05 November, 2019

Hong Kong Airlines to cut operations by 6% as concern grows

The financially troubled Hong Kong Airlines is cutting its operations by around 6% its been confirmed this week. The airline also recently axed its flights to Los Angeles, with the latest cuts coming after an intervention by Hong Kong's civil aviation authorities. The move is designed to protect the firm from further financial negative impacts from the city’s ongoing civil unrest for democracy. The airline is also cutting down the number of times it flies to the Candian city of Vancouver. 

In August, the carrier dropped San Francisco from its route network, saying changes in its business plans had forced the closure. It's not just destinations in North America that are being cut,  the airline is also reducing frequencies to other destinations including: Bangkok, Hangzhou, Osaka, Okinawa, Seoul, Sapporo, Tokyo,  Haikou and Nanjing.

“The airline has been making operational adjustments from time to time to respond to the changing market conditions. Cost-savings measures were also concurrently implemented to mitigate the financial impact on the airline,” the airline said in a statement. 

The territory's Air Transport Licensing Authority has been monitoring the airline closely over recent months and it recently said that Hong Kong Airlines financial position “has shown no sign of improvement” and that the situation “is a matter of concern”. 

“ATLA decided to ask HKA to take immediate and concrete steps with a view to effectively improving the financial situation shortly. Otherwise, ATLA will consider taking appropriate action in accordance with the Regulations in the light of the circumstances,” warned the authority.


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