Hong Kong Airlines survives for now

Having received a cash injection from Hainan Airlines and paid its staff and suppliers, the Hong King authorities have allowed HKA to keep their AOC.

However it was under the noticeable caveat that the airline would be monitored closely for the foreseeable future.

And there’s good reason to do so. The airlines senior managers are frequently at odds, there’s been no strategy and a lot gets said and not much done, until it’s almost too late.

To demonstrate its lack of strategy one minute its announcing an end to all long haul flying and grounding its A350’s, while the next minute its filing route timings and plans to fly to Vancouver next March again.

Quite where the airline goes from here is difficult to see. It’s unlikely to get bailed out again. It says it wants to concentrate on short and mid-haul operations.

It’s up against The whole Cathay Pacific Group – Cathay Pacific, Cathay Dragon and Hong Kong Express, and it’s in a declining market at the moment, which could be years coming back if the politics of the city don’t change.

More to the point, it must resolve its fiscal and internal management issues. If it doesn’t it’s doomed.