Honk Kong Airlines Decides Against Losing License Over Financial Instability

A Hong Kong, air transport regulator, stated Saturday it decided against rejecting the license of Hong Kong Airlines, the city’s second-largest carrier after it struggled for funding.

The airline, half-owned by cash-strapped Chinese conglomerate HNA, stated Wednesday it had a cash injection plan enabling it to pay outstanding salaries to workers the next day.

Air Transport Licensing Authority (ATLA) mentioned in a statement on Saturday, the cash injection plans have been satisfactory, including that it would proceed to monitor the agency’s operations closely.

ATLA had warned the carrier it needed to lift its financial position by December 7 or face suspension of its license.

“ATLA has given careful consideration to elements including public interests and the coverage path of sustaining Hong Kong as a global aviation hub,” an ATLA spokesperson said.

“Hong Kong Airlines is here to stay,” the corporate mentioned in a statement after the ATLA decision.

“We will also actively talk with our service providers to resolve outstanding financial issues and steadily bring our service back to normal.”

Hong Kong Airlines and more significant competitor Cathay Pacific Airways are battling a steep slump in demand as a result of months of anti-government demonstrations in the financial center.

Hong Kong Airlines was in a precarious financial position even before the unrest in the region. The unlisted firm in April told shareholders it had lost HK$ 3 billion ($383.39 million) last year, people familiar with the matter said.

It has declared several capability cuts, along with the suspension of flights to Vancouver, Ho Chi Minh Metropolis, and Tianjin.

By Luann Reagan

Luann Reagan is a freelance journalist with 18 years of combined experience in the news, communications, copywriting, and marketing. For over a decade, she served as editor for a few local newspapers and has also written for the Associated Press. As a self-proclaimed Tech Evangelist, Luann especially enjoys writing articles for Aerospace & Defence Talks. Currently, Luann contributes articles on overall industry updates.

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