Hong Kong Airlines risks losing licence
Hong Kong Airlines Ltd must improve its financial situation by the end of this week or risk losing its license, said aviation regulators.
The city’s third-biggest carrier must get an injection of cash and keep it at an appropriate level, said the Air Transport Licensing Authority (ATLA) in a statement.
Failure to do so risks further action, including the loss or suspension of its licence, said ATLA. The regulator will announce its decision by Dec 7.
“ATLA found the situation extremely worrying,” it said.
The Transport and Housing Bureau also expressed “grave dissatisfaction and deep concern” that Hong Kong Airlines’ financial position hadn’t significantly improved.
Meanwhile, the Civil Aviation Department asked the company to confirm it was able to continue operating and still comply with regulations.
The outcome could determine if its air operating certificate is suspended or revoked, said the department in a statement.
The carrier’s finances have been under scrutiny all year, but business worsened as months of pro-democracy protests dented tourism as well as the local economy.
Hong Kong Airlines announced changes to its route network on Friday, including the discontinuation of direct flights to Vancouver, Ho Chi Minh City and Tianjin.
“Hong Kong Airlines will continue to monitor the situation closely and adjust its business plan accordingly to ensure it remains commercially viable and sustains its long-term growth,” it said.