SYDNEY - China's aviation regulator may make it difficult for Hong Kong's Cathay Pacific Airways Ltd to merge regional arm Cathay Dragon into its main brand because of infractions during last year's pro-democracy protests, two sources said.
China's aviation regulator stepped up inspections of Cathay planes last fall after warning the airline that staff participating in anti-government protests in Hong Kong would no longer be allowed to fly to mainland destinations or even in Chinese airspace. Cathay, which is doing a strategic review amid the collapse in demand related to the coronavirus, declined to comment on its plans for Dragon, its demerit points and its talks with the CAAC.
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