Hong Kong (AFP)
Seven aircrafts from the troubled Hong Kong Airlines were seized and immobilized on the tarmac at the megalopolis airport due to a default, authorities said on Tuesday.
The airport authority said the company's low-cost planes, which have not been used for passenger transportation in recent months, were seized due to a default.
The law grants the Hong Kong air regulatory authority the right to seize aircraft for failure to pay fees.
These devices can be sold after 60 days if the payment of the sums due has not yet been made within this period.
"Our operation remains normal," said Hong Kong Airlines in a statement.
These seizures will increase concerns about the financial condition of Hong Kong Airlines.
The company, owned by HNA Group, a Chinese conglomerate itself in difficulty, announced in late November to be "hard hit" by nearly six months of demonstrations in Hong Kong, which had caused a delay in the payment of wages.
The crisis that the former British colony has been going through since June has dealt a severe blow to tourist numbers, with a massive drop in the number of visitors to the semi-autonomous territory, and has put many airlines serving Hong Kong in difficulty.
In early December, the Hong Kong civil aviation authorities decided not to punish the low-cost company for the late payment of wages and its persistent financial problems, allowing it to continue operations.
The carrier had announced at the last minute an injection of funds, which had allowed it to obtain a stay.
This drop in tourist numbers is severely affecting the economy of Hong Kong, already weighed down by the trade war between Washington and Beijing. Hong Kong went into recession in the third quarter.
Hong Kong airline Cathay Pacific was also affected by the decline in passenger traffic, which fell 9% in November compared to last year. It is the third consecutive month of decline for the company.
© 2019 AFP