Cash-strapped Hong Kong Airlines has seven planes impounded
Hong Kong Airlines had seven of its plane impounded at Hong Kong by the Airport Authority due to outstanding payments.
The planes were seized in accordance to a Airport Authority Ordinance and could be sold off if debts are not paid within 60 days.
Neither the airline nor the airport authority disclosed the nature of the unpaid bills but the South China Morning Post reports HK Airlines could owe up to HK$17.2 million in unpaid airport fees.
The airline came close to having its airline permit revoked last week over its perilous financial situation but managed to convince the Air Transport Licensing Authority it had new funds to stay afloat.
HK Airlines is backed by Chinese conglomerate HNA Group which itself has a major multi-billion dollar debt pile it has been struggling to service.
The airline’s financial woes were evident before the Hong Kong protests began and since then they have got progressively worse.
It has cut several routes and from early next year will no longer operate long haul flights.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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