The Hong Kong Air Transport Licensing Authority (ATLA) has granted HK Express (UO, Hong Kong International) a new Air Services Licence (ASL) valid from November 12 onwards.

The regulator said in a statement that on review of HK Express's remedial action plan, it was satisfied the low-cost carrier would address all shortcomings that it itself had identified as causes for the cancellation of eighteen flights during the "Golden week" period in early October. At the time, the airline said it had been forced to do so after all of its safety instructors left the company. In addition, it also lacked adequate standby staff as required under local regulations.

Among the measures adopted by the airline include a pledge to maintain its business and network capacity at current levels for the next six months. It has also undertaken a review of its internal communications, enterprise risk management, crew trainer resourcing and customer service, and has developed what it says, are "concrete improvement measures to enhance its operations". Senior management has also undergone a shake-up with Li Dianchun replacing Andrew Cowen as CEO among other appointments.

Satisfied with these pledges, as well as the state of HK Express's finances, the ATLA has granted it a five-year ASL. However, the awardance is conditioned on the airline submitting progress reports to the ATLA on the implementation of the action plan along with quarterly financial reports, among other licensing conditions.

"ATLA will continue to monitor compliance of licence holders in accordance with the relevant regulations," it said.