[Hong Kong Airlines Crisis] Air Transport Licensing Authority: No further action on Hong Kong Airlines

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Written by: Chen Jingqi

2019-12-07 16:52

Hong Kong Airlines is in financial distress, and the Air Transport Licensing Authority asked Hong Kong Airlines to improve its financial situation on Monday (2nd), including capital injection and maintaining or enhancing cash flow. If the proposal is not submitted by the deadline, the authorities will take further action, including revocation or temporary license The card will be cancelled and the decision will be announced today (7th).

Hong Kong Airlines issued a letter to employees this Wednesday (4th) stating that the required capital injection plan was initially met after urgent consultations, and documents were submitted to the authorities the next day. The Licensing Authority announced today (7) that it has decided not to take further action against Hong Kong Airlines for the time being.

Hong Kong Airlines was in financial difficulties. It had previously announced that it would reduce its existing flights by about 6%. It will suspend flights in Los Angeles, Tianjin, and Vancouver in February next year. It also announced that it would stop providing in-flight entertainment system services in December. (Profile picture)

Air Transport Licensing Authority: Hong Kong Airlines has raised cash to levels set by the Administrator

The Air Transport Licensing Authority stated that Hong Kong Airlines had submitted the latest financial information and statements to the Licensing Authority. The Licensing Authority held a meeting yesterday (6th) to discuss the latest situation of Hong Kong Airlines and reviewed the information submitted by Hong Kong Airlines. It is believed that Hong Kong Airlines has upgraded its cash and deemed the cash inventory to be set by the Licensing Authority under the new conditions of the Licensing Authority Level, and promise to continue to maintain relevant levels.

Hong Kong Airlines has reported financial difficulties many times in recent years. On the 4th of last month, it stated that it is facing a challenging business environment. It also said that continuous demonstrations in Hong Kong since June have affected passenger demand and further affected the company's business and revenue. 6% of flights, including the suspension of Los Angeles flights from February next year, and further cuts and adjustments to some destinations, including Okinawa, Sapporo, Tokyo and other destinations to face fierce competition and excess market capacity.

Hong Kong Airlines subsequently announced on the 29th and 30th of the same month that it would further suspend flights from Vancouver, Ho Chi Minh City and Tianjin from February 10 next year, and cease to provide in-flight entertainment system services from December 1 until further notice. Port Airlines also said that it is cooperating with system suppliers and hopes to resume service as soon as possible.

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