Hong Kong Airlines CEO promises to do everything to avoid laying off staff, with airline on the brink
- Carrier has still not revealed financial plans following threat by authorities to revoke licence
- Staff report ‘devastating’ impact with just days left to save the airline, passengers face being left in lurch
The chief executive of struggling Hong Kong Airlines vowed on Tuesday to do everything to avoid laying off staff, a day after it was announced its main shareholder was awarded a HK$4.4 billion loan.
But the carrier had still not informed Hong Kong’s authorities of its financial plans, the Air Transport Licensing Authority (ATLA) said on Tuesday.
The body had earlier delivered an ultimatum to the airline that a failure to find new cash or investors before Saturday could lead to the suspension, or even termination, of its licence.
Meanwhile, travellers were unlikely to receive insurance payouts if the city’s third largest airline went bust, the Post has found, with the city’s consumer watchdog urging the company to keep passengers informed and maintain transparency during the ongoing crisis.
The airline’s latest saga surfaced on Monday after ATLA delivered its starkest warning by declaring the carrier’s financial position had “deteriorated rapidly”.
The decline prevented the airline from meeting the minimum requirements under its permit, the authority found, putting 3,500 jobs at risk and leaving the fate of tens of thousands of passengers in limbo.