Restructuring ‘deemed essential’ to assist Hong Kong Airways keep afloat | Information

Embattled Hong Kong Airways (HKA) has hinted at restructuring right into a “leaner and extra environment friendly” service, because the coronavirus pandemic worsens its shaky monetary scenario. 

The service, nonetheless, didn’t touch upon experiences of job cuts and a shift in direction of being a cargo-only service to outlive the pandemic. 

A South China Morning Put up report on 7 June cites firm sources as saying that HKA will slash “a whole lot of extra jobs” within the coming months. The report provides that the service will floor its complete fleet of Airbus A320s and solely fly its A330s to hold cargo.

Cirium fleets knowledge exhibits HKA to have an in-service fleet of simply seven jets, comprising one A320 and 6 A330-300s. 10 A320s and 11 A330s stay in storage, as are the service’s fleet of six A350-900s, which it beforehand used on long-haul routes. Subsidiary Hong Kong Air Cargo has 5 A330 freighters in operation. 

Responding to FlightGlobal’s request for affirmation, HKA would solely say: “To make sure that Hong Kong Airways is in a greater place to function within the difficult years forward, an inner restructure is deemed essential to assist the corporate obtain a leaner and extra environment friendly organisation.”

The service, owned partially by now-bankrupt HNA Group of China, provides that it’ll “talk particulars to our staff within the coming days”. 

The current improvement is the most recent in a string of crises to engulf the service, which has principally laid low amid the coronavirus pandemic. 

It was reported in December that the service minimize 250 cabin crew jobs, months after slashing a whole lot extra roles throughout the corporate. Those who remained have additionally needed to take important pay cuts. 

In 2019, the service confronted regulatory scrutiny after being tormented by a slew of economic troubles. It narrowly missed having its licence revoked by Hong Kong’s Air Transport Licensing Authority, after being handed a monetary lifeline on the eleventh hour, within the type of an urgently-drawn-up money injection plan. 

In early January 2020, the service was reported to be going through authorized motion from lessors over $40 million in unpaid hire. 

Woes at HKA controlling shareholder HNA Group — positioned beneath chapter by its collectors earlier this yr — haven’t helped its case both, and the coronavirus pandemic — with its subsequent collapse in journey demand — additional exacerbated its issues. 

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