Troubled Hong Kong Airlines gets lifeline again from authorities for more time to present fifth finance plan, as it vows to keep flights going over Easter
- Licensing authority demands ‘further clarifications’ and ‘concrete plan’ after fourth meeting
- With reported losses last year of HK$3 billion, fate of company has been laid bare
The government has thrown Hong Kong Airlines another lifeline with more time to come up with a coherent restructuring plan, as the indebted carrier pledged to keep flights running during the busy Easter period amid mounting concerns over its finances.
Hong Kong’s third largest airline made the reassurance, despite repeatedly failing to pay banks, aircraft-leasing companies and suppliers on time, while authorities questioned its turnaround plan drawn for the fourth time since December.
With reported losses last year of HK$3 billion (US$382 million) and company bosses appealing to shareholders to inject HK$2 billion just to keep its flying permit and the business afloat, the fate of the airline has been laid bare.
In 2008 the government moved to stop fledgling low-cost long-haul carrier Oasis Hong Kong from flying after it racked up HK$1 billion in debts.
The Air Transport Licensing Authority (ATLA) – an arms-length government agency that has the power to shut down carriers deemed mismanaged – issued a late night statement on Monday asking Hong Kong Airlines to provide yet more “clarifications” on plans to improve finances.