18-06-2020 / SCMP / Why the Cathay Pacific bailout is a raw deal for Hong Kong
//the Lion Rock Institute is steadfastly against the bailout. It will be ultimately detrimental to Hong Kong’s aviation industry by reducing the incentive for the bailed out company to fully and rapidly adapt to the post-coronavirus environment.
Furthermore, by becoming a part-owner of an operator, the government will have the incentive to ensure its success by eliminating any potential competition. This will harm all consumers of Hong Kong’s aviation industry and slow necessary and innovative changes in the sector.
We firmly believe the company’s productive capacity to provide aviation services would have survived and thrived even further if the financial restructuring proceeded without government involvement.
We fear the public does not view this bailout to be of Cathay Pacific but rather its equity owners and creditors. The public being kept ignorant of who is benefiting raises serious issues of propriety.//