Hong Kong Airlines avoids losing license over cash crunch

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Hong Kong Airlines avoids losing license over cash crunch
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A Hong Kong air transport regulator said on Saturday it decided against suspendi...

HONG KONG - A Hong Kong air transport regulator said on Saturday it decided against suspending the license of Hong Kong Airlines, the city’s second largest carrier, after it scrambled for funding.

The airline, part-owned by cash-strapped Chinese conglomerate HNA Group, said on Wednesday it had a cash injection plan enabling it to pay outstanding salaries to staff the next day. The regulator had warned the carrier it needed to shore up its financial position by Dec. 7 or risk suspension or loss of its license.

Hong Kong Airlines and larger rival Cathay Pacific Airways Ltd are battling a steep decline in demand as a result of months of anti-government protests in the financial hub.

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