By continuing to use the site, you agree to the use of cookies. You can find out more by following this link.  OK  Find out more

 
Latest Aviation News Air transport TROUBLED HONG KONG AIRLINES ALLOWED TO KEEP OPERATING

Troubled Hong Kong Airlines allowed to keep operating

AFP
09/12/2019 | 408 words
Troubled Hong Kong Airlines allowed to keep operating
Le Journal de l'Aviation - All rights reserved

Cash-strapped carrier Hong Kong Airlines was handed a lifeline by regulators on Saturday after they decided not to punish it for delaying salary payments amid an ongoing financial crisis.

The international finance hub has seen six months of protests which has dealt a massive blow to the tourism sector and airline operators.

Hong Kong Airlines is owned by struggling Chinese conglomerate HNA Group, which has been looking to lower its debt burden.

Last month the carrier announced it would delay salary payments to some staff as it struggled to find cash, triggering a warning from regulators that their license might be at risk.

But earlier this week, the company announced it had found a last minute injection of funds.

"The Civil Aviation Department has been satisfied that Hong Kong Airlines is able to continue to operate properly and safely," a spokesman for the Hong Kong Civil Aviation Department said on Saturday.

The city's Air Transport Licensing Authority (ATLA) said on the same day that the airline has met the conditions for raising and maintaining its cash level.

The authority added that it will continue to monitor the carrier's operation closely.

In late November, the carrier said its business was "severely affected" by the social unrest in the city and a sustained weak travel demand, which also impacted its payroll.

The licensing authority later required the airline to raise a significant amount of funds within a deadline in order to prevent its financial situation from deteriorating and to protect public interests.

Earlier this year, HNA unloaded budget carrier HK Express to rival Cathay Pacific and cut some operations.

On Wednesday, in a letter to staff and colleagues, the carrier's chairman Hou Wei said "an initial cash injection plan has been drawn up."

Although the amount of cash was not disclosed, the chairman said the company would pay outstanding salaries to staff on Thursday and the airline's services will gradually return to normal as soon as the funds arrive.

The tourism industry in Hong Kong has been battered by nearly six months of pro-democracy protests that have become increasingly violent.

Visitor arrivals have tanked with arrivals from the Chinese mainland plummeting, hammering retail sales and helping to tip the city into recession.

 
 
 
 
Related articles

Cathay Pacific to buy budget airline HK Express for $628 mn

14:18 CET SpaceX in 'perfect' test of Crew Dragon emergency abort system
16/01 Safran Landing Systems wins a new MRO contract for easyJet's A320 family fleet
16/01 Airbus A350: first Trent XWB engine serviced and delivered back by N3
16/01 LATAM group also to use Donecle's drones for its cell inspections
16/01 Delta TechOps seeks to double its turnover within five years
16/01 SAS Scandinavian Airlines Airbus A320neo fleet to be fully maintained by Magnetic MRO
13 JAN 2020
GAMECO Qingyuan Branch completed the first in-house overhaul of a 777-200 landing gear set. It was delivered back to CHINA SOUTHERN AIRLINES. The Guangzhou-based airline operates a total of 27 Boeing 777 aircraft and the expected landing gear overhaul business volume for GAMECO is important. The stand-alone landing gear maintenance center of GAMECO obtained the CAAC and FAA license for this type of landing gear last year.
10 JAN 2020
DASSAULT AVIATION will hold seven Falcon Maintenance & Operations (M&O) seminars in April and May in France, the United States, Mexico and Brazil, and a further one in China in October. In addition to the traditional technical briefings and the presentation of Dassault's latest products and services, Jean Kayanakis, Senior Vice President, Worldwide Customer Service and Service Center Network, will provide an update on the expansion of the service center network with TAG Maintenance Services and ExecuJet MRO Services.
12 DEC 2019
PRATT & WHITNEY CANADA and INDύSTRIA DE AVIACAO E SERVICOS (IAS) opened an overhaul centre in Belo Horizonte, which will specialize in the maintenance of the PT6A and PW200 engines, the manufacturer's designated maintenance facilities (DMFs) in the country, all integrated within two years to meet the rapidly growing Brazilian demand for these two engine families (1,300 equipped aircraft).
09 DEC 2019
SR TECHNICS announced an extension of its partnership with GMF AEROASIA covering component services for Garuda Indonesia's fleet of Airbus A330NEO and A330ceo aircraft. This Integrated Component Services (ICS) contract, effective since November 1, will be provided by the SR TECHNICS Center of Excellence for component maintenance in Kuala Lumpur (Malaysia).
09 DEC 2019
PRATT & WHITNEY announced a USD 30 million investment in its engine services facility in Bridgeport, West Virginia for the maintenance, repair and overhaul (MRO) of PW800 engines. Specifically, the site will service the market leading PW814GA and PW815GA engines that power the Gulfstream G500 and G600 aircraft, respectively, with the capacity to expand its capabilities to other PW800 engine models in the future.
ALERTAVIA, the News platform for Aerospace and Defense industry Professionals.

Featured Content
AFI KLM E&M steps up a gear on CFM's LEAP
Sabena technics finally gets back on-board C-130Hs
Airbus and Thai Airways to launch a new joint venture MRO facility at U-Tapao
How Thai Airways will Expand Rolls-Royce's Trent Engine Service Network
China embarks on board aircraft recycling
 
LATEST NEWS   CIVIL AEROSPACE   MRO & SUPPORT   AIR TRANSPORT   DEFENCE   SPACE
Follow us
© 2020 Le Journal de l'Aviation - All rights reserved