Hong Kong's Air Transport Licensing Authority (ATLA) said it will suspend Hong Kong Airlines' operating license if the carrier can't
shore up its finances by Saturday.
The airline's parent company, HNA Group, may have met that demand by securing a $568 million loan
Monday, reported Forbes.
In a statement Monday, ATLA said that Hong Kong Airlines'
financial position had deteriorated to
such an extent that is has "severely" impacted the carrier's ability to pay
salaries and to provide a satisfactory and reliable operation.
ATLA said that it would require Hong Kong Airlines to make a cash injection and to raise and maintain its cash holding and cash
equivalent level by Dec. 7. ATLA didn't specify how large the injection must be and how
much cash the airline must have on hand.
The cash-strapped discount carrier was already experiencing
significant financial difficulties prior to the pro-democracy protests in Hong
Kong that began this summer. The protests, which have stunted the Hong Kong
travel industry, have increased those challenges.
Last month, Hong Kong Airlines announced that it would end
its lone U.S. service (Hong Kong-Los Angeles) on Feb. 8. The move was
part of a broader 6% capacity reduction.