HKA in talks with several groups over funds

Business | 10 Jan 2019 5:47 pm

Mainland media reported that Hong Kong Airlines is looking for funds and is in discussion with several groups including Cathay Pacific (0293).

The comprehensive negotiations included several layers from network coordination to equity cooperation, which would be a key factor to HNA's decision on entering which international airline alliance.

The three large airline alliances in the world include Star Alliance established in 1997, One World founded in 1999 and Sky Team set up in 2000.

HNA used to be deemed as " the fourth largest alliance" with operating several airlines including Hong Kong Airlines and low-cost Hong Kong Express Airways, as HNA did not become part of an alliance.

Hong Kong Airlines was reportedly in cash crunch recently as bonds worth US$550 million (HK$ 4.3 billion) will be due on January 20.

On Monday, a foreign media report said that China Development Bank was willing to bail out the Hong Kong-based carrier.

It is said that China Development Bank, the largest creditor of HNA, would have a chance to lend loans to HNA and then HNA may make some arrangements to let Hong Kong Airlines pay the loans.

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