Hong Kong Airlines Looks to Cut Fleet as Financial Burdens Mount

Mar 2, 2019

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 is looking to cut as many as 10 aircraft from its current fleet as public doubt over the financial viability of the company continues to mount. Government regulators are pushing for the airline to turn over financial statements as the government has again strongly stated doubt over the health of the airline.

The battle between the airline and government regulators has been raging for months as the airline attempts to challenge the idea that it could at any moment go out of business. The airline went so far as to issue a threat to sue anyone who stated untrue or groundless rumors about the demise of the airline.

Most recently, the airline has said it’s looking at possibly cutting its fleet to help with its current cash strapped situation. The airline is looking to remove A330-200s from its current fleet to focus on the larger aircraft that can move more passengers and more cargo. Last month, the airline stopped all operations to Auckland in an effort to reduce costs.

As the airline moves to reduce its operating costs, it’s also fighting two lawsuits from companies it leases planes from. The two suits claim that the airline is behind almost $20 million in lease payments on aircraft it’s currently operating.

This comes as the airline currently has four aircraft sitting in Toulouse that it can’t afford to take ownership of at the moment. The planes — three A350-900s and one A330-300 — remain parked at Airbus headquarters. Given the company’s current cash flow issues, it’s doubtful that even with the reduction in fleet these aircraft will be delivered anytime soon.

While the only change in routes for now is limited to the Auckland flights, it remains to be seen if the company will cut additional routes as it looks to shore up its financial situation. The airline normally offers great fares — even honoring mistake fares — between the US and Asia, so this could be a huge loss for travelers looking to score a great deal to Asia should the airline continue to cut its service routes.

H/T: South China Morning Post

This story has been updated to reflect that Hong Kong Airlines is looking to remove A330-200s from its current fleet. A prior version of the story had incorrectly reported that the airline would be removing A350-200s.

Featured Photo by Marcio Rodrigo Machado/S3studio/Getty Images

Chase Sapphire Preferred® Card

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.

Apply Now
More Things to Know
  • 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
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Intro APR on Purchases
N/A
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

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.