Hong Kong Aviation Ground Service Ltd, a wholly owned subsidiary of Hong Kong Airlines, confirmed it will cease its business operation in July.
The compensation package offered to 240 affected employees will be in full compliance with the employee’s conditions of service and local labour laws, the company added.
It also pointed out that Hong Kong Airlines is now in the process of appointing a new service provider to support the handling of its limited passenger flights. The company said airport services will remain uninterrupted during the transition period.
Established in June 2011, HAGSL has been providing ground services for Hong Kong Airlines at Hong Kong International Airport.
The company already laid off 30 staff members in last December, as its parent company struggled financially.
The latest email stated the difficulty of continuing operations as air travel has greatly reduced for the past two years, and as international travel is unlikely to return to normal before 2024.
Only a small fraction of staff will be able to switch to Hong Kong Airlines or SATS HK Limited, another airport ground service company jointly owned by Hong Kong Airlines and the Singapore company SATS Limited.