Hong Kong Airlines (HX, Hong Kong International) has locked in the funding required to complete its restructuring plan. The new investors include the Liaoning Fangda Group, the controlling owner of Hainan Airlines Holding. In a statement, Hong Kong Airlines says the funding will hasten its business recovery and growth.
The statement issued on April 26 identifies Liu Yi Nan in a photo with Hong Kong Airlines Chairman Hou Wei at an event in Hong Kong this week marking the funding announcement. Liu is on the board of Liaoning Fangda Group Enterprise Co., Ltd. The statement described Lui as a "representative of new investors." In late 2021, Liaoning Fangda acquired the aviation arm of HNA Group. Included in the acquisition were Hainan Airlines (HU, Haikou), Air Changan (9H, Xi'an Xianyang), China Xinhua Airlines (Beijing Capital), Future Air (FJT), GX Airlines (GX, Nanning), Lucky Air (China) (8L, Dali), Shanxi Airlines (Taiyuan), and Urumqi Air (UQ, Urumqi). The statement did not put a figure on Liaoning Fangda's total planned investment in Hong Kong Airlines and the carrier told ch-aviaton that it was not in a position to disclose further details at the present time. However, the statement said that "new investors had paid HKD3 billion Hong Kong dollars (USD282 million dollars) to help repay the carrier's debt. Hong Kong Airlines completed a dual UK-Hong Kong restructuring last year, which included renegotiating HKD49 billion (USD6.2 billion) worth of debt.
"We are pledged to providing full support to Hong Kong Airlines to take it to new heights again in the Hong Kong and international aviation markets," said Liu. "In addition, we will actively respond to the development of the Guangdong-Hong Kong-Macao Greater Bay Area and strive to strengthen Hong Kong's dominant position in the aviation sector. We are committed to building Hong Kong into an international hub."
In addition to reducing its debt, Hong Kong Airlines has downsized its fleet to 30 aircraft during the restructuring process. According to ch-aviation fleets data, only 12 of those aircraft are flying, including nine A320-200s and three A330-300s. The carrier now flies to 20 destinations in eight countries from its Hong Kong hub.
"After three incredibly challenging years, Hong Kong Airlines is ready to embark on a new chapter," said Hou. "In the year ahead, our focus remains on business recovery, supported by strategic route planning and fleet realignment. The company will strive to offer our customers more choices and top-notch service, strengthening our role in developing Hong Kong as a world-class aviation hub."
