Hong Kong Airlines in Jeopardy of Being Dissolved

Financially beleaguered Hong Kong Airlines is not only unable to meet November payroll for almost half of its employees, but it was given five days to find more investors or risk losing its permit to fly.

The Air Transport Licensing Authority of Hong Kong (ATLA) has given Hong Kong Airlines until Saturday, Dec. 7, to produce new investors or more cash. If not, its license to fly will likely be suspended or revoked.

“After careful consideration of the financial position of HKA at present, ATLA must take immediate and resolute action to prevent further deterioration of HKA’s situation in order to protect public interests,” ATLA said in a statement.

Hong Kong Airlines quickly responded with its own statement, saying it “remains committed to flying our passengers to their destinations safely. … We have addressed our financial situation by implementing cost-savings measures, while adjusting our operation from time to time to respond to changing market demand.”

So far, HKA has turned off inflight entertainment, ended long-haul flights, and only has enough money to pay about 45% of its employees for November.

The carrier admitted in an internal note dated November 28 that it had been forced to delay payment of November salaries to almost half of its employees.

Cabin crew and overseas employees are expected to be paid on time.