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Is Hong Kong Airlines going Down?

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  1. #21

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    @jw1701 - what does "IFE cutoff" mean?


  2. #22

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    Quote Originally Posted by shri
    @jw1701 - what does "IFE cutoff" mean?
    No more Inflight Entertainment. They couldn't pay the supplier - presumably they pay for content on a subscription basis.
    shri likes this.

  3. #23

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    Quote Originally Posted by jw1701
    HKAs business model (low fare, high cost, leisure) is a confused mess, any bailout would be more good money after bad.

    HK Express had the better strategy to open up new low cost markets in north asia which is presumably why CX snapped them up
    Which is why even if HK Airlines gets the bail-out money, they won't be out of the woods yet. They need a complete restructuring of their entire company, sweep out all the current management, replace the business model and so on. And it hardly helps that the protests have driven down passenger traffic. If even an establshed carrier like CX is struggling too, a smaller less well-managed company is not going to find it's operating environment any easier.

    If sweeping changes don't happen, HNA may well be throwing good money after bad here, HK Airlines may end up back where we are now after burning through this extra cash.

  4. #24

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    I have the feeling no news is bad news here... This loan was announced yesterday(?), to boost people's confidence in the airline they would have announced it straight away if they planned to inject it to HKA. Probably won't happen


  5. #25

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    Quote Originally Posted by Coolboy
    Both. There has been a sort of "death watch" on the airline ever since parent Hainan Airlines started running short of cash and needed to offload assets. The has also been office politics, power struggle and court battle over who actually owns the airline and the composition of senior management, with charges of embezzlement and corruption thrown about. Hehe, almost like an episode of Game of Thrones minus the sex and violence.

    Bottom line, I won't be booking on the airline anytime soon.
    Sounds like a typical HK corporate gig?

  6. #26

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    Quote Originally Posted by jago25_98
    Sounds like a typical HK corporate gig?
    Hehe, I suppose, if you want to see it that way, but there is a difference.

    Corporate governance in HK is always somewhat of a question mark for certain firms that much is true, but the difference though, is that most large HK-based companies aren't so frequently placed in danger of bankruptcy and collapse. There certainly have been cases of collapse of big HK listed or private firms, but not so common as you would think.

    HK Airlines stand out for struggling for so long. A shame really. From the passenger's perspective, their onboard quality and service weren't that bad. Maybe not necessarily up to CX level, but probably better than most North American carriers domestic economy at least. It's been burdened by being part of the HNA group and the debts that go with it. Had that not been the case, had HNA made a clean break and sold off HK Airlines some years ago, it might have been a different story.
    Last edited by Coolboy; 04-12-2019 at 10:39 AM.
    imparanoic likes this.

  7. #27

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    So, HNA's just announced that they're going to sell off assets to concentrate on their core business, which is...


    ...airlines!


    https://asia.nikkei.com/Editor-s-Pic...ets-chief-says


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