a month. Cathay’s second-largest investor with a 29.99% share, Air China can’t raise its stake without bidding for the entire company, thanks to a 2006 shareholding agreement. The Beijing-based carrier has downplayed that possibility, with Non-Executive Director Stanley Hui saying in January a takeover “has never been in the minds of anyone in Air China.” Still, such is the level of suspicion among staff at the storied carrier -- especially when it comes to Hong Kong Chief Executive Carrie Lam’s Beijing-backed administration -- that speculation persists about the government’s plans for the airline, according to interviews with multiple current and former Cathay workers. By far the city’s dominant airline, Cathay has long been a crucial cog in Hong Kong’s functioning as a financial center and Asian transit hub. But the sheen has come off the company, as it has Hong Kong, which is no longer regarded as the freewheeling, global metropolis it was. The protests and Covid restrictions put paid to that. People are leaving in their thousands. Story has more.<br/>