Hong Kong Airlines’ owner secures $568 million loan.
HNA Group has secured a $568 million loan from state-owned banks ensuring Hong Kong Airlines stays operational for now.
The lead bank in the HK$4.4 billion loan is China Development Bank, which has been overseeing HNA’s restructuring. The loan term is three years with a 4.75% interest rate.
The airline has said it will use the cash injection to pay wages, airport charges, fuel and aircraft lease payments.
Approximately 40% of the workforce will have to wait until December 6 to receive their November payslip.
As a consequence, the Air Transport Licensing Authority (ATLA) had delivered an ultimatum to the carrier that a failure to find new cash could lead to the suspension or even termination of its operating licence.
In a bid to cut costs, Hong Kong Airlines announced that it will be cutting several routes from its network, including all flights to North America from February 2020.