[cwoodward]

Reuters US reporting financial issues at HKA are very substantial with over a 3 billion loss last F year.The huge bailout needed may not be supported by major shareholders.
https://www.reuters.com/article/us-hnagroup-hkairlines-exclusive/exclusive-hna-linked-hong-kong-airlines-seeks-255-million-from-backers-to-keep-license-idUSKCN1RO0JC

[Folium]

Looks like HKA is set to join the list of failed airlines in 2019.
Without being overly casual about this likely failure, what is intriguing is how the mainland airlines react. The problems with HKA have been exacerbated by the massive debts clocked up by its owner HNA group. There are reports that Air China approached HNA last year about purchasing the key asset of Hainan Airlines.
Having sold HK Express to Cathay, and unloaded its holdings in TAP (9%), Comair(6%) and the Brazilian Azul(24%), and most recently the huge sale of its airline catering business Gategroup, Hainan remains the key holding in HNA’s airline portfolio.
Whichever Chinese company gets the nod from Beijing to buy Hainan this will probably start a round of consolidation that many analysts have expected for a while.
Meanwhile if HKA does fail Cathay will be sitting pretty at HKG owning all 3 local players.

[Folium]

[quote quote=929562]Looks like HKA is set to join the list of failed airlines in 2019.

Without being overly casual about this likely failure, what is intriguing is how the mainland airlines react. The problems with HKA have been exacerbated by the massive debts clocked up by its owner HNA group. There are reports that Air China approached HNA last year about purchasing the key asset of Hainan Airlines.

Having sold HK Express to Cathay, and unloaded its holdings in TAP (9%), Comair(6%) and the Brazilian Azul(24%), and most recently the huge sale of its airline catering business Gategroup, Hainan remains the key holding in HNA’s airline portfolio.

Whichever Chinese company gets the nod from Beijing to buy Hainan this will probably start a round of consolidation that many analysts have expected for a while.

Meanwhile if HKA does fail Cathay will be sitting pretty at HKG owning all 3 local players.[/quote]

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