Hong Kong Airlines gets cash from HNA

With one day to go HKA has managed to get some money from its erstwhile legal parent Hainan Airlines even though it’s not saying that’s where it came from.

HNA received a US$550m approx loan from four Chinese state owned banks and also sold 70% of its shares in Chongqing Airlines to the city government to raise cash.

Suddenly Hong Kong Airlines is paying the staff it failed to pay in November but hasn’t said, if it actually has enough to operate indefinitely. It has to meet Hong Kong authorities (ALTA) minimum standards by Saturday 7th December or face having its licence suspended, which is in effect the end of the line.

The problem for HKA is that they have to show they’ve done enough to keep the airline going longer term, which seems doubtful. At the same time ALTA won’t want to shutter the business and make people unemployed at such an economically and politically difficult time for the semi-autonomous city state.

I suspect the authorities will let it carry on for now but its prospects look bleak without a radical restructuring.