Cathay Pacific / Air China takeover rumors

Laura · Joined: 16 May 2004 Posts: 446 Location: San Francisco

Apparantly Cathay Pacifc and Air China are talking about holding major stakes in each other. For a while rumors were going around that Air China was going to take over Cathay Pacific, but I just read a news item that was less than half an hour old that says that Cathay's parent company, Swire Pacific, will maintain a majority interest in Cathay Pacific.

Another transaction being discussed is Cathay Pacific buying 100% of Dragon Air, a Hong-Kong based regional airline with service to the mainland and other short/medium haul flights from Hong Kong.

I am really really hoping that Air China does not take over Cathay Pacific as the first set of rumors had it. My major worry is that if the mainland government-owned airline took over, the spectacular level of service on Cathay Pacific would drop dramatically. If the second, newer rumor I read is true, then perhaps it will be a good thing. Cathay would get more landing rights in mainland China, and perhaps could even have trans-Pacific flights from the US to mainland China.

I guess we'll just have to wait and see. I'd just hate to see Cathay Pacific go down the drain service-wise because of this.

cocodrilo · Joined: 12 Apr 2004 Posts: 494 Location: Western Japan

I would really hope that Air China is not going to take over Cathay for the same reasons as Laura mentioned. I have been flying Cathay since 1985 and have always been impressed with their service.