Hong Kong Airlines denied reports that the carrier would stop flying and be liquidated. The airline said in a statement on Saturday that “The company has been and is continuing to operate as normal. We remain committed to offering our best service to customers who have chosen to support and fly with us,”
The denial came after a report published on Reuters that Blue Cross Asia-Pacific Insurance Ltd, owned by Bank of East Asia, is to stop offering cover against the possibility of HNA-controled Hong Kong Airlines Holding. Under Blue Cross’s online travel insurance offer, policy holders can claim up to HK$2,000 ($255) if they have paid for a ticket on an airline which publicly announces it is winding up prior to the journey.
However, the airline which operates 38 aircraft to almost 40 destinations in Asia and North America, is part of cash-crunched Chinese conglomerate HNA Group , which is in the process of selling a series of assets acquired during a $50 billion global deal spree.
Before Christmas, Hong Kong’s Air Transport Licensing Authority, which has the power to shut down carriers and approve new ones, ordered the airline to explain its financial situation.