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Hong Kong Airlines (HKA)

Fragrant Harbour A forum for the large number of pilots (expats and locals) based with the various airlines in Hong Kong. Air Traffic Controllers are also warmly welcomed into the forum.

Hong Kong Airlines (HKA)

Old 11th Jan 2019, 22:14
  #321 (permalink)  
 
Join Date: Nov 2006
Location: Not over the Rockies anymore.
Posts: 242
Well, if they do go bust they’ll have the perfect excuse: “all that negative press and media sabotage”!!

For everyone’s sake I hope they pull through this with just a bruised ego..
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Old 12th Jan 2019, 00:28
  #322 (permalink)  
 
Join Date: Sep 2017
Location: Hong Kong
Posts: 159
Originally Posted by johnpilot View Post
Okay United, if it makes you feel better till the 20th, it is going bust on the 20th. Let's see what you have to say on the 21st then, when it is still in business. I don't have a vested interest in the outcome as I am not working for them. A very good friend of mine, a man of immense integrity who is in management though, told me that OPS are normal and that they have paid off the debt with fresh money.

The money was given to them under direct orders of the Chinese government. The airline is a symbol of Chinese prosperity in the old colony. They will integrate it, into another mainland airline, thus it is one of theirs. It cannot fail, while Swire is doing well. Loss of face and all.

As for the objections of the other carriers, all Chinese airlines are effectively state property, as are banks, thus nothing happens unless they have clear orders from the Boss and the party. Maybe you have better information than my friend. He was also baffled by the bail out, as he did not think that they would have survived in the western world.

I would be interested to know though, how you know that their bookings have nosedived and yours gone up by 30%? How would you know that if you work for Cathay? Do you have a software which tracks, forward bookings for all competitor airlines? If you have access to such a software, could you point me in the right direction as it would be a very nice tool to have at my disposal. Usually such commercially sensitive information is difficult to find, so I am sure if you have access to such software I could make some money with it.

TaTa
I’m always curious when someone pulls “facts” out if their ass wihout a link and then tells you to do a google search. Here’s flightglobal a month ago on HNA and it isn’t pretty

https://www.flightglobal.com/news/ar...to-201-454198/

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Old 13th Jan 2019, 13:25
  #323 (permalink)  
 
Join Date: Sep 2017
Location: Hollywood
Posts: 5
Hey all, I have a friend wanting to apply for Hong Kong Airlines. Should he apply directly the airline or go through Asia Pacific Aviation Services (hiring agency)?
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Old 14th Jan 2019, 05:05
  #324 (permalink)  
 
Join Date: Sep 2017
Location: Hollywood
Posts: 5
Originally Posted by PushRed View Post


May I suggest you read before posting. No hiring here for a while! Everyone in HKA is hired directly with the airline, no middle men brokers.
My friend has read this thread and it says Chinese Banks has just pumped in billions of dollars in to HKA. Furthermore, the HKA website is advertising for pilots. My friend has friends who joined through APAS so there are recruitment agencies who handle the recruitment. Can I get an answer from someone who actually works there and knows what's going on?
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Old 14th Jan 2019, 06:43
  #325 (permalink)  
 
Join Date: Jul 2018
Location: uk
Posts: 505
Originally Posted by Hollywood1 View Post
My friend has read this thread and it says Chinese Banks has just pumped in billions of dollars in to HKA. Furthermore, the HKA website is advertising for pilots. My friend has friends who joined through APAS so there are recruitment agencies who handle the recruitment. Can I get an answer from someone who actually works there and knows what's going on?
Pilot hiring freeze is official and indefinate.
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Old 14th Jan 2019, 11:04
  #326 (permalink)  
 
Join Date: Feb 2006
Location: Bottom of the Harbour
Posts: 254
Chinese investment could/can sort all this mess out with growth returning like before.........hold my beer.
The problem is that the PRC government will only look after interests on the mainland. HKA is a subsidiary like many other businesses within the Hainan group. This airline was created to circumvent state controls on aircraft purchases for Hainan. It served its purpose well, with aircraft being purchased and moved on to Hainan as 'secondhand'.

The PRC clamped down on Hainan for the massive capital outflows they were creating with their acquisitions. HKA is a foreign airline, it is financed through HK which will mean its treated no different to the multitude of foreign investments that Hainan have made.

The only positive this may have is that Temasek may wait till the airline is on its knees and come along with a large stake. However. it will be subject to the requirements of airline ownership which saw the demise of Jetstar HK.

Don't bank on the mainland to bail out a subsidiary, it will only focus on the parent and the consequences of its failure.
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Old 14th Jan 2019, 13:10
  #327 (permalink)  
 
Join Date: Apr 2002
Location: shoe box
Posts: 337
So according to unitedabx the fuel companies were going to stop providing credit last week. How did you guys manage to pay for your fuel then? Mastercard? Visa? EPS?
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Old 15th Jan 2019, 05:28
  #328 (permalink)  
 
Join Date: Jul 2018
Location: uk
Posts: 505
Originally Posted by PushRed View Post
Unitedabx is no better than the fake news media, full of hot air and conjecture. Stick to your CX threads matey, we all got problems. On that note I'm off to buy a first class ticket to Portugal... #timetowin
PushRed I would wait to see if your salary gets paid this month before you go off and buy that ticket. Or perhaps you could reserve your seat at the HK Stock Exchange on 20th at 8am when your CEO has reserved a 15min time slot to make "an announcement". And while you are at it explain why the HKG Govt. has leased 4 Air Atlanta 747's to cover CNY as a contigency. Maybe you can read the Financial Times which has an article about bond payment default reprecussions by HKA. The Chinese banks might be flooding the company with money but the bonds are all in USD and held overseas and MUST be paid on or before 20th.

Ignorance is bliss but no excuse.
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Old 15th Jan 2019, 22:59
  #329 (permalink)  
 
Join Date: May 2006
Location: FL510
Posts: 878
https://www.scmp.com/news/hong-kong/...urther-clarify
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Old 16th Jan 2019, 01:02
  #330 (permalink)  
 
Join Date: Aug 2007
Location: Far Away
Posts: 54
Too big to fail as such nothing to worry....business as usual..
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Old 16th Jan 2019, 14:30
  #331 (permalink)  
 
Join Date: Feb 2016
Location: FL Whatever
Posts: 85

Last edited by ROW_BOT; 17th Jan 2019 at 02:53.
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Old 18th Jan 2019, 01:49
  #332 (permalink)  
 
Join Date: Feb 2016
Location: FL Whatever
Posts: 85
The FlightGlobal article above states the crunch date is Jan 26th. That’s a Saturday.
I think FG is a pretty good source of aviation news. Never known it to be sensationalist.
Read the two links.
Personally, I’m about 90% sure HKA will survive this and pull something out of the hat. But the rot will still be there. So this isn’t going away just like that.

....and there’s always that 10% chance......
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Old 18th Jan 2019, 06:59
  #333 (permalink)  
hyg
 
Join Date: Oct 2007
Location: hong kong
Posts: 103
Originally Posted by PushRed View Post
Unitedabx you just get better and better. Slight problem with your theory is that the 20th is a Sunday hence the HKEX is closed....but nice try . Care to share a source to your little 747 story or is it a case of 'my mates mate who flew with a guy who knows this guy in CAD says so...its basically confirmed'. Maybe you're getting the information from the same source as the SCMP 'journalist'...more fake news!
also I am not quite sure why a non listed company need to make an announcement at the HKEX
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Old 18th Jan 2019, 13:40
  #334 (permalink)  
 
Join Date: Feb 2016
Location: FL Whatever
Posts: 85
They were recently criticised in the Biz media for keeping the lid too tight on their accounts. Apparently it’s common practice for companies to make statements to the exchanges even if unlisted. Maybe they’ve decided to come clean. Or been forced to by the HTA/CAD?
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Old 18th Jan 2019, 15:27
  #335 (permalink)  
 
Join Date: Apr 2004
Location: blue earth
Posts: 208
Maybe they’ve decided to come clean. Or been forced to by the HTA/CAD?
https://www.ch-aviation.com/portal/n...ancial-details

ATLA asks Hong Kong Airlines for further financial details

[/QUOTE]

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.
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Old 21st Jan 2019, 04:37
  #336 (permalink)  
 
Join Date: Apr 2009
Location: Poland
Age: 62
Posts: 62
At the last meeting of the National Peoples Congress last October Xi Jing Ping categorically stated the Beijing will no longer bail out the debt created by the provinces.
Its all very clear to me, with China in the biggest slow down in 28years and many Chinese Banks having over lent for infrustructure projects that may not return for years, no one wants wants to offend the Premier, cash for HNA will become hard to come by.
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Old 23rd Jan 2019, 00:26
  #337 (permalink)  
 
Join Date: Nov 2006
Location: Not over the Rockies anymore.
Posts: 242
https://www.ch-aviation.com/portal/n...nt-obligations

Hong Kong Airlines meets bond repayment obligations

22.01.2019 - 13:55 UTC

Blue Sky Fliers Co. has announced that Hong Kong Airlines (HX, Hong Kong Int'l) has met its obligations insofar as the payment of its USD550 million worth of bonds is concerned.

The airline had agreed to the commitment in 2016 through the issuance of USD180 million 6.90% Guaranteed Notes due 2019 on January 20, 2016; a further issue of USD120 million 6.90% Guaranteed Notes on March 30, 2016, and a final issue of USD250 million 6.90% Guaranteed Notes on August 4, 2016. All three formed a single series and matured on January 20, 2019.

Despite much speculation regarding the state of the airline's finances, the British Virgin Islands-based holding Blue Sky Fliers Co. said in a stock market filing on Monday, January 21, that Hong Kong Airlines had indeed paid off the bond and all accrued interest.

"The Issuer [Blue Sky Fliers Co.] wishes to announce that on January 18, 2019, The Bank of New York Mellon, the fiscal agent and payment agent for the Guaranteed Notes, has confirmed receipt of a total amount of USD568,975,000 from the Issuer, which represented the amount of Guaranteed Notes redeemed in full at their principal amount on the interest payment date falling on January 22, 2019, in accordance with the terms of the Guaranteed Notes," it said.

"[...] As such, the Issuer, Hong Kong Airlines International Holdings Limited, HKA Group Company Limited, and Hong Kong Airlines have fulfilled their financial obligations under the Guaranteed Notes and they are confident that they will continue to fulfil their financial obligations under other instruments that they may subject to."


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Old 27th Jan 2019, 10:23
  #338 (permalink)  
 
Join Date: Nov 2006
Location: Not over the Rockies anymore.
Posts: 242
Really? No one? No expert commentary on the above link?
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Old 28th Jan 2019, 04:19
  #339 (permalink)  
 
Join Date: Jul 2018
Location: uk
Posts: 505
Originally Posted by act700 View Post
Really? No one? No expert commentary on the above link?
I'll bite.

This is just moving money around by bankers. IF HNA had defaulted then the whole sandcastle falls and the mainland banks have egg all over their faces and a huge debt to repay. By paying the bonds off the collapse is averted but the tide is running up against the sandcastle. It lets the mainland banks get their other money out.
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Old 28th Jan 2019, 10:34
  #340 (permalink)  
 
Join Date: Nov 2006
Location: Not over the Rockies anymore.
Posts: 242
Basically, you’ve summed up the entire airline industry, haha..
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