Hong Kong Airlines troubles.

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  • rferguson

    It seems like Hong Kong Airlines is in a very delicate position.

    – it has announced it will not be able to pay staff ontime.


    – it has cut all long haul routes. San Francisco and Australia were already suspended. It has announced it will cut LAX early 2020. And then its final longhaul route, Vancouver, will be shelved Feb 10th.

    – it is suspending all inflight entertainment from Dec 1st. I’m guessing because they cannot afford to pay for content or licensing?


    I’m sure Cathay will be breathing a sigh of relief as HK Airlines was entering their main North American and Australian markets and about time there was a local competitor to Cathay. Although I imagine this came with huge capital expenditure on aircraft leases and the drop in demand for travel to HK with the issues at the moment would not have helped.

    It seems to be a bit of a replay of JetAirways….unable to pay for staff….cutting longhaul routes and returning expensive aircraft leases.


    It indeed looks as though Hong Kong Airlines is indeed about to go the way of the Dodo

    The controlling shareholder HNA group is in very serious (perhaps also terminal) difficulty itself and is probably unable or unwilling to bail them out.

    The below issued by Hong kong authorities at 13.30 hours today.

    (Reuters) – Hong Kong Airlines, controlled by cash-strapped Chinese conglomerate HNA Group, must shore up its financial position by Dec. 7 or it risks the suspension or loss of its license, the Hong Kong government said on Monday.

    Hong Kong’s Transport and Housing Board (THB) said it met with the city’s second-largest airline on Nov. 27 and expressed “grave dissatisfaction and deep concern” that the carrier’s financial position had not improved.

    THB on Monday attached new conditions to the airline’s license, requiring it to raise cash and maintain certain cash levels.

    Airport Authority Hong Kong said it was “very concerned about the financial situation” of Hong Kong Airlines and the potential impact on its passengers.”

    It is though of very little benefit to Cathay Pacific if HKA goes west as this will leave them as owning all 3 Hong Kong based airlines and with no competition, a situation that is unlikely to be allowed last indefinitely
    Perhaps a case of better the devil you know….applies here.

    1 user thanked author for this post.


    An HNA group Capital Airlines A330 was repossessed in Melbourne last week for non payment of bills – presumably the lease or landing fees.


    From what I can gather from local media and friends Hong Kong Airlines is very likely to see none of the money.
    HNA groups debt pile is huge and the 4.4 billion will not go far with many airlines within the group also on the brink of failure however HNA is almost too big for the Chinese Government to let them fall over completely and anything could happen.
    For more than a year HNA has strongly resisted supporting HKA with then available cash however the group is such a corporate mess changes of direction are frequent.
    HKA is a small and insignificant loss making subsidiary airline (not wholly owned by HNA) within the large debt ridden group and it very possible that HNA will cast it adrift.
    If so it will likely fail within days.


    Having flown HX I have to say I shan’t mourn its passing. Although I was very entertained on checking in at Santa airport to see that they offered priority to martyrs (see bottom left of the picture). I spent some time wondering how that works…



    Perhaps it is referring to the cancellation of all IFE on all flights due to non payment to the provider.
    Best to bring a sandwich if traveling on HKA as I was told that the caterers have not been paid lately ether.

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