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Hong Kong Airlines forced to cut LA route
Cash-strapped Hong Kong Airlines is trimming flight operations with its Los Angeles route being axed from next February.
The HNA Group-backed airline has been under financial strain for many months, even before Hong Kong became rocked by anti-government protests, which has led to capacity cuts from multiple carriers.
The downsizing at Hong Kong Airlines was sparked by the Hong Kong government which is still concerned over its perilous financial health.
"After reviewing the financial improvement plans and financial information recently submitted by HKA, the bureau is of the view that HKA’s financial situation has not improved, and that the situation is a matter of concern," the Transport and Housing Bureau said in a statement.
"It is hoped that this will help improve the operation of Hong Kong Airlines."
The airline said passengers booked on affected flights will be offered alternative travel options.
The airline has taken various measures to trim operational costs in the past few momnths.
Senior executives agreed to a 20% pay cut, and rank and file employees have been offered unpaid leave of four days a month.
The airline has also cut capacity on various other routes.
It flies to 30 destinations in Asia and to North America and is the only Hong Kong based competition to Cathay Pacific Group airlines.
Including the cancelled LA route, the latest cuts will reduce passenger capacity by 6%.
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