Authorities to Hong Kong Airlines: Fix your finances or get the ax
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Hong Kong Airlines has been struggling financially for some time, and now authorities in the city are threatening to suspend its operating license if the company doesn’t stabilize its books by the end of the week.
Hong Kong’s Air Transport Licensing Authority (ALTA) said the airline must receive a cash infusion and prove it can maintain a certain cash level by Dec. 7.
“After careful consideration of the financial position of HKA [Hong Kong Airlines] at present, ATLA must take immediate and resolute action to prevent further deterioration of HKA’s situation in order to protect public interests,” a spokesman for the authority said in a statement.
The deterioration of Hong Kong Airlines’ financial position was accelerated by ongoing anti-Chinese protests, which have reduced travel demand to its namesake and home city. After receiving an update on the company’s finances from its senior executives on Nov. 29, ALTA said that it was not confident that the airline could pay its employees’ salaries or continue to provide satisfactory service to its passengers.
Related: When to Buy Travel Insurance Versus When to Rely on Credit Card Protections
The airline had previously cut routes to a number of cities, including Los Angeles and Vancouver. And, according to the South China Morning Post, it also had to turn off its inflight entertainment after failing to pay the vendor.
Last week, TPG reported some staff members weren’t being paid.
Although Hong Kong Airlines said its operations will continue to run normally, flyers traveling on the carrier should consider precautions — especially for flights beyond Dec. 7.
Consider travel insurance and double check what travel protections are offered by the credit card you used to book the trip.
This post has been updated to reflect that the travel rebooking service Freebird is only available for domestic U.S. itineraries.
Featured photo by Alberto Riva/The Points Guy
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.