Cathay Pacific given extension to draw down loan

Hard hit: A Cathay Pacific passenger plane prepares to land at Hong Kong’s international airport. The airline wants to access as much liquidity as possible at a time when passenger numbers are down by more than 99% from 2019. ― AFP

HONG KONG: Cathay Pacific Airways Ltd said yesterday that the Hong Kong government had agreed to extend the drawdown period for a HK$7.8bil (US$1.01bil or RM4.16bil) loan facility by a year to June 2022, giving it more flexibility to manage liquidity.

The bridge loan was part of a US$5bil (RM20.60bil) rescue package led by the Hong Kong government and Cathay’s major shareholders Swire Pacific Ltd and Air China Ltd last year to help the airline weather the Covid-19 crisis.