The Air Transport Licensing Authority (ATLA) may suspend Hong Kong Airlines’ licence by December 7.
The new licence conditions stipulate that the airline must, by a set deadline, ensure that a cash injection at a level determined by ATLA is implemented, due to ongoing financial problems at Hong Kong Airlines.
ATLA says it has repeatedly asked HKA to submit financial improvement plans but this has not happened. The situation has been described as “extremely worrying”.
The statement reported that “HKA's financial position has deteriorated rapidly to such an extent that it has severely impacted on HKA's capability to meet its obligations as an employer to pay salaries and the probability of providing a satisfactory service under its licence in respect of continuity and regularity of operation”.
If HKA fails to improve its financial situation by the deadline, ATLA will take further action in the form of revocation or suspension of licence.
ATLA will announce its decision by December 7.
