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Hong Kong Airlines

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

Old 9th Jun 2021, 12:45
  #1 (permalink)  
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Join Date: May 2016
Location: Hong Kong
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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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Join Date: Jun 2020
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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

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
Location: HKG
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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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Old 23rd Jun 2021, 08:02
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Nearly two-thirds of Hong Kong Airlines workers are laid off or take pay cuts
  • The airline, backed by the bankrupt HNA Group, cites in its redundancy notices its plans to reduce operating capacity going forward
  • Employees who opted for pay cuts were effectively required to agree to either five or seven months’ unpaid leave
Almost two-thirds of Hong Kong Airlines’ workforce has either been made redundant or opted to take a significant pay cut to keep their jobs, the Post has learned.

The ailing airline, backed by the bankrupt HNA Group, started issuing redundancy notices on Wednesday.

Of the company’s 2,100 employees, 60 per cent either lost their job or took a steep pay cut. Most of the cutbacks were among the airline’s cabin crew.

According to one of the redundancy letters, the airline cited its recent disclosure that it would be operating just eight Airbus A330 widebody aircraft, primarily to fly cargo.

The repositioning reflected its lack of confidence in a recovery in passenger demand, while air freight has been a profit-generating enterprise.

Under its drastic rescue plan, the airline grounded all of its Airbus A320 short-haul planes, though only a handful of the dozen operated by the airline had been flying during the pandemic.

Wednesday’s pay cuts call for staff to agree to take either six or nine months of leave in exchange for just one or two months’ pay, respectively.

The carrier said it would also move out of its main headquarters in Tung Chung to its training centre at Hong Kong International Airport to cut costs.

A new pilot contract was also introduced cutting basic pay by a fifth and removing a guarantee on the number of paid hours per month, while extending unpaid leave.

The Post has contacted the airline for comment.
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Old 24th Jun 2021, 06:09
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Join Date: Sep 2017
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Best of luck to the large number of HKA pilots laid off yesterday, hopefully you’ll fly clearer skies soon!
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Old 24th Jun 2021, 07:52
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Join Date: Mar 2015
Location: HKG
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Maybe they will be on the phone to Immigration. Qualified pilots in HKG out of work, while CX based pilots are applying for work visas.

Before the CX Sky Gods claim the HKA crew aren't worthy, remember that these days the only real requirement is a license. The HKG carriers (and the 'regulator') don't give a shit about experience. In time we will make Lion look good.
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Old 24th Jun 2021, 10:23
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Join Date: May 2012
Location: HK
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you are mistaken HKA has had its visas renewed
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Old 24th Jun 2021, 21:55
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Join Date: Mar 2015
Location: HKG
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If a HKA pilot was working on a work visa and gets sacked my understanding is that they loose the visa and then have to apply for a visitor visa to remain in HKG.

If a HKA pilot has a PR ID or HKG Passport and is fired they would have grounds to oppose the issue of work visas to any of the CX Based pilots who are now applying for work visas to return to HKG. CX's employment record since the introduction POS18 has established that a CPL and weak pulse is all that is required to fly for CX - so they can't argue that the HKA pilots are not suitable.
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Old 25th Jun 2021, 01:33
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Join Date: Jun 2007
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You don't lose your work visa when you are laid off. You can remain in Hong Kong until the end of your work visa validity and even apply for a job. Your new employer just has to apply to IMMD for change of sponsor on the visa you own (personal experience).
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Old 27th Jun 2021, 19:52
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Join Date: Jul 2014
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What happened to the HKA A350? When I was at ka, I remember 3 years ago, their A350/ 330 recruitment road shows at the clk Marriott attracting some very senior KA captains. None took the bait of course.

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Old 27th Jun 2021, 23:55
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Join Date: May 2012
Location: HK
Posts: 96
seized by creditor (s)
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Old 20th Dec 2021, 09:02
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Join Date: May 2016
Location: Hong Kong
Posts: 8
Whilst CX has been grabbing all the local headlines...whats going on a HX these days?
Any insider information from anyone?
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