Hong Kong airline given five days to find more cash
Published on Tuesday, December 3, 2019
Hong Kong authorities are threatening to remove Hong Kong Airlines’ licence unless if finds more cash by the end of the week.
The airline has already delayed salary payments to around half of its workforce and it has ditched all its long-haul flights.
The Air Transport Licensing Authority said: “After careful consideration of the financial position of HKA at present, ATLA must take immediate and resolute action to prevent further deterioration of its situation in order to protect public interests.
“If HKA fails to improve its financial situation ATLA will take further action which provides for the revocation or suspension of the licence.”
What the Mole says:
The airline’s main backer, Chinese conglomerate HNA Group, could potentially pump more money into the business as it has recently secured a $568 million restructuring deal for another of its airline businesses, West Air, which could free up some funds for Hong Kong Airlines.
However, HNA has a several billion dollar debt pile and it has been trying to sell its stake in Hong Kong Airlines for about two years.