Financially struggling Hong Kong Airlines axing more long-hauls flights.
Airline announced to reduce flight frequencies to Vancouver in Canada, and Los Angeles and San Francisco in United states.
From June this year, flights to Vancouver will be reduced to three a week from a daily service, and from September flights to San Francisco reduced to three a week from four., and flights to Los Angeles will be trimmed from seven to five a week.
Airline also announced last month to cancel flights to Auckland, New Zealand.
The Hainan Airlines Group (HNA)-controlled carrier was sued by two companies for more than HK$150 million (US$19 million) in unpaid fees for rented planes. Also Hong Kong Airlines’ bond prices with a maturity date of January 20 saw the yield plunge to around 200 percent level following the report from REDD Intelligence in New York.
In the meanwhile China Development Bank said, it is willing to bail out troubled Hong Kong Airlines by providing US$550 million (HK$4.3 billion) to cover its debts.