FILE PHOTO: A Hong Kong Airlines Airbus A330-300 descends before landing at Hong Kong Airport in Hong Kong, China April 4, 2018. REUTERS/Bobby Yip
(Reuters) – Hong Kong Airlines, controlled by cash-strapped Chinese conglomerate HNA Group, must shore up its financial position by Dec. 7 or it risks the suspension or loss of its license, the Hong Kong government said on Monday.
Hong Kong’s Transport and Housing Board (THB) said it met with the city’s second-largest airline on Nov. 27 and expressed “grave dissatisfaction and deep concern” that the carrier’s financial position had not improved.
THB on Monday attached new conditions to the airline’s license, requiring it to raise cash and maintain certain cash levels.
Airport Authority Hong Kong said it was “very concerned about the financial situation” of Hong Kong Airlines and the potential impact on its passengers.
Reporting by Jamie Freed in Sydney; Editing by Tom Hogue