Final call for Hong Kong Airlines to save itselfLocal | 2 Dec 2019 2:13 pm
Owners of the financially troubled Hong Kong Airlines has been ordered to inject new cash, or secure new investment within five days, or risk losing its license.
The Air Transport Licensing Authority said today it has to act to prevent further deterioration of the carrier's situation to protect public interest.
The debt-laden Chinese conglomerate HNA Group owns the airline, which mostly files to Southeast Asian and Northeast Asian destinations.
On Friday, the airline announced that it can only pay cabin crew and overseas employees their November wages on time, while all other Hong Kong-based workers will be paid on December 6.
“This one-off salary arrangement does not impact our daily operation,” Hong Kong Airlines said in a statement.
The carrier also promsed a smooth smooth service to all customers.
The Civil Aviation Department said in a statement today it is “concerned about the latest financial situation'' of Hong Kong Airlines. “including its inability to pay salaries to its entire staff in one go earlier.''
The Airport Authority Hong Kong also expressed concern "about the financial situation” of the airline and the potential impact on its passengers.
The Transport and Housing Bureau said in a statement that Hong Kong Airlines has been told that the carrier is responsible for getting prepared for different operational circumstances, including unanticipated ones.
The bureau said it reminded the airline of obligations to provide services to passengers and to take care of its employees.