Hong Kong Airlines (HKA) has managed to avoid shuttering in the wake of its ongoing financial difficulties.
Last week, the Air Transport Licensing Authority of Hong Kong (ATLA), the organization responsible for managing airline standards, gave the company a Dec. 7 deadline to acquire additional funds or investors, or risk losing its flight permit.
ATLA set two conditions for the struggling airline, before it would be permitted to continue operations: 1) HKA must ensure cash injection at a level determined by ATLA by Saturday, Dec. 7; and 2) raise and maintain its cash and cash equivalent level.
After consulting with their stakeholder last week, the airline reports that it has created a cash injection plan to prevent the possible shut down. HKA submitted its financial report during a meeting with ATLA on Dec. 6, and upon review, the organization decided the airline was fit to resume operations.
“According to the information provided by HKA, the airline has raised its cash and cash equivalent to the level stipulated by ATLA and pledged that the level would be maintained,” according to a statement from ATLA.
“ATLA has decided not to take further actions against HKA for the time being, pending the airline's submission of further details ... In reaching the above decision, ATLA has given careful consideration to factors, including public interests and the policy direction of maintaining Hong Kong as an international aviation hub."
HKA has been facing financial hardships following an attempted expansion project last year, which drained the company financially. This, coupled with the ongoing civil unrest that has plagued the region nonstop for months, has significantly disrupted business for the airline.
“We will comply with ATLA's requirements and all relevant regulatory requirements as always,” said Hong Kong Airlines in a statement. “Our operation has been running normally and we will endeavor to serve all our passengers over the upcoming holiday season and beyond.”