IconJanuary 10th, 2020
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Hong Kong Airlines Taken To Court due to non-payment of aircraft Leased

Due to the non-payment of several aircraft that Hong Kong Airlines leased from an Irish firm; the company has been taken to the court. As per the statement released to the media, Hong Kong Airlines owes $2.9 million to the Awas Leasing One LLC.

The year has just started and it seems like a year that this struggling airline would rather forget. Even towards the end of 2019, this airline had experienced various difficulties. Besides, the Hong Kong Air Transport Licensing Authority even threatened to revoke its air operators’ certificate. Due to the on-going protest in Hong Kong, the number of passengers in the latter portion of the year strongly decline.

In September last year, Hong Kong Airlines announced that the company was cutting its capacity due to the diminishing number of passengers. Then, towards the end of the month, it has sent over the Airbus A350 to France to enter storage. In November, it has been reported that almost 1,600 employees of this airline company were experiencing a delay in salary. On that same day, the airline released a statement that they need to close its last long-haul route which was Vancouver. The last booking is only until February 2020. In December, it removed its in-flight entertainment system. In the same month, the Hong Kong Air Transport Authority gave the airline at least a week to prove its financial capacity. The following day, the owner of this airline company secured a loan to several banks for half a billion dollars. At least seven of their fleet were then seized in mid-December. The owner is still fighting to bring back the glory of Hong Kong Airlines.

Now, Awas Leasing One LLC sued the airline over $35 Million it just owed three weeks ago. The airline also owes $3 Million for its two Airbus aircraft. Also, Awas Leasing One LLC is seeking for the unpaid rent plus the interest. It also claims that this airline company failed to ground the aircraft as being requested following the given notice on December 19.

Hong Kong Airlines is currently facing various dilemmas and lawsuits with regards to non-payment and those companies are taking legal actions against the airline. Still, Hong Kong Airlines is continuing to risk its future in terms of financial and operational. It is still trying to make ways to save itself from folding.

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