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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…

By Luann Reagan , in Industry News News , at December 9, 2019 3:53 AM EST Tags: , ,

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.