Hong Kong Airlines has responded angrily to industry rumours of its impending demise.
In a statement, the airline is threatening legal action against people or organisations making ‘groundless’ claims about its financial health.
"We deplore the untrue and groundless speculations about Hong Kong Airlines ceasing operation and applying for liquidation. We reserve the right to take legal action against those who deliberately create these rumours," the company said.
It maintains it is business as usual despite a string of bad news and Hong Kong’s Air Transport Licensing Authority has sought clarification over its ability to continue operating.
The carrier has seen a series of high profile departures from its executive team in the past few months.
Parent company HNA began legal action against consultancy firm owned by a former HK Airlines director for millions in unpaid debt.
Perhaps the biggest pointer of its worsening financial problems came from insurer Blue Cross.
Blue Cross has amended policies restricting claims in the event the carrier goes bust.
HK Airlines is owned by cash-strapped HNA Group which has been selling off assets to reduce its huge billion-dollar debt.
