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THE Hong Kong Airport Authority seized seven Hong Kong Airlines aircraft after the airline failed to make several payments.
Through an e-mail published recently, the Hong Kong Airport Authority (HKAA) said that the seizure was carried out based on the chapter in the rules on late fines listed in the Airport Authority Ordinance.
The regulation allows the authorities to sell the planes if the company does not pay the payment within 60 days of detention.
Neither Hong Kong Airlines (HKA), which is supported by the Chinese conglomerate HNA Group Co., nor HKAA did not elaborate on the late payment in question.
However, the South China Morning Post reported earlier that the company could have debts of between HK$11 million (US$1.4 million) and HK$17.2 million for aircraft parking and other expenses.
Hong Kong Airlines, whose fleet consists of 39 Airbus SE planes, said that some of the planes were not yet scheduled to operate and were suspended from services based on Airport Authority arrangements.
“[Nevertheless] the company’s operations continue to run normally,” explained HKA, as reported by Bloomberg.
This step is the latest sign that the Hong Kong aviation sector is facing its toughest year since the global financial crisis because of the pro-democracy protests that have hit the city and dragged its economy into recession.
Cathay Pacific Airways Ltd., the number one airline in Hong Kong, has warned that the company will experience a significant decline in revenue.
Protests by pro-democracy protesters in Hong Kong over the past six months have particularly added to the burden on the financial condition of Hong Kong Airlines, which has received the attention of aviation authorities.
In late November, the Hong Kong Airlines said it was delaying payment of salaries for some of its employees due to the impact of protests that had hit the city. The company revealed that revenue had dropped significantly in November, affecting monthly payroll.
Then, in early December, the Hong Kong Airlines received an ultimatum to improve its financial condition or risk losing its operating license. [antaranews / special photo]
