Hong Kong Airlines Gains Creditor Approval for Restructuring
Hong Kong Airlines had a positive creditors' meeting after receiving permission from the High Court of England and Wales.
Hong Kong Airlines had a positive creditors' meeting after receiving permission from the High Court of England and Wales.
DALLAS — Hong Kong Airlines (HX) has passed the first step of its debt restructuring process in the United Kingdom. The airline received approval from its creditors for its restructuring plan.
The carrier, by China’s HNA Group, had a creditors' meeting on December 1 after receiving permission from the High Court of England and Wales.
China’s HNA Group is affiliated with Chinese carriers, including Hainan Airlines (HU), Lucky Air (8L), Capitol Air (CP), and Beijing Capital Airlines (JD), among others. The group also has stakes in Azul (AD), TAP Air Portugal (TP), and Africa World Airlines (AW).
According to the carrier, almost 91% of unsecured creditors voted for the plan, and 80% of perpetual creditors approved the plan. Also, all 13 of the “critical lessors” at the meeting voted for the plan.
The creditor's approval now allows HX to have a sanctioned meeting, which will be on December 9.
On September 27, HX filed for debt restructuring in courts in the United Kingdom and Hong Kong. According to the carrier, it has US$6.3bn in debt. As a result, the carrier will slim down its fleet from 53 aircraft to only 20.
Currently, HX operates a mix of short-haul and long-haul aircraft. This includes the Airbus A320, Airbus A330-200, Airbus A330-300, and Airbus A350-900. The airline flies to a mix of destinations in mainland China, as well as to South Korea, Taiwan, the Philippines, and Japan.
Hong Kong Airlines has suffered from high travel demand as a result of the COVID-19 pandemic. According to the airline, from February 2019 to January 2020, the airline served 6.9 million travelers, which dropped to 217,000 from February 2020 until January 2021.
The airline also has cut the number of employees by 65% throughout the pandemic.
https://airwaysmag.com/cr-airways-hong-kong-airlines/
Featured image: Hong Kong Airlines B-LNJ Airbus A330-243. Photo: Liam Funnell/Airways
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