The authority warned to take action unless the situation improves.
The Air Transport Licensing Authority (ATLA) has warned Hong Kong Airlines (HKA) to “take immediate and concrete steps to improve its financial situation” else the authority take action in accordance with regulations, the statutory body said in a statement.
“Having considered information recently submitted by the airline, the authority is of the view that the airline's financial situation has shown no sign of improvement and is a matter of concern,” ATLA stated.
“After its meeting today, the authority decided to ask the airline to take steps to improve its financial circumstances shortly. Otherwise, the authority will consider taking appropriate action in accordance with the regulations,” they added.
ATLA has repeatedly asked the airline to submit financial improvement plans in accordance with its regulation.
After its expansion projects failed to return gains, HKA cut its passenger fleet and reduced long-haul flights to these new international routes such as Vancouver and Los Angeles. HKA also ended its Auckland flights last May, and ended its San Francisco services in October.
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