[Hong Kong Airlines Crisis] AA detains 7 idle aircraft of Hong Kong Airlines

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Written by: Li Enci, Liang Huanmin

2019-12-16 19:31

Hong Kong Airlines plunged into a "stuck" crisis earlier this month, and after urgent consultations met the funding injection plan, the Air Transport Licensing Authority decided not to take any further action for the time being. However, Hong Kong Airlines, which had just escaped the calamity, again owed arrears. Hong Kong Airlines was detained by the AA for seven aircraft due to arrears. The AA stated that it was protecting financial rights.

It is reported that Hong Kong Airlines defaulted on the parking fees of the AA, so the bureau cited regulations to detain the 7 aircraft.

Hong Kong Airlines was detained by the AA for seven aircraft. (Profile picture)

An AA spokesperson confirmed that the Airport Authority detained seven idle Hong Kong Airlines aircraft in accordance with Article 40 of the AA Ordinance to protect financial rights. According to the AA, the detained aircraft has not been used for passenger purposes in recent months.

A spokesperson for Hong Kong Airlines said that because Hong Kong Airlines is conducting network integration, some aircraft are currently not scheduled for service and temporarily suspended under the arrangements of the AA, but the current operations of Hong Kong Airlines remain normal.

Hong Kong Airlines began a financial distress scandal last year. This year's financial situation has deteriorated further, and the monthly salary of over 1,000 employees has been postponed.

The Air Transport Licensing Authority issued two new additional conditions to Hong Kong Airlines on the 2nd of this month, including capital injection and maintaining or enhancing cash flow, requiring Hong Kong Airlines to improve its financial situation, triggering a "pinning" crisis. Hainan Airlines Holdings, the parent company of Hong Kong Airlines, announced on the Shanghai Stock Exchange that night that it had applied for a 4 billion yuan loan (about 4.4 billion Hong Kong dollars). After urgent consultation, Hong Kong Airlines has initially met the funding injection plan. The Air Transport Licensing Authority announced on July 7 that it has decided not to take further action on Hong Kong Airlines for the time being, but will continue to closely follow the overall operating conditions of Hong Kong Airlines, requiring Hong Kong Airlines to continue to improve its operations. Operational efficiency and adjustment of long-term operating strategies, and appropriate actions will be taken when necessary.

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