Sources familiar with the situation said the announcement had pre-empted a plan by some lawmakers to call for Cathay to restart the Saudi route, which was axed in March 2017.
“When the government is in need of expanding into the Middle East, our flag carrier has the right to operate the route but doesn’t offer direct services to Riyadh,” one source said.
The source added that the government’s delegation led by Chief Executive John Lee Ka-chiu had to take indirect flights last year, which was not conducive to business.
The news came as lawmaker Jeffrey Lam Kin-fung, also a member of the government’s key decision-making Executive Council, called for Cathay to offer perks to the public after it posted a massive profit for its last financial year.
“The government rescued Cathay with public money to ride out the difficulties during the coronavirus pandemic,” Lam said
Authorities mounted a multibillion-dollar bailout to help tide the company over the coronavirus crisis, which…