Hong Kong Airlines had high hopes for growth when it appointed Jackie Chan as brand ambassador two years ago. Its owner, Chinese conglomerate HNA Group, should apply the kung fu disciplines of the famous actor to its finances. One of its many aviation holdings, Hong Kong Airlines — the city’s third-largest — has until Saturday to get back on track or risk losing its airline licence.
HNA has a tough fight ahead. Via its fully controlled holding company Hainan Airlines Holding, HNA owns 24 airlines including Hainan, Beijing Capital Airlines and stakes in TAP Air Portugal and Virgin Australia.
HNA is reaching its financial limits. Having this week sold a controlling stake in one of its budget carriers, West Air, Hainan has had to borrow Rmb4bn ($568m) to pay late salaries. It will need more funds to cover all other overheads. Net debt has almost doubled in the past three years, partly explaining a depressed share price. This is down a third from its March peak.