Hong Kong Airlines Gets Restructuring Approval
Hong Kong's High Court has given Hong Kong Airlines (HX) the green light for its restructuring plan.
Hong Kong's High Court has given Hong Kong Airlines (HX) the green light for its restructuring plan.
DALLAS - Troubled Hong Kong Airlines (HX) HK$49bn (US$6.3bn) restructuring plan has been approved by the country's high court. A UK court gave the restructuring plan the green light on December 9, and it now has the backing of the carrier's creditors. The airline's current debt is estimated at around HK$49bn (US$6bn).
The plan will see HX's fleet reduced from 53 aircraft to 20. According to Cirium fleet data, the airline currently has eight aircraft in service, five Airbus A320s and three A330-300s. A new investor will also provide the carrier HK$3bn (US$385m).
HX commenced operations in 2006 but has struggled in recent years following civil unrest in 2018-2019 and the stringent COVID restrictions that virtually shut off Hong Kong from the outside world. Its parent company, the HNA Group, also went into bankruptcy restructuring in February 2021.
Speaking on LinkedIn, the airline's chief financial officer Dean Zeng said, "We are looking forward to activating the restructuring effective date before March. Meanwhile, HKA will continuously resume passenger flights in Asia Pacific Region, improve our service for travellers, and of course maintain a high-level safety score."
https://airwaysmag.com/hong-kong-airlines-creditor-approval/
Featured Image: Hong Kong Airlines Airbus A330. Photo: Liam Funnell/Airways.
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