Don’t Question Hong Kong Airlines Financial Health — Unless You Want a Lawsuit
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.
There are a number of airlines in for a rough 2019, and one of them is not taking to it kindly.
Hong Kong Airlines is said to be in troubled financial waters, but it doesn’t want anybody knowing that. The airline is threatening legal action against anyone who says it’s experiencing financial issues, reports the South China Morning Post.
Last week insurer Blue Cross changed its policy regarding an event if the airline went under, passengers would no longer receive compensation, therefore ginning up speculation that the carrier is at serious risk of going bankrupt. Before the policy change, Blue Cross insured travelers up to $255 USD if the airline were to fail.
The carrier, which has repeatedly said it’s on stable financial ground, issued a fierce statement defending itself:
“We deplore the untrue and groundless speculations about Hong Kong Airlines ceasing operation and applying for liquidation. We reserve the right to take legal action against those who deliberately create these rumors,” the airline said in a statement issued Saturday.
The carrier, owned by China’s HNA group, which includes Hainan and a number of other airlines, has seen a large number of executives depart recently and is in over its head with debt — which is reportedly over $6.4 billion after purchasing a slew of aircraft including Airbus A350s and A330s. HNA is now even selling off stakes in Hong Kong Airlines to keep it afloat.
Hong Kong’s Air Transport Licensing Authority, which regulates airlines in the Chinese administrative region and has the power to shut them down, has ordered the carrier to “explain its financial situation.” It’s also been ordered to pay back $570 million in bonds by Jan. 20.
To stymy the grim financial tide, it’s put a hold on new aircraft deliveries, halted the launch of new long-haul routes to London and New York and cut other flight frequencies in half.
The massive mistake fare August may have not helped the Hong Kong Airlines’ bottom line, where it was selling transpacific business class for $600 round-trip. TPG has given solid marks to its business and economy class products on the its new A350.
Featured image by Brian Kelly / The Points Guy.
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees