Hong Kong Airlines Parent Company Gets $568 Million Loan

HNA Group has been under pressure from China to divest itself of assets and pay down debt. It had racked up over $100 billion in borrowing as it went on a worldwide acquisitions spree. However it has lacked cash to invest in its businesses. And some businesses have found it difficult to make interest payments or even – like Hong Kong Airlines – to pay employees and for fuel.

Hong Kong regulators have been inspecting Hong Kong Airlines for safety every couple of days, given its financial struggles, and finally gave them mere days to come up with cash or risk having the government shut them down. The deadline is Saturday.

Now, it seems, Chinese state banks have extended a $568 million loan to HNA Group which will use it “to pay staff salaries, aircraft leases, fuel, airport charges and other costs at its affiliated airlines” however it hasn’t confirmed that it will use the funds for those purposes at Hong Kong Airlines. They own other aviation firms including Hainan Airlines as well.

I’m still not buying Hong Kong Airlines tickets at this point.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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