Hong Kong Airlines aircraft seized by Airport authorities

Seven aircraft have been seized from the airline by airport authorities who say they are protecting their financial interests.

The aircraft, some of which haven’t been used for up to 11 months as the cash strapped airline slashed services to save money, and stopped paying leases, include a pair of Airbus A350-900’s B-LGE and B-LGH.

These are leased from An Irish Subsidiary of Kuwait based ALFC, and they have already tried to get the USD$47.3m they are owed in back rentals. They will probably look to repossess the aircraft.

With the airport charging for every 15 minutes the aircraft are parked HKA also owes it some USD$2.1m in fees for storage.

HKA was quick to remind everyone it was flying normally and that this dispute was a side issue. Clearly the airport and the leasing companies don’t quite see it that way. It’s hard on the airport too as it has precious little space available to have 7 aircraft sat about indefinitely.