Cathay Plans $5 Billion Government-Backed Recapitalization

Cathay Pacific is facing significant financial challenges due to the coronavirus pandemic and the Hong Kong protests. The airline is heavily reliant on long-haul travel, which has been severely impacted. To address these issues, Cathay Pacific has received a government lifeline and is seeking further funding through equity markets. The company is burning through cash at a rate of 3 billion Hong Kong dollars per month and is implementing additional financial strategies to manage the crisis.

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

• Increased fuel prices

• Competition from low-cost carriers

• The Hong Kong protests

• A decline in international tourism

Who is Phillip in the context of the video?

• Cathay Pacific's CEO

• An airlines reporter

• A government official

• A financial analyst

What is Cathay Pacific considering to raise more funds?

• Equity markets

• Issuing more flights

• Reducing staff

• Increasing ticket prices

Why is Cathay Pacific more affected compared to other airlines?

• It has high employee turnover

• It has a large domestic market

• It has outdated aircraft

• It relies heavily on long-haul travel

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