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Embattled Hong Kong Airlines On Financial Hiccup

by reputationpoll
August 6, 2019
in Aviation
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Embattled Hong Kong Airlines On Financial Hiccup
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Hong Kong’s Air Licensing Transport Authority expresses “grave concerns” about the airline’s finances.

The troubled carrier may scale back its number of planes from 38 to 28, axe planned for its Airbus A330-200 models

Hong Kong Airlines has been unable to take delivery of four new planes and is being sued by two aircraft-leasing companies

Hong Kong Airlines could slash the number of planes it flies by more than a quarter in a drastic bid to balance its books as it is badgered once again by the government over its finances and clouded by lawsuits over unpaid dues.

The cash-strapped company is studying plans to transfer some aircraft to its main shareholder HNA, return planes to aircraft-leasing companies or scrap planes outright, the Post understands.

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It is close to deciding to chop the number of passenger jets from 38 to 28 as part of a massive restructuring effort, focused on removing the smaller variant of its largest jets, the Airbus A330-200.

Hong Kong Airlines owns 22 planes outright and has rented 16 planes from a variety of companies, including a total of four Airbus A350-900 planes from AerCap, according to FlightGlobal.

Hong Kong Airlines aims to improve our structure to boost revenue, manage costs and achieve higher productivity,” a company spokeswoman added. She denied any changes would result in job losses.

The airline employs nearly 3,900 people, including 1,900 cabin crew and 631 pilots.

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