Hong Kong Airlines (HKA) faces the prospect of being wound up by 7 December, if it fails to turn its troubled financial situation around. In an ultimatum issued to the beleaguered carrier, in which it ordered "immediate and resolute action" to be taken, Hong Kong's Air Transport Licensing Authority (ATLA) laid down two new licensing conditions for the carrier. It must, by a certain deadline, ensure that cash is injected, and also be able to raise and maintain its cash and cash equivalents. ATLA says it will stipulate what the limit will be, but did not provide any details. ATLA's strongly-worded statement against HKA comes after it held another round of talks with the carrier on 29 November. "If HKA fails to improve its financial situation as required by ATLA by the deadline, ATLA will take further action," the authority, which has the power to revoke a carrier's operating licence, says. A decision will be made, and announced, by 7 December. Separately, Hong Kong's Civil Aviation Department (CAD) says that it has requested for HKA to confirm if it would still be able to operate safely and stringently in accordance with the territory's laws. The department says it will "take appropriate actions" accordingly, including – but not limited to – "varying, suspending or revoking HKA's [air operator's certificate]”. The CAD adds that it has for the past year stepped up checks on HKA's flight operations and aviation safety standards. In total, it has conducted 180 scheduled and unscheduled checks. "The CAD also actively inspects and audits HKA to ensure that its various aspects including equipment, organisation, staffing, maintenance and other arrangements comply with the standards… and to secure its proper and safe operation in compliance with the conditions specified in its AOC," the department states. The airline reportedly failed to pay November salaries for some of its staff, delaying payment till the first week of December. ATLA took the view that HKA's financial position has "deteriorated rapidly", such that it was hampered in its ability to fulfil its obligations as an employer to pay the salaries. HKA also undertook two rounds of capacity cuts in recent weeks — in early November, it said it was slashing capacity by 6% as its financial problems mounted. HKA suspended Los Angeles then, and adjusted frequencies to nine other points in its network, including Osaka, Okinawa, Tokyo and Bangkok. Then, on 29 November, as its management met with ATLA, it completely withdrew from the North American market, axing Vancouver from the network. HKA also suspended Tianjin and Ho Chi Minh City, and said it will be focusing on "priority routes". A day later, it issued a statement saying that in-flight entertainment across its fleet will be "out of service" from 1 December, "until further notice". In a statement responding to the authorities' latest move, HKA says it is "actively communicating with our shareholders and other stakeholders to meet the new requirements". It again blamed the ongoing unrest in Hong Kong for causing weakened demand, and consequently affecting its business and revenue. "We have addressed our financial situation by implementing cost-savings measures, while adjusting our operation from time to time to respond to changing market demand," HKA states. It adds: "We will remain professional and deliver our best customer service to all passengers."

Source: FlightGlobal

Cameroonian operator Camair-Co has disclosed that one of its AVIC Aircraft MA60 turboprops was shot at during its approach to Bafut's Bamenda airport. It has identified the aircraft as TJ-QDB and says it was "fired upon", and received damage to its fuselage, at around 10:40 on 1 December. The aircraft had been operating flight QC272 from Douala, says Camair-Co. Bamenda airport, which has a single runway, is located about 300km north-west of Cameroon's capital Yaounde. "No loss of human life was recorded and, thanks to the courage of the captain, the aircraft was able to land smoothly despite the impact on the fuselage," says the carrier. The MA60 was subsequently grounded while technical assessment of the airframe was conducted. "As a result of this situation, Camair-Co's flight programme has been rescheduled to limit any disruption," the airline adds. The aircraft involved was delivered to the carrier in 2015, as TJX-SE, before being re-registered, according to Cirium fleets data. No NOTAM information has been published by the operator of Bamenda airport, and the carrier has not identified the source of the attack. But the airport is located in the secessionist Ambazonia region of Cameroon which has been involved in an armed conflict with the Cameroonian government over the past two years.

Source: FlightGlobal

Hong Kong Airlines (HKA), which has been plagued by fiscal, is to completely withdraw from the North American market, following a latest round of capacity cuts. It will axe Vancouver — its last North American point — from 12 February next year. This follows the suspension of flights to Los Angeles days earlier on 8 February, and an earlier withdrawal from serving San Francisco. Cirium schedules data indicates the carrier serves Vancouver twice weekly with A350-900s between both cities. HKA will also suspend Tianjin from 10 February, and Ho Chi Minh City from 20 February. The move to cut capacity follows a network strategy review under which the airline will focus on "priority routes" in its network. "While the airline has already reduced its capacity and flights in the coming months, weak travel demand continues to affect its business and revenue," says HKA, attributing its woes to the "challenging business environment" caused by the ongoing unrest in its home city. Earlier this month, the carrier said it was cutting capacity by 6% as its financial problems mounted. It also adjusted frequencies to nine other points in its network, including Osaka, Okinawa, Tokyo and Bangkok. Separately, the South China Morning Post is reporting that Hong Kong's Air Transport Licensing Authority (ATLA) has met with HKA again, to discuss the airline's financial situation. ATLA, which has the authority to revoke an airline's licence on deeming it to have failed to meet applicable regulations, confirmed FlightGlobal's queries that the meeting took place. “[The authority] will make an announcement as soon as possible,” it adds. The meeting was called for HKA’s management to “report the airline’s latest financial situation in detail”. It also comes amid reports that the airline had failed to pay the November salaries of some of its staff, delaying payment till the first week of December. To this, the ATLA says: “[We are] extremely concerned about the inability of [HKA] to make salary payment to some of its staff as scheduled for November 2019.” “[We] will evaluate the information and explanation to be provided by HKA, and will consider whether there is a need to take appropriate action(s),” it adds. A month ago, ATLA said HKA's financial state "showed no sign of improvement", and that it has been monitoring the situation closely. The two sides last met on 25 October, after which ATLA laid out the ultimatum for the airline to shape up or face consequences. Story updated with ATLA's statement.

Source: FlightGlobal