Hong Kong’s Transport and Housing Board (THB) is now requiring Hong Kong Airlines to raise money by 7th December. Failure to do so may result in suspension or revocation of their operating license, putting 3500 jobs at risk.
On 27th November, THB met with Hong Kong Airlines and expressed “grave dissatisfaction and deep concern” over the companies financial position.
Before the anti-government protest begins in Hong Kong, Hong Kong Airlines was already in bad shape. In April 2018, the airline told its shareholders that it needed HK $2bn, or they would lose their license. During FY 2018, the airline has made a loss of HK $3bn.
Hong Kong Airlines is currently not a listed company. Their controlling shareholder, HNA Group, a Chinese conglomerate, is currently lacking cash as well.
Series of Events Since Late Last Week
Last Thursday: Hong Kong Airlines could not pay nearly half of their staff salaries for November on time, pushing the payment to the first week of December.
Last Friday: The airline announced further capacity cut by suspending flights to Vancouver, Ho Chi Minh City and Tianjin
Last Saturday: The airline announced that the in-flight entertainment system would be out of service until further notice.
Based on the intensity of the bad news, Hong Kong Airlines seems to be going through the heaviest headwind now.