The Hong Kong Airlines reorganization plan includes new investors, which has made it possible for the airline to emerge with a better future.
After enduring some fairly significant financial upheaval over the past few years, Hong Kong Airlines is once again in the clear and set for expansion. The airline declared yesterday that it has obtained the investments required to proceed with and carry out its restructuring strategy.
Hong Kong Airlines (HKA) revealed the existence of its strategic investment fund at a ceremony held yesterday at the airline’s Hong Kong Training Academy. Now that the financial reorganization is complete, the airline can resume its upward growth trajectory and speed up its business recovery, according to HKA.
Huge comeback by HKA
Back in late 2019 when it appeared that the Hong Kong Air Transport Licensing Authority might cancel HKA’s operating license, reaching this level of security seemed unlikely. The declaration made yesterday, according to HKA, “reaffirms the company’s commitment to contributing to Hong Kong’s aviation industry and the city it has called home for over 16 years.”
Senior HKA management, fresh investors, significant stakeholders, and business partners were present during the cocktail reception. HKA Chairman Hou Wei spoke to the crowd and said:
Thanks to their steadfast support and continued faith in the business, Hong Kong Airlines is prepared to start a new chapter with its important stakeholders, business partners, and clients after three tremendously difficult years.
“In the coming year, we will continue to put emphasis on business recovery, which will be aided by strategic route planning and fleet restructuring. In order to strengthen our contribution to making Hong Kong a premier aviation center, the company will work to give clients more options and excellent service.
A subsidiary of China’s Hainan Airlines, Hong Kong Airlines is a part of the HNA Group. HKA advertises a fleet of 30 Airbus aircraft on its website, although ch-aviation.com notes that 18 of those are not currently in use. Leaving that aside, HKA reported that there are two A350-900s, ten A330-200s, twelve A320-200s, and ten A330-300s in the fleet as a whole. Airbus A320s, with a one-class configuration of 174 seats or a two-class configuration of eight business class seats and 144 economy seats, are the most often used aircraft. The Northern Territory of Australia, which provides the optimum storage climate, is home to Alice Springs Airport (ASP), where the A350 planes are kept in the desert.
The restructuring includes new investors.
Originating as CR Airways in 2001, Hong Kong Airlines was later acquired by the HNA Group in 2006 and changed its name to reflect this. Its problems started in 2019 with a double blow from rioting and political unrest as well as the start of the COVID-19 pandemic. To avoid going out of business due to debts of about $6 billion, the airline came to an agreement on a restructuring plan late last year.
Although the announcement did not specify the size and nature of their investment, new investors have come on board to help the airline. A “representative of the new investors,” not a specific person, was cited by HKA as saying to the crowd:
“We have promised to give Hong Kong Airlines our utmost support as it strives to reach new heights in the local and global aviation markets. Additionally, we’ll take a proactive approach to the growth of the Guangdong-Hong Kong-Macao Greater Bay Area and work to maintain Hong Kong’s leading position in the aviation industry. Building Hong Kong into a global hub is something we are devoted to.
HKA began operating flights this month between Fukuoka International Airport (HKG) and Hong Kong International Airport (HKG). On Monday, Wednesday, Friday, and Sunday, the service will run four times a week. With flights to Fukuoka, Tokyo Narita, Okinawa, Osaka, and Sapporo, HKA currently offers five destinations in Japan. With its present network, Hong Kong can travel to 25 places in the Asia-Pacific region.
