HNA Group has denied charges of embezzlement and financial misappropriation at Hong Kong Airlines (HX, Hong Kong International) and appealed to two rival factions of shareholders to make peace, Reuters has reported.
"Our highest priority is to see the governance issues at Hong Kong Airlines resolved, and support continued normal operations at the airline for the benefit of all stakeholders, and we are working diligently to that end," an HNA Group spokesperson told the South China Morning Post.
The debt-ridden Chinese conglomerate issued the statement in response to earlier claims made by Zhong Guosong and Frontier Investment Partner, who jointly control a 61% stake in Hong Kong Airlines. On April 16, Zhong declared himself the new chairman of the company and levied accusations at HNA Group, which controls around 29% of shares.
Zhong also alleged that HNA Group representatives stormed Hong Kong Airlines' offices and removed documents. The Chinese holding denied these charges.
On April 22, the South China Morning Post further reported that Zhong obtained an injunction against HNA Group from interfering or sabotaging running of the business at Hong Kong Airlines. Sources were not clear whether the injunction covered all HNA Group employees or just certain individuals.
The conflict between Zhong and HNA Group dates back at least to the end of 2018 when HNA sued Zhong-owned Hong Kong Airlines Consultation Service (HKCAS) demanding repayment of HKD854 million Hong Kong dollars (USD109 million) in debt. Zhong later questioned the HK Airlines accounts for 2018 and opposed the sale of LCC subsidiary HK Express (UO, Hong Kong International) to Cathay Pacific.
The carrier still lists Hou Wei, who joined Hong Kong Airlines from another HNA Group unit, Hainan Airlines (HU, Haikou), as its chairman.
On April 17, the Hong Kong Transport and Housing Bureau, the Civil Aviation Department, and the Air Transport Licensing Authority issued a joint statement asking the airline to resolve their internal disputes in a way which will not threaten aviation safety. The government gave the company until April 24 to clarify who is in charge.
