Hong Kong Airlines (HX, Hong Kong International) has offered all its pilots secondments or permanent transfers to fellow HNA Group units, the South China Morning Post has reported. Meanwhile, the fight for control of the airline continues with a mysterious company claiming a 34% stake.

The embattled carrier has offered its pilots to move to sister carriers Tianjin Airlines (GS, Tianjin), Hainan Airlines (HU, Haikou), and Hong Kong Air Cargo (RH, Hong Kong International), as well as to HK Express (UO, Hong Kong International), which is in the process of being acquired by Cathay Pacific (CX, Hong Kong International). Separately, Emirates (EK, Dubai International) has also been recruiting pilots from Hong Kong Airlines. The carrier currently faces overstaffing after it had failed to take deliveries of four aircraft recently due to cash flow issues.

So far, over 50 pilots have left for other airlines.

Meanwhile, the carrier's shareholders intensified their already heated dispute over control. On April 23, chairman Hou Wei and three other incumbent board members have been served injunctions barring them from making extraordinary decisions or otherwise interfering in the business unless approved by Zhong Guosong who initiated a boardroom coup last week and also claims to be the chairman.

"The orders are temporary, pending further confirmation by the court and are subject to change. In any event, they do not affect the day-to-day operations of the airline. We continue to operate as normal and there are no changes to our management," Hong Kong Airlines said in a statement.

However, just a day after new evidence emerged which cast further doubt over whether Zhong's claims are legitimate. Documents surfaced which show that Frontier Investment Partner (FIP), a company used by Zhong to back his chairmanship claim, sold its entire 34% stake in Hong Kong Airlines to little known Hong Kong-based firm Grand City Investment Capital on April 11, 2019, for HKD546.6 million Hong Kong dollars (USD69.7 million).

As such, GCIC bought FIP's shares before the latter company was used by Zhong in the coup attempt. Zhong himself controls around 27% of Hong Kong Airlines' shares and would lack the majority without FIP's help. GCIC subsequently strongly opposed Zhong's actions in a statement.

"Their [Zhong and associates] claim is without merit and their conduct, including the use of defamatory and inaccurate public statements about the airline’s affairs, contradicts their stated intention to act in the best interests of the airline. On the contrary, their behaviour appears to have the aim of disrupting the airline. We intend to take appropriate legal action to vigorously protect our position in response," the company said.

In response, Zhong asked the High Court to issue a second injunction which seeks to bar GCIC from trading in Hong Kong Airlines' shares and FIP from using the proceeds from the sale.

It is unclear who owns GCIC. Zhong also seeks to disclose GCIC's financial and personal background through an injunction.