Hong Kong Airlines (HKA)
Join Date: Nov 2006
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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..
For everyone’s sake I hope they pull through this with just a bruised ego..
Join Date: Sep 2017
Location: Hong Kong
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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
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
https://www.flightglobal.com/news/ar...to-201-454198/
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?
Join Date: Jul 2018
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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?
Chinese investment could/can sort all this mess out with growth returning like before.........hold my beer.
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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Ignorance is bliss but no excuse.
Join Date: Feb 2016
Location: FL Whatever
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Last edited by ROW_BOT; 17th Jan 2019 at 01:53.
Join Date: Feb 2016
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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......
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......
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!
. 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!Join Date: Feb 2016
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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?
Join Date: Apr 2004
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Maybe they’ve decided to come clean. Or been forced to by the HTA/CAD?
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.
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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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.
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.
Join Date: Nov 2006
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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."
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."
Join Date: Jul 2018
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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.
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.