Cathay Pacific's HK$11.7 billion ($1.5 billion) rights issue, made as part of a government rescue plan, has been oversubscribed. In a filing to the Hong Kong stock exchange on 7 August, after market close, the flag carrier disclosed that it had received offers for 3.43 billion rights shares, compared with the 2.5 billion offered, an oversubscription of 137%. In addition to the minority shareholders that exercised their rights, major shareholders Swire Pacific, Air China and Qatar Airways subscribed for all of the – respectively – 1.13 billion, 751 million and 250 million rights shares provisionally allotted to them under the rights issue. These represent approximately 45%, 29.99% and 9.99% of the total number of rights shares, respectively. The rights issue is the second tranche of a three-tranche HK$39 billion recapitalisation plan for the company. The first tranche was the issuance of HK$19.5 billion in preference shares to Aviation 2020 – a limited company wholly owned by the government – for an undisclosed stake. For the third tranche, Aviation 2020 will provide a HK$7.8 billion bridge loan facility to Cathay. The bailout marks the first time the Hong Kong government has stepped in to rescue a private company.

Source: Cirium

London Heathrow airport employees are being urged by the Unite union to reject proposed pay cuts of up to a quarter, while industrial action is not being ruled out. Unite, which represents more than 4,000 Heathrow workers, says it will "consider all options", including industrial action, if members do reject the proposals. Regional co-ordinating officer Wayne King says Heathrow declined the union's request that the pay cuts be temporary. "Unite is urging HAL [Heathrow Airport Ltd] to withdraw these massive pay cuts and return to the negotiating table where Unite is committed to discussing fair cost reductions," adds King. The airport operator states that its proposal "will guarantee a job at Heathrow for anyone who wants one" and eliminate the need for any redundancies. While vowing to "protect or increase pay for half of our colleagues", Heathrow Airport Ltd confirms that "those on higher pay agreed when aviation was experiencing much better days will have to take a pay cut if they want to stay on". The cuts are in the 15-20% range "for most of those colleagues", it adds. Arguing that "a speedy recovery... is not going to be possible" – given travel restrictions that are "changing daily" and "the ongoing threat of a second wave" of the Covid-19 pandemic – Heathrow Airport Ltd concludes: "We cannot continue operating as we did before. Our final proposal will provide a job for all of our colleagues and ensure the long-term future of the airport. We urge our union partners to accept the revised offer."

SourceL Cirium

Indian investigators probing the fatal Boeing 737-800 overrun at Kozhikode are likely to examine whether tailwinds might have further complicated a night landing in wet conditions, at an airport classified by the country’s regulator as ‘critical’ owing to its table-top design. At least 18 occupants of the Air India Express flight, including both pilots, did not survive after the jet broke up after overrunning runway 10 on arrival from Dubai. Meteorological data from Kozhikode airport indicates wind from 260° at the time which would have generated an 11kt tailwind component in the landing direction. Investigators have yet to clarify whether the aircraft initially intended to land on the opposite direction runway 28. It had approached from the west, aligned with runway 10, before breaking left and circling round, descending along the centreline of 28. The aircraft then climbed away and re-established itself on the runway 10 approach. Western India is currently immersed in the June-September monsoon season. Rain showers and mist at Kozhikode had reduced visibility at the time of the landing to 2,000m, and thunderstorm activity had been present in the vicinity. Critical airports require special operational qualifications for the crew as they pose particularly challenging conditions, such as their runway length, terrain, or prevailing weather conditions. Kozhikode had featured in a list of 11 airports designated ‘critical’ by Indian regulators after another Air India Express 737-800 overran at Mangalore in May 2010 – having also, coincidentally, arrived from Dubai. While the table-top runway at Mangalore was dry, and winds calm, the aircraft had landed long and the captain tried belatedly to abort. Table-top runways are positioned on elevated terrain with steep slopes outside of the runway boundary, posing the risk of serious structural damage in the event of an overrun. Kozhikode’s runway 10 is 2860m (9,380ft) long and is equipped with landing aids including ILS. It features a runway end safety area around 90m in length. The runway’s slope is slightly positive – although only 0.12% upwards. India’s aeronautical information publication states that operators must ensure captains and flight crew operating to the airport at night have “sufficient experience in terms of flying hours” as well as daylight operating experience at Kozhikode. All approaches at night must be initiated only with an instrument procedure, it adds. The airline’s standard procedures required the captain to carry out approach and landings to critical airports. Air India Express says the captain of the ill-fated Kozhikode flight, an ex-air force pilot, was “experienced” on the 737-800 and had previously flown Airbus A310s, adding that he was an “accomplished” fighter pilot.

Source: Cirium