HONG KONG: A Hong Kong air transport regulator stated on Saturday it determined towards suspending the licence of Hong Kong Airways, the town’s second largest provider, after it scrambled for funding.
The airline, part-owned by cash-strapped Chinese language conglomerate HNA Group, stated on Wednesday it had a money injection plan enabling it to pay excellent salaries to employees the subsequent day.
Air Transport Licensing Authority (ATLA) stated in a press release on Saturday the money injection plans had been passable, including that it could proceed to intently monitor the agency’s operations.
The regulator had warned the provider it wanted to shore up its monetary place by Dec. 7 or threat suspension or lack of its licence.
“ATLA has given cautious consideration to components together with public pursuits and the coverage course of sustaining Hong Kong as a global aviation hub,” an ATLA spokesperson stated.
“Hong Kong Airways is right here to remain,” the corporate stated in a press release after the ATLA determination.
“We will even actively talk with our service suppliers to resolve excellent monetary points and step by step deliver our service again to regular.”
Hong Kong Airways and bigger rival Cathay Pacific Airways Ltd are battling a steep decline in demand on account of months of anti-government protests within the monetary hub.
Hong Kong Airways was in a precarious monetary place even earlier than the unrest. The unlisted firm in April advised shareholders it had misplaced HK$three billion ($383.39 million) in 2018, based on individuals with data of the matter.
It has introduced a number of capability cuts, together with the suspension of flights to Vancouver, Ho Chi Minh Metropolis and Tianjin.