By Gina Lee
Investing.com – Cathay Pacific Airways (OTC:CPCAY) Limited (HK:0293) could receive an equity injection from Qatar Airways, its third-largest shareholder.
Despite itself also being hard hit by the collapse in travel due to the COVID-19 virus, Qatar Airways can help and would be willing to provide the injection if asked.
The Qatari flag carrier owns a 9.99% stake in Cathay and previously expressed interest in increasing its share. Cathay’s two other main shareholders are Swire Pacific (OTC:SWRAY) and Air China (OTC:AIRYY), holding 45% and 29.99% stakes respectively.
Cathay raised HK$5.45 billion ($703.15 million) in March from the sale and leaseback of six Boeing (NYSE:BA) 777 planes and closed most of its North American bases.
Qatar Airways has already reduced its fleet to a quarter, and aims to fly to 80 out of its 170 destinations by June.
Meanwhile, Qatar Airways also announced that it had acquired certain A and H shares in China Southern Airlines on December 28 last year adding up to a 5% stake in the Chinese airline.
Cathay shares were down 1.21% to HK$8.99 ($1.16) by 12:31AM ET (5:31 AM GMT).