Chapter five hundred and seventy-first Cathay Pacific beyond making ends meet
After more than half a year of operation, Cathay Pacific has declined more and more. The suspension of some routes, changes in flight times, and price discounts have made Cathay Pacific unable to make ends meet every month and is in a state of loss.
Cao Guangbiao's former ambitions have also completely cooled down. While Li Guangyu was busy instructing Gan Qin to notify his subordinates to deliver the news about the perpetrators, several major shareholders of Cathay Pacific once again gathered in the Cathay Pacific conference room to discuss Cathay Pacific Airways.
What is the future of aviation?
I once fully hoped that after acquiring Cathay Pacific, they would be able to open many routes to the mainland, promote exchanges between Hong Kong and the mainland, and at the same time ensure their company's passenger flow.
However, reality has dealt a severe blow to Cao Guangbiao and others. So far, none of the routes applied by Cathay Pacific have been approved by the Hong Kong Transport and Housing Authority. Instead, they are treated differently in flight scheduling, which makes them miserable.
The timing of their flights was pretty bad.
Xiangjiang Airlines is just the opposite of them. Its fleet continues to grow and its routes are not subject to any restrictions. It has also opened flights to Beijing, Shanghai, Jiangcheng, Shuangqing, Chang'an, Huacheng, Huanglong and other cities in mainland China.
Facing the huge monthly losses of Cathay Pacific, some shareholders have already wanted to transfer their shares. However, due to the affection of Cao Guangbiao and Huo Yingdong, and the fact that few families in Xiangjiang will come out to take over,
airlines, therefore they did not take action.
Cao Guangbiao reported to these shareholders during this period of Cathay Fortune and also described the company's operating conditions.
The shareholders sitting here listened to Cao Guangbiao's report on the company, and they were all disappointed with Cathay Pacific. They knew that if there were no sudden benefits, Cathay Pacific would not be able to continue operating unless they were willing to lose hundreds of dollars every month.
Tens of millions of Hong Kong dollars, not counting the depreciation of the aircraft.
They jointly spent HK$5.1 billion to take over Cathay Pacific Airways. They sold off six old aircraft a few months ago and recovered more than HK$20 million in costs.
Cathay Pacific currently has 18 aircraft. The main reason why the price was so high was that Cathay Pacific was still the leader in Hong Kong, and Hong Kong Airlines had not yet started operations.
But now Cathay Pacific's market value is even if it is sold at half the original price, no one will take it over. The Xiangjiang market is already dominated by Xiangjiang Airlines.
Bao Yugang didn't say anything. He didn't care anyway. When he invested in this, he never thought he could make money. Now, if the losses are divided according to shares, he can still afford it. This mainly depends on Cao Guangbiao, Huo Yingdong and Hu Yingxiang.
, these three each held 20 shares, Bao Yu just held 5 shares.
Huo Yingdong said: "Everyone can tell you what you think. Don't worry about face at this time. We are discussing business. I know that some shareholders are relatively short of funds now, and they are still devouring money here every month like a bottomless pit.
Everyone’s funds have therefore been put under great pressure.”
When Luo Yingshi saw that everyone sitting here was silent, he spoke: "If you don't want to start this, let me say a few words. You also know that the financial situation of my two listed companies is quite bad, and the same is true for Cathay Pacific."
We are all businessmen and are losing money every month. We have been doing this with no hope of profit. I think it is time to consider exiting. You said that if we can open a mainland route, the company can make some contribution to the mainland, and it doesn't matter if we lose a little.
But we can’t do anything now.”
With Luo Yingshi taking the lead, several small shareholders spoke one after another, hoping to transfer their shares so that they could escape unscathed.
Cathay Pacific is now a hot problem for them. Not only is it not making money, it also needs to provide you with a portion of funds every month to maintain the normal operation of the company.
They are not the top families in Xiangjiang. Especially when the global economy is currently weak, their profits have dropped significantly. Some families, like the Luo Yingshi family, have suffered financial crises.
They are all trying their best to find funds everywhere to cope with the crisis of the family business, and they are asked to pay out a sum of money every month, which makes them quite unwilling.
Some even hope to transfer their shares as soon as possible and use the recovered funds to improve the current financial situation of their own companies.
Huo Yingdong and others saw that many small shareholders were planning to sell their shares, and he also knew that the current cooperation model could not be maintained.
Now they are unable to purchase the shares held by these people, and it is not easy for them to do so themselves. They were invited in by themselves and others, but now the price is too low. They have an idea in their hearts that the price is too high.
It's impossible to bear it.
Fok Yingdong said: "I think everyone is well aware of the future development of Cathay Pacific. With the existence of the Lee Consortium, our Cathay Pacific basically has no future. It is still the case that the Lee Consortium has not suppressed it. Look at the supermarkets
price war, if he comes to the airline for a month or two, we can only choose to go bankrupt. Now that there are people who are willing to transfer their shares, they will not stop it. I hope you can reduce losses as much as possible."
After the meeting, Huo Yingdong, Cao Guangbiao and Hu Yingxiang exchanged their views on Cathay Pacific's situation.
Hu Yingxiang said: "Yingdong, except for Yugang, other shareholders will be looking for new homes this time. The situation of Cathay Pacific will be even more serious. And in terms of company employees, I am worried that there will be another wave of resignations. Such news
It will obviously make them lose more confidence in the company."
Cao Guangbiao also knew about this situation. He said: "I will hold a staff meeting to calm their emotions and try my best to ensure that Cathay Pacific can operate normally."
Faced with the current situation, Cao Guangbiao can only do so much. Now that even shareholders have lost confidence in Cathay Pacific's future development, how can they ask employees to be confident in the company's future?
Now they are in trouble. The three of them have invested 3.6 billion Hong Kong dollars in it. If Cathay Pacific goes bankrupt like this, their losses will be too great.
In order to acquire Cathay Pacific Airways, they specially sought a bank loan and mortgaged some of their own businesses. If they lost, half of their family business would be lost here.
They are now placing their hopes on the mainland. As long as the Hong Kong issue is resolved as soon as possible, Cathay Pacific will be able to come back to life. If they choose to close the company at this time, their billions of Hong Kong dollars will be wasted. These few people are obviously a little unhappy.
willingly.
Huo Yingdong said: "The three of us hold 60% of the shares. No matter what, our control of the company will not be shaken. In terms of operations, Guangbiao tries its best to make reasonable arrangements for flights to reduce the company's losses."
What makes them helpless is that Youde has continued MacLehose's approach and is very tolerant of the Lee Group. Xiangjiang Airlines is receiving all kinds of preferential treatment as before, and Cathay Pacific Airways is still the same as before.
There is no sign that the Hong Kong government can turn around.