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Hong Kong Airlines has one week to save licence
Published on: Tuesday, December 03, 2019
By: Bloomberg


Photo Source: Bloomberg
HONG KONG: Hong Kong Airlines Ltd must improve its financial situation by the end of this week or risk losing its license, aviation regulators said.

The city’s third-biggest carrier – which is already delaying salaries for much of its staff – must get an injection of cash and keep it at an appropriate level, the Air Transport Licensing Authority said in a statement.

Failure to do so risks further action, including the loss or suspension of its license, Atla said.

The regulator will announce its decision by Dec 7.

“Atla found the situation extremely worrying,” it said.

The Transport and Housing Bureau also expressed “grave dissatisfaction and deep concern” that Hong Kong Airlines’ financial position hadn’t significantly improved.

Meanwhile, the Civil Aviation Department asked the company to confirm it’s able to continue operating and still comply with regulations.

The outcome could determine if its Air Operating Certificate is suspended or revoked, the department said in a statement.

Hong Kong Airlines didn’t immediately respond to requests for comment.

The carrier’s finances have been under scrutiny all year, but business worsened as months of pro-democracy protests dented tourism as well as the local economy.

Other airlines have suffered too, including Cathay Pacific Airways Ltd, which has issued profit warnings and plans to reduce capacity next year.

Hong Kong Airlines announced changes to its route network Friday, including the discontinuation of direct flights to Vancouver, Ho Chi Minh City and Tianjin.

“Hong Kong Airlines will continue to monitor the situation closely and adjust its business plan accordingly to ensure that it remains commercially viable and sustain its long-term growth,” it said.

 



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