Airlines Hong Kong Airlines to face bankruptcy

Hong Kong Airlines has released, that cost saving measures had to be performed in order to avoid bankruptcy.

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In an official statement made by Hong Kong Airlines, the carrier announced that new requirement had been set out by the Air Transport Licensing Authority (ATLA). The airline underlined, that operations were continuing to run as normal.

The Hong Kong carrier has been struggling with its finances over the past months. In November this year, the carrier reviewed its network strategy and reduced capacity and flights on specific routes. Destinations with weak travel demand like Vancouver, Ho Chi Minh City or Tianjin were deleted or reduced from Hong Kong Airlines´ network.

In a statement, the airline said: "As weak travel demand resulting from the social unrest in Hong Kong has continued to affect our business and revenue, Hong Kong Airlines has reduced its capacity and flights in the coming months as well as further consolidated its network under the challenging business environment. Hong Kong Airlines is actively communicating with our shareholders and other stakeholders to meet the new requirements from ATLA as requested. We will remain professional and deliver our best customer service to all passengers."

The carrier had one week to save its operation license. A senior management member meeting has been set up at the end of November to speak about the current situation. Now, at the beginning of December, the ATLA has issued that it would not take further action against the carrier for the time being.

Regarding its plans for long-term growth, the airline added: "Hong Kong Airlines has a cash injection plan following urgent consultations with our stakeholders, including shareholders and management, who attach great importance to the airline’s long-term growth. Funding for operation will be injected into Hong Kong Airlines by phases. Over the past year, Hong Kong Airlines has rolled out a consolidation programme to cut costs, optimize its network and elevate the customer experience. Moving forward, we will continue to drive consolidation and strengthen our internal structure to operate more efficiently and improve our revenue."

The airline added, that every person working for the company will continue to maintain the highest standards of professionalism to serve the customers in the best possible way. The carrier is committed to serving Hong Kon safe and smooth.

Hong Kong Airlines is also in talks with their service providers to resolve outstanding financial issues and to gradually bring back the service back to normal. The carrier seeks to sustain a long-term growth.

Hong Kong Airlines is based at the main Hong Kong Chek Lap Kok airport and was founded in September 2006. The current fleet consists of 12 Airbus A320s, 26 A330s and five A350 XWBs. The average age of the fleet is very low its just 7,4 years. In the near future, Hong Kong Airlines will receive new Airbus A330 and A350 aircraft to furthermore modernize the fleet and optimize operations.

Source © hongkongairlines.com

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