appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

appConfig

filter

json

liveArticle

Danny Lee

Hong Kong Airlines will cut 7 per cent of passenger flights until the end of the year as it responds to a sharp fall in demand that is deepening its financial problems.
The city’s third-largest airline said it would shrink its business in an attempt to limit losses from thousands of customers cancelling Hong Kong travel plans.
Unrest over 15 consecutive weekends has caused the number of tourists coming to the city drop sharply. Some 40 per cent fewer people visited in August, Financial Secretary Paul Chan Mo-po said last week.
The airline will also slash the number of available air tickets for sale by 9 per cent.

“Travel demand has declined sharply due to recurring issues in Hong Kong. In response to the current market conditions, we have temporarily reduced our capacity,” a spokeswoman for Hong Kong Airlines said.
Cathay Pacific Airways, which controls three of the city’s four passenger airlines, said last week it would no longer expand by 6 per cent over the winter as it grappled with the protests and the impact of pressure from Beijing – factors which have led to steep declines in business on mainland China routes.
Only three weeks ago, Hong Kong Airlines warned staff they faced unpaid leave and reduced working hours as travellers deferred or cancelled trips due to the increasingly violent unrest, causing a cash-flow shortfall.
Addressing the cut in flights, the company said it had left open the possibility of more reductions, hinting at putting staff on unpaid leave, but stressed there was “no plan” for job cuts.
Hong Kong airport posts biggest drop in a decade – 851,000 fewer travellers
“We will continue to monitor the situation closely and make further adjustments if required, including internal arrangements to support our operation in the coming months,” a company spokeswoman added. “Hong Kong Airlines remains committed to offering a sustainable travel service to our customers.”
The price of oil jumped as much as 20 per cent on Monday following a weekend attack on a Saudi oil facility, making jet fuel more expensive, which is set to pile even more pressure on Hong Kong Airlines’ dire finances.

The oil price spike sent airline stocks tumbling, with Cathay Pacific falling 4 per cent on Monday.
Jet fuel is the single biggest variable cost for an airline and typically accounts for a third of a carrier’s overall expenditure.
Hong Kong Airlines’ training centre opening postponed amid city protests
On average, Hong Kong Airlines has 50 passenger flights departing the city daily. In total, Hong Kong International Airport handles 450 departures carrying passengers every day, half of them from Cathay Pacific Group airlines.
Recently, the airline has been cancelling flights on an ad hoc basis, which a source said would form the basis of how it would trim its flying schedule.
A flight each to Sapporo, Hanoi and Male, in the Maldives, was cancelled on August 14. By August 15, a Sapporo and Seoul flight was axed. On August 16, a Hanoi and a Male flight did not fly.
Is Hong Kong Airlines set to bail out of long-haul flights completely?
Hong Kong Airlines, which is backed by the heavily indebted Chinese conglomerate HNA Group, faces an increasingly difficult financial position.
Its money troubles became public late last year over concerns it was unable to repay a large amount of debt.
Earlier this year it endured months of boardroom turmoil, sudden management changes and a shareholder battle for control of the ailing airline.
For now, the airline still awaits possible investment from new shareholders to inject much needed cash into the privately held company, however, investing in Hong Kong in general has become unattractive with the ongoing protests.

Hong Kong Airlines reported a 13 per cent decline in travel for August.
Meanwhile, the Cathay Pacific Group announced an 11.3 per cent drop in passengers travelling in August compared with the previous year, including a 38 per cent slump in arrivals to the city, leading to a hiring freeze and cost-cutting.
Cathay Pacific suspended Dublin flights over the winter, removed daytime flights to Paris and Frankfurt and trimmed the number of flights to Vancouver, New York JFK and Washington.
Who has gained from Hong Kong airport’s record drop in passengers?
Cathay Dragon suspended flights to Medan, Indonesia, and one daily flight each to Beijing and Tokyo.
The changes to Cathay’s flight schedules would take effect at the end of October.
Hong Kong Airport said over the weekend it shed 851,000 visitors in August, a decline of 12.4 per cent on the previous year, during the busiest month of the year for air travel.
Foreign airlines have also made changes. Australia’s Qantas cut its Hong Kong capacity by 7 per cent, by switching to smaller widebody planes and, as of last weekend, United Airlines was set to slash the number of seats it sells to the city by 25 per cent by the winter.


4 plead guilty to rioting during 2019 PolyU siege in Hong Kong

Hong Kong court confiscates HK$674,860 from 3 defendants in terrorism trial

Diplomatic row over Hong Kong-linked spying convictions in UK heats up

Why Cantopop star Kay Tse chose Hong Kong over the lucrative mainland Chinese market

Hong Kong protests

Hong Kong Airlines to reduce number of flights as protests take toll on carriers

The flight schedule of Hong Kong Airlines is being cut back as protests aggravate the carrier’s financial issues. Photo: Shutterstock

(L-R): Financial Secretary Paul Chan Mo-po, and Secretary for Commerce and Economic Development Edward Yau Tang-wah, meet the media at the Central Government Offices in Tamar on further measures to support small and medium enterprises. 04SEP19 SCMP / May Tse

Travellers and airline crew as well as protesters have been forced to get off their buses at the bridge connecting Tung Chung and Chek Lap Kok and make their way to the airport on foot as protesters plan to cripple airport services at the Hong Kong International Airport. Anti-extradition bill protesters of campaign "suck with you", gathered at the Hong Kong International Airport and set barriers to block the road, caused airlines to delay and cancel flights. 01SEP19 SCMP / K. Y. Cheng

Riot police fire tear gas at protesters as they hold another rally and march from East Point Road in Causeway Bay to Chater Garden in Central. 15SEP19 SCMP / Dickson Lee

Hong Kong Airlines staff face unpaid leave and reduced working hours as travellers deferring or cancelling trips cause cash flow shortfall

Hong Kong Airlines staff face a bumpy ride. Photo: Shutterstock

Over than 5,000 demonstraters are returning to the Hong Kong International Airport on Lantau Island on Monday with anger triggered by a female protester who was shot and feared losing her eye a day before amid protests. 12AUG19. SCMP/ Felix Wong

Hong Kong Airlines postpones public debut of new US$229 million training centre, citing ‘recurring issues’ in city following city protests

Anti-government protesters disrupted transport links to Hong Kong International Airport on September 1. Photo: Sam Tsang

Travellers and airline crew as well as protesters have been forced to get off their buses at the bridge connecting Tung Chung and Chek Lap Kok and make their way to the airport on foot as protesters plan to cripple airport services at the Hong Kong International Airport. Anti-extradition bill protesters of campaign "suck with you", gathered at the Hong Kong International Airport and set barriers to block the road, caused airlines to delay and cancel flights. 01SEP19 SCMP / Felix Wong

Citic Group, Wuxi company and Henry Tang’s family in talks to buy Hong Kong Airlines, putting an end to boardroom tussle

Hong Kong Airlines is the city’s third-largest carrier. Photo: Dickson Lee

Details of the Hongkong Airline's first A350-900. Photo: Airbus.

graphic for online Some of HNA's asset disposals so far in 2018 Time of announcement Asset Amount Buyer January The One York office A$205 million Blackstone building in Sydney, Australia (US$165 million) Group February Shareholdings at Around 300 Assorted Deutsche Bank million euros investors (US$375 million) February Two land plots in HK$16 billion Henderson Land Kai Tak, Hong Kong (US$2 billion) Development March One land plot in HK$6.36 billion Wheelock Kai Tak, Hong Kong (US$811 million) Company March Shareholdings at Park Hotels and Resorts US$1.4 billion Park Hotels and Resorts and other investors March Shareholdings at Hilton Grand US$1.14 billion Assorted investors Vacation March Hainan Gaohe 1.93 billion yuan Sunac China Property Development and Hainan Haidao (US$305 million) Construction Logistics June Shares in Hainan Airlines US$1.1 billion Consortium led by Temasek July Hotel company US$2 billion Radisson Holdings August 30 per cent stake in air leasing group Avolon US$2.2

***ONE TIME USE ONLY, PLEASE CLEAR THE COPYRIGHTS BEFORE RE-USE - OTUO*** China's state-run Citic Group, one of the world's top owners of foreign assets, is in talks to buy a 60 per cent controlling stake in Jing King Tech Group from RRJ Capital, according to people familiar with the matter. Also in the race are the Government of Singapore Investment Corporation (GIC) and TPG Capital, a US$75 billion US private equity firm based in Fort Worth, Texas, the people said.

Interview with former chief secretary Henry Tang Ying-yen and President of Federation HK Jiangsu Community Organisations, at the Organisations’ headquarters in Wan Chai. 29OCT18 SCMP / Nora Tam

Cathay Pacific swings axe in response to sharp drop in passenger numbers, with flights to Dublin, New York and Paris all hit, and a freeze on spending

As part of its cuts, Cathay Pacific has implemented a spending and hiring freeze. Photo: Felix Wong

Hong Kong International Airport posts biggest monthly drop in travellers since 2009, with 851,000 fewer passengers in August amid anti-government protest crisis

Protesters stage a sit-in at Hong Kong International Airport on August 9. Photo: Edmond So

***PAY PER USE. Please re-download from vendor website.*** shutterstock id: 187642739 HEATHROW, LONDON, UK - April 10: United Airlines Boeing 777 (N774UA) taking off on April 10, 2014 at London Heathrow Airport, London, UK. - Image shutterstock

News

Hong Kong

Politics

Transport


Nearly one in 10 tickets on stricken airline no longer available under major flight cancellation programme
Carrier’s financial woes compounded by weeks of demonstrations suffocating passenger demand



Nearly one in 10 tickets on stricken airline no longer available under major flight cancellation programme.


Hong Kong extradition bill

Hong Kong Airlines

Hong Kong aviation

Hong Kong International Airport