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Hong Kong Airlines

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Hong Kong Airlines

Old 9th Jun 2021, 12:45
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Join Date: May 2016
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Hong Kong Airlines

Just been reading through the SCMP and the latest news on HX. Just surprised they have lasted so long with the events of the past 2 to 3 years.
Are their days well and truly numbered now or will another cash injection from an outside source be forthcoming and save their bacon again?
Papering over cracks continually by the looks of it.
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Old 10th Jun 2021, 03:55
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Here is the RTHK article (no sub required):

Could the same fate be on the cards for CXi?

Top tip for today: Sell your bitcoins, buy airline shares

HK Airlines to operate just 8 jets in restructure
https://news.rthk.hk/rthk/en/compone...5-20210610.htm

Last edited by Curry Lamb; 10th Jun 2021 at 04:36.
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Old 10th Jun 2021, 05:47
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Hong Kong-based Hip Hing Construction Company Limited has slapped cash-strapped Hong Kong Airlines with its second lawsuit in the space of a week, alleging non-payment of fees plus interest totalling HKD296.4 million Hong Kong dollars (USD38.2 million) linked to the building of an aviation training centre.

The claim, filed at the High Court of the Hong Kong Special Administrative Region on May 4, followed a suit which Fuzhou-based Industrial Bank lodged against the airline on April 28, chasing unpaid dues related to the construction of the same building, the South China Morning Post reported citing court documents.

Situated in Chek Lap Kok on Hong Kong’s Lantau Island, the HKD1.8 billion (USD232 million) 11-storey Hong Kong Airlines Aviation Training Centre houses 24 classrooms and 12 flight simulators, a training hall, and a swimming pool, among other facilities.

Hip Hing’s claim relates to a contract it signed with Hong Kong Airlines on November 29, 2018, but the court filing provided no further details other than the outstanding sum: HKD216 million (USD27.8 million) plus HKD80.4 million (USD10.4 million) in interest up to the end of April.

Interest will continue to be calculated, it added, at the rate of 15% per year until payment is made, as stipulated in the contract.

Industrial Bank filed its lawsuit over the alleged non-payment of two loans of unspecified amounts. The 5,858sqm plot of land where the centre sits was used as collateral, local media reported. The bank asked the court to order the airline to repay or surrender the land.

ch-aviation has asked Hong Kong Airlines for comment.
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Old 10th Jun 2021, 06:22
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Join Date: Mar 2015
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Doesn't look good for HKA. If I was there I would be applying to CX (government financial support extended), so you might as well be on the CX wait list. Might further reduce immd desire to review work visas for expats though. CX have created the problem by undermining standards so much they can't argue someone with a weak pulse and not much more is not a suitable pilot.
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Old 10th Jun 2021, 09:30
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My bet is that they will silently wind down further, with Hainan Airlines filling their shoes in HK post-pandemic (possibly absorbing some HX crew??).

If they couldn't make the business model stack up when the times were good, I will be amazed if they can reinvent themselves into a financially sustainable entity now
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Old 16th Jun 2021, 11:57
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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.
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