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Hong Kong Airlines has won a reprieve from Hong Kong’s Air Transport Licensing Authority (ATLA) and will be able to continue operations.
The discount carrier had been under a deadline to shore up finances through a cash injection or lose its operating license. In a statement this past weekend, ATLA said that the carrier had met its requirements.
“According to the information provided by Hong Kong Airlines, the airline has raised its cash and cash equivalent to the level stipulated by ATLA and pledged that the level would be maintained,” the agency said.
ATLA has not specified how large of a cash infusion it required of Hong Kong Airlines. The airline’s parent company, HNA Group, secured a $568 million loan on Dec. 2, reported Forbes, but did not specify whether it would use that money for Hong Kong Airlines.
In its own statement Saturday, the carrier said funding for operations will be injected in phases.
“Over the past year, Hong Kong Airlines has rolled out a consolidation program to cut costs, optimize its network and elevate the customer experience,” it said. “Moving forward, we will continue to drive consolidation and strengthen our internal structure to operate more efficiently and improve our revenue.”
Last month, Hong Kong Airlines said it would end its lone U.S. service (Hong Kong-Los Angeles) on Feb. 8. The move is part of a broader 6% capacity reduction.
The carrier was already having significant financial difficulties prior to the pro-democracy protests in Hong Kong that began this summer and have taken a huge toll on the city’s travel industry. The protests have exacerbated the airline’s financial troubles.