17.01.2019 - 18:54 UTC
Hong Kong's Air Transport Licensing Authority (ATLA) has asked
Hong Kong Airlines (HX,
Hong Kong Int'l) for further clarification of its financial situation after a review of the information already provided by the carrier, the South China Morning Post (SCMP) has reported.
"ATLA requested that Hong Kong Airlines provide further clarifications and provide supplementary information," the regulator said.
The request came just a few hours after the regulator met with the airline, signalling that the information provided thus far did not address all ongoing concerns about the carrier's financial health.
The ATLA previously asked the
HNA Group member for a detailed business plan after reports surfaced about its HKD4.5 billion Hong Kong dollar (USD575 million) bond repayment due on January 20. The airline provided such a business plan on January 14.
Subsequently, Hong Kong Airlines was reported as courting numerous investors and financial institutions, including
Cathay Pacific (CX,
Hong Kong Int'l), for a potential cash injection, debt restructuring, or commercial partnership. The airline itself consistently denies it is facing any financial troubles and said that there was no threat of liquidation, insolvency, or significant disruption in its operations.