‘Financial irregularities’ cited as reason for apparent boardroom coup at Hong Kong Airlines
- Zhong Guosong and Hou Wei issue separate statements just a day apart claiming to be at the helm of struggling carrier
- Apparent takeover at city’s third largest airline placed Zhong in the top job as of Tuesday, according to his team
Hong Kong Airlines was in turmoil on Wednesday after an apparent boardroom coup in which a former director claimed he had taken control due to financial irregularities on the part of shareholder HNA Group.
Zhong Guosong proclaimed himself chairman of Hong Kong’s third largest carrier just a day before supposed chief Hou Wei assured staff in a memo that he was still at the helm of the financially fragile company.
Hou on Wednesday said a “shareholder dispute” was in process but it was nevertheless business as usual. However, two statements on behalf of Zhong from global business advisory firm FTI Consulting rubbished that claim.
It was not clear who was officially in charge but neither side appeared to be backing down, as the carrier fights for its future amid financial instability.
FTI late on Wednesday cited “new majority shareholders” Hong Kong Airlines Consultation Service (HKACS) and Frontier Investment Partners (FIP) as saying Zhong had “immediately assumed legal control”. The faction is one of two linked to indebted Chinese conglomerate HNA who are apparently fighting to take the reins.
