Hong Kong Airlines fails to pay November salaries on time to almost half of its employees, cites protests and weak travel demand as reasons for poor business
- The airline says its cabin crew and overseas staff will be paid on time, but all other staff will get their salaries on December 6
- The decision affects 1,600 employees, nearly 45 per cent of its total staff strength
The troubled Hong Kong Airlines (HKA) on Thursday said it could not afford to pay almost half of its staff their salaries for November on time, delaying the payments until the first week of December.
In an internal note, the HNA-backed carrier’s human resources department blamed the protests, now in their sixth month, for its inability to pay the employees on time.
“Hong Kong Airlines’ business has been severely affected by the social unrest and a sustained weak travel demand,” the memo said. “With November being a low travel season as well, our revenue has reduced significantly, affecting our payroll for the month.”
The airline said its cabin crew and overseas staff would be paid on time, but all other staff would get paid on December 6. The decision will affect 1,600 staff, close to 45 per cent of the airline’s 3,560 employees.
The financial position of Hong Kong’s third largest airline has been so weak that the government had to intervene in its business earlier this month, demanding urgent improvements and placing it under more public scrutiny.