Hong Kong Airlines back from the brink

Another aviation near-collapse was averted last week after Hong Kong Airlines met a government deadline to raise new funds or risk losing its licence to fly. Local media said on Saturday the carrier had secured the investment in time to head off the sanctions.

The carrier was given four days on Monday to find the money to pay employees or risk having its operating licence suspended or even revoked. The next day, the airline released a statement vowing to take all necessary action to avoid any lay-offs.

The South China Morning Post reported that later the same day, a Shanghai Stock Exchange filing revealed the carrier’s biggest stakeholder had secured a loan of HK$4.4bn (about £420m).

The Air Transport Licensing Authority (ATLA) said it was satisfied the carrier had met two new licence conditions which forced it to find significant new funding. However, the authority said it remained concerned about the carrier’s weak financial situation.

“The government has decided against punishing Hong Kong Airlines (HKA) further over its financial black hole,” the Post said. “With more than 3,500 jobs on the line and hundreds of thousands of bookings at risk ahead of Christmas, staff and customers can breathe a sigh of relief at Saturday’s announcement.”

(See also SAA is given cash lifeline in this issue)

www.hongkongairlines.com

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