News

Hong Kong Airlines to cancel A380 order

29 Jul 2014 by Clement Huang

Hong Kong Airlines (HX) is rumored to be in negotiations with Airbus over the cancellation of its ten-aircraft-strong A380 order.

Quoting sources close to the carrier’s operations, Reuters says the carrier’s decision was brought on by an order for 40 A320neo and 30 A321neo placed by HNA Group sister firm, Hong Kong Aviation Capital (HKAC), at this month’s Farnborough Airshow.

HX and the A380 have had a difficult history. Rumours of the carrier cancelling its order have been circulating since it was placed in June 2011. In 2012, HX threatened to cancel the order following a European Union decision to introduce a carbon emissions taxation scheme aimed at charging international carriers for not only their emissions produced when flying over EU territory, but also for the emissions produced flying outside EU airspace.

Earlier this month, HX restarted its plan to launch a dual currency initial public offering (IPO) on the Hong Kong Stock Exchange later this year in what could be the city’s first IPO to raise funds in Chinese yuan and Hong Kong dollars. The carrier’s IPO in 2012 failed for unspecified reasons.

Looking to expand and purchase additional aircraft, Hong Kong Airlines is aiming to raise US$500 million. The airline currently operates a fleet of 23 Airbus aircraft, mostly A330 widebodies, and has reported profits for three consecutive years even though its results have never been made publicly available. 

Hong Kong Airlines was not available for comment.

For more information, visit hongkongairlines.com

Dominic Sebastian Lalk

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