Hong Kong Airlines is asking the city’s government to consider helping out other carriers after it agreed to a bailout plan for Cathay Pacific, according to a report from Hong Kong-based newspaper, The South China Morning Post (SCMP).
The airline said the following in a statement shared with SCMP: “We hope that the government will consider their recent airline bailout plan in conjunction with support for other Hong Kong-based carriers, who also help to maintain Hong Kong’s status as an aviation hub.”
“We are committed to serving Hong Kong and always open to strong strategic investors to secure our long-term development,” it added.
Earlier this month, the Hong Kong Government agreed to give Cathay Pacific a bailout which forms the majority of the broader HK$39 billion (US$5 billion) recapitalisation plan outlined by the airline to overcome the coronavirus crisis.
Cathay Pacific said its three part HK$39 billion ($5 billion) recapitalisation plan is designed to provide the airline “with sufficient funds to withstand the industry-wide downturn”.
According to the SCMP report, Hong Kong Airlines has received more than 1 billion yuan (US$141 million) in extra funds since January to help repay maturing debt.
Citing anonymous sources, the SCMP report added that the HNA working group authorised several Chinese state-owned banks to provide the carrier with fresh capital.
SCMP’s sources also said the financial support spares the Hong Kong government from bailing out another troubled carrier for now.
