Hong Kong Airlines offers all its pilots transfers to other carriers, with Tianjin Airlines proving most popular and Emirates set to hire fifth of applicants

Hong Kong Airlines (HKA) has offered all of its pilots transfers to other carriers as the firm tries to downsize amid a financial crisis that threatens to put it out of business.

The struggling carrier, Hong Kong’s third largest, has offered secondments or permanent employment with Tianjin Airlines, HK Express, Hainan Airlines and Hong Kong Air Cargo, all subsidiaries or ultimately controlled by China’s HNA Group, according to internal memos.

So far 57 pilots have taken up the offer, with Emirates stepping in to hire about a fifth to fly its Airbus A380 aircraft, the documents revealed.

HKA, also backed by HNA, has been experiencing tremendous upheaval in recent months stemming from concerns about its finances. Numerous key figures have departed and doubts have been raised about the company’s ability to repay creditors and aircraft lessors.

A surplus of pilots arose after the airline failed to take delivery of at least four new aircraft due to cash flow problems. An airline source said the company was “in excess” of 100 pilots, but Emirates earlier cited HKA as saying the surplus was 10 per cent. As of April 10, the total number of pilots employed by HKA was 626, which would make the surplus 62 if the 10 per cent figure were accurate.

Hong Kong Airlines directors slapped with injunction as confusion reigns over the airline’s ownership and government deadline nears

The memos said 57 pilots had already applied for transfers to various airlines. Some 13 opted for Emirates and 10 for HK Express, but Tianjin Airlines proved most popular with 21 applicants.

Emirates earlier reported it had a shortfall of up to 150 pilots last year. The Middle Eastern carrier has also picked up pilots from regional rival Etihad as well as struggling discount carrier Norwegian.

HKA first approached Emirates in February to broker a solution to the pilot shortfall. About a month later, on March 15, the Hong Kong airline solicited offers from a host of carriers for its aircrew. The offers included a permanent move for all pilots to HK Express or Emirates, a secondment to Tianjin Airlines for A330 captains, and a yearly renewable contract or permanent employment with Hong Kong Air Cargo for A330 first officers. At the start of April, HKA Airbus A330 and A350 captains were also offered yearly renewable agreements with Hainan Airlines.

HNA Group tells warring Hong Kong Airlines parties to behave as battle for control of airline continues

HKA last week invited its pilots to recruitment sessions for sister carrier HK Express, a budget airline in the process of being sold to Cathay Pacific Airways. Interested staff were told they would be given a permanent contract with the company if they resigned from HKA.

For the first time, HKA has confirmed it will delay its acceptance of new aircraft. In a response to the Post, its spokeswoman acknowledged “a small pilot surplus”, saying it was a result of the delayed delivery of Airbus A350 and A330 planes.

“Pilots are important assets and we have been working out deals with other airlines to benefit our crew. Our aim is to provide them with opportunities to work in different operating environments while maintaining their seniority with Hong Kong Airlines,” the spokeswoman said.

She added the arrangement would be for one year, which left the status unclear of pilots moving full time to the other carriers.

HK Express did not say how many pilots it planned to absorb but a spokeswoman said: “Those candidates who are enthusiastic about the aviation industry and fulfil our requirements are always welcome.”

Emirates could not be reached for comment, nor could Hong Kong Air Cargo, Tianjin Airlines and Hainan Airlines.

HKA lost HK$3 billion (US$380 million) last year and needs HK$2 billion to comply with government demands to keep its licence.

The fellow HNA-backed airline has cut 100 staff and currently employs 3,798 people. It previously reduced the number of passenger planes it operated by about a quarter, from 38 to 28, but the figure has since reached 35.

Its financial problems have caught the attention of the government, which has tightened scrutiny of the company by demanding numerous financial plans to ensure it can return to profitability.

Since last week various HNA shareholders have been fighting to claim ownership of the struggling firm, adding renewed uncertainty to its ability to continue operating.

Airlines worldwide are grappling with a global pilot shortage. As the industry expands, demand for aircrew is increasing, and pilots are being lured to rivals with bigger pay packets. Dominant HKA hometown rival Cathay Pacific has stepped up its recruitment programme.