Hong Kong Airlines: government allows stricken carrier to continue flying after cash found to plug finances
- No further action to be taken by licensing authority against carrier’s woeful finances, ‘for the time being’
- City’s third-largest airline retains licence to operate after given five days to secure new funds
The government has decided against punishing Hong Kong Airlines (HKA) further over its financial black hole after management secured funding that stopped the beleaguered carrier from losing its licence to operate.
With more than 3,500 jobs on the line and hundreds of thousands of bookings at risk ahead of Christmas, staff and customers could breathe a sigh of relief at Saturday’s announcement of the reprieve.
The Air Transport Licensing Authority (ATLA) said it was satisfied the carrier had met two new licence conditions, which forced it to find significant new funding. However, the authority said it remained concerned about the carrier’s weak financial situation.
The first condition imposed on the airline was a requirement to raise substantial capital by its Saturday deadline. The second was to maintain and improve its cash balances as instructed by the ATLA.
“ATLA has decided not to take further action against HKA for the time being, pending the airline’s submission of further details regarding condition one,” the authority said in a statement on Saturday.