Originally Posted by
johnpilot
HKA does not rely on pax from HK for its business. Most pax come from Chinese Travel agencies. If you do a search online, you will find that the Chinese banks just pumped 15 billion US$ and just paid off all the Hainan debt to Airbus and Boeing.
So HKA is not going anywhere soon. Enough money for salaries, and fuel, and everything else as well. They also just paid their bill to CAE in relation to their simulators being delivered, so for a company about to go bust, you don't prioritise the payment of simulators and buildings.
HKA had to open their books to ATLA and show that they are sustainable and profitable. The news on that front is that they have made an operating profit for the last three years and have the cash flow to sustain the operations for 6 months as required.
This is a fact rather than a rumour, as it's a regulatory requirement.
Their problem has been the expansion costs, and investment in buildings, simulators etc. This was taken care of by Hainan, and now it will be taken care of by the Chinese banks. Rumours are that after the Chinese New Year they will announce the sale to a Chinese company. I also have it on good authority that to prove that they are financially sound they are about to announce a Bonus to employees to boost morale. They did make a profit last year, and they are self sustainable operationally. They just over extended themselves with investments and asset purchases.
Anyway what do I know. Perhaps the banks just pumped billions in it on Friday just for the heck of it.
Yet CNY bookings have nose dived and those of CX increased 30% since last Friday. The markets don't give a rats arse how much the banks pour into HNA to try and save it. Once the word is out and the creditors smell blood ( or in this case 50 cents on their dollar investment ) the plug will be pulled. The banks can take their money out just as quickly as they put it in. The other big Chineese carriers will not standby and see the young upstart receive effectively government backing thru the back door of local banks. 20th January 2019 is D Day form HKA.