Hong Kong Airlines will retain its licence after demonstrating to the region’s governing aviation body that it can sustain enough of a cash flow to fund its operations.
Hong Kong’s Air Transport Licensing Authority (ATLA) reported on Dec. 12 – HKA’s deadline to comply with the organization’s conditions – that it would take no further action against Hong Kong Airlines for the time being, stating that the carrier “has raised its cash and cash equivalent to the level stipulated by ATLA.”
“ATLA has given careful consideration to factors including public interests and the policy direction of maintaining Hong Kong as an international aviation hub,” the organization said in a statement.
Hong Kong Airlines responded to the news, stating that it “will comply with ATLA's requirements and all relevant regulatory requirements as always,” adding that injections of cash into the operation will be phased in, the result of a consolidation program “to cut costs, optimize its network and elevate the customer experience.”
Ahead of the deadline, HKA announced that such cost-cutting measures included cutting routes, including Ho Chi Minh City, Vietnam; Tianjin, China; and Vancouver, the carrier’s first foray into the North American market. The last Vancouver flight will take place Feb. 10.
Don't miss a single travel story: subscribe to PAX today!