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This Article is From Aug 15, 2019

Cathay Gets Reprieve as China Authority Says Its Demands Met

(Bloomberg) -- China's aviation authority said Cathay Pacific Airways Ltd. complied with recent regulatory demands, providing some much-needed relief for the Hong Kong airline reeling from the scrutiny drawn over its employees taking part in anti-Beijing protests.

The carrier has sent the information of crew members flying to and over mainland as required, Gu Xiaohong, deputy head of the general department of Civil Aviation Administration of China, told reporters in Beijing on Thursday. All the information submitted by Cathay is in compliance with CAAC requirements, he said.

Cathay has emerged as a target for China after some of its employees took part in protests that have gripped Hong Kong for more than two months. The regulator last week accused the airline's employees of threatening safety and ordered the carrier to suspend workers that supported “illegal demonstrations.”

Read More: China Cracks Down on Cathay After Staff Join Hong Kong Protests

Shares of Cathay advanced as much as 5.5% and were up 4.1% at noon in Hong Kong. The stock is down more than 12% since the end of June.

What China Asked Cathay to Do

  • From Aug. 10, Cathay should suspend all those who participated in or supported illegal demonstrations from flying to the mainland or perform any official activities related to air transport on the mainland.
  • From Aug. 11, Cathay should submit for approval a manifest of all crew members flying to and across mainland China airspace. Otherwise, the relevant flights won't be accepted by China authorities.
  • On Aug. 15, Cathay should submit plans on how management will improve flight safety and security to relevant authorities on mainland.
Source:Civil Aviation Administration of China

To contact Bloomberg News staff for this story: Ken Wang in Beijing at ywang1690@bloomberg.net

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Ville Heiskanen, Dave McCombs

©2019 Bloomberg L.P.

With assistance from Bloomberg

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