A truly bizarre scenario that has the managers of Hong Kong Airlines screaming it will sue news papers and magazines who say its in financial trouble. Meanwhile the Hong Kong Government agency responsible for airlines and air travel announces it is preparing contingencies incase the airline collapses, especially during the very busy period around the Chinese New Year, which is just weeks away.
Analysts have been struggling to work out – not helped by the airline, how it will pay back a massive set of bonds worth US$575m in just two weeks.
It’s parent HNA Group which amongst others owns Hainan Airlines, has been trying to divest itself of the airline, but unsurprisingly can’t find buyers. The airlines senior management team has pretty much walked out over the last few weeks and months and had to be replaced, and the airline is suing one of its former CEO’s and his consulting firm for some HK$800m.