Published on Tuesday, December 3, 2019

Hong Kong airline given five days to find more cash

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.

Story Image

Your Comments

, be the first to post a comment.
Your email:

Email other comments made to this story

NOTE: Comments are subject to admin approval before being posted.
Mole Poll
Has business been non-stop since the relaxation of quarantine ?
Yep 48.56 %
Nope 51.44 %

Thank you for your vote

What is GoodtoGo?

Submit your news
or special offer

Current UK Special Edition

Current US Special Edition

Current Asia/Pacific Special Edition

LATEST 'MOLE VIDEOS see a new way of working post Covid

Traveltek adopt a new way of working but plan to expand product portfolio post Covid-19

Jamaica prepares to open for business ... Donovan White talks to TravelMole

Expedia Travel Agent Affiliate Program (TAAP): Meet Alfonso Paredes, Senior Vice President