Hong Kong Airlines to Keep Flying as Regulator Grants Reprieve

  • The firm must satisfy two conditions on cash to keep license
  • HNA-backed airline struggles amid economic downturn, protests
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Hong Kong Airlines Ltd. averted becoming the first carrier to collapse in the city in more than a decade after the local licensing authority said it won’t take further action against the embattled company on certain conditions.

To keep its license, the airline must ensure it has a cash injection at a level determined by Air Transport Licensing Authority, known as ATLA, or provide an alternative to the satisfaction of the regulator by a stipulated deadline, the agency said Saturday in a statement. The company also needs to raise and maintain its cash and cash equivalent level as required by the authority.