Hong Kong Airlines Asked To Improve Finances Before Dec 7 Or Risk Suspension

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Air transport regulator said on Dec 2 that Hong Kong Airlines must level up their financial position by the end of this week or face the risk of suspension.

Written By Aanchal Nigam | Mumbai | Updated On:
Hong Kong

Air transport regulator said on December 2 that Hong Kong Airlines must level up their financial position by the end of this week or face the risk of suspension or losing its licence. The Air Transport Licensing Authority announced new conditions to the license of the city's second-largest airline attached in a statement which requires the company to maintain certain cash levels before December 7. Hong Kong Airlines also released a statement saying it is actively communicating with shareholders along with other stakeholders in order to meet the 'new requirements' requested by ATLA. 

Hong Kong Airlines also said in the statement published on their website, “Hong Kong Airlines updates ATLA and the Transport and Housing Bureau (THB) regularly on our operation and financial improvement plan. We have addressed our financial situation by implementing cost-savings measures, while adjusting our operation from time to time to respond to changing market demand”.

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Airlines' financial struggles 

Even though the Hong Kong airlines have not disclosed their financial data and is also not publicly listed but in April, the Airlines reportedly told its shareholders that it needed at least HK$2 billion for fresh funds or it might lose the operating license. The carrier also told them it had lost nearly HK$3 billion in 2018 and infusion was crucial. The Hong Kong Airport authorities also said that it was 'very concerned about the financial situation' of the airline and the potential impact on its passengers. However, the airlines have said that they are committed to fly their passengers to their destinations safely. 

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Reportedly, the airlines were struggling with its finances even before the pro-democracy demonstrations prevailed in the former British colony and led to a plunge in visitors to the Asian financial capital. Therefore, airlines acknowledged that 'weak travel demands' resulting due to social unrest in the city has affected their business and revenue. As a result, the company had to reduce its capacity and flights in the upcoming months. 

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