The Hong Kong Air Transport Licensing Authority (ATLA) has announced that following an earlier inquest into the state of the airline's finances, it has now directed Hong Kong Airlines (HX, Hong Kong International) to submit a financial recovery plan.
In late February, the regulator said it was "gravely concerned" about the airline's state of affairs given the slew of lawsuits filed against it by creditors citing unsettled debts. Among them were a Macau-based financing house, Luso International Banking (LIB), owed USD20 million and lessors AerCap and Wilmington Trust SP Services (Dublin) Limited owed approximately USD19 million in total.
"ATLA had considered the information previously submitted by HKA[Hong Kong Airlines], and decided after the meeting today (March 15) to request HKA to submit a concrete plan with a view to improving its financial situation shortly," an ATLA statement issued on Friday, March 15, said. "ATLA will review the financial improvement plan to be submitted by HKA in accordance with the Regulations and take appropriate actions under the Regulations when necessary. In addition, HKA has provided an explanation to ATLA regarding the claims against HKA for recovery of arrears filed in the court on February 22, 2019. ATLA has requested HKA to continue to report the progress of the claims in a timely manner and will take appropriate actions under the Regulations when necessary."
A subsidiary of the ailing HNA Group, Hong Kong Airlines has refused to comment on the state of its accounts despite intense local media speculation.
According to Orient Aviation, given queries about its standing, Hong Kong Airlines has now been barred from adding new routes to its network. Sources familiar with developments told the publication last week that an application to open service to Nagoya Chubu, Japan this June has been rejected.
