After Hong Kong Airlines received a cash injection things seemed to be looking up after a difficult period. However, that was short-lived as the airport authority has impounded seven of their jets over unpaid parking fees.
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Airport Authority Impounds Hong Kong Airlines Jets Over Unpaid Parking Fees
Hong Kong Airlines is backed by the Chinese conglomerate HNA Group, and they are struggling financially. Hong Kong Airlines has been on the edge of going out of business for a while now, the airline has been unable to pay staff and they had to shut off inflight entertainment. The carrier also had to cut a lot of routes which affected their income severely. The airline was given a critical deadline by the Air Transport Licensing Authority of Hong Kong this month. Hong Kong Airlines had days to find new investors at that point. The carriers parent company HNA Group at the last minute gave them a cash injection, allowing them to pay staff and continue operations.
Now, the Airport Authority of Hong Kong has impounded seven Hong Kong Airlines planes at the airport because of unpaid parking fees.
“Due to network consolidation, some of our aircraft have not been scheduled for operation and are currently suspended from service under the Airport Authority’s arrangement. Our current operation remains normal,” a spokeswoman for Hong Kong airlines said
The aircraft, which have been stored, have not flown for three to 11 months. Two planes affected were Airbus A350s that were leased from ALAFCO, a firm from Kuwait, that had previously sued Hong Kong Airlines over unpaid rent.
Hong Kong Airlines Cut all US Flights
The airline recently launched routes to the US, so they were quite short-lived. Hong Kong Airlines launched flights to LA in December 2017 and San Francisco in 2018. The Hong Kong to San Francisco route was cut about a month ago, after little over a year of existence. They announced that they will be cutting the Hong Kong to LA route. The route is being cut as of February 8, 2020. With the closure of the Los Angeles flights, the airline’s last long-haul destination is Vancouver.
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About the author: Mila Kostic is a native of Belgrade, Serbia. After majoring in sociology at the Belgrade University she has been working as tutor and coach. Prior to taking on her role at Mighty Travels, she wrote for a video games, fitness, and health lifestyle website. After starting her work with the Mighty Travels team she discovered her passion for travel and travel writing. Now, she is focused on bringing you the newest travel news. In her portfolio here at Mighty Travels, you can find articles on Airline news, hottest credit card deals, tips and tricks on earning miles and much more. You can reach her at [email protected]
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