Should VA be worried by the potential collapse of Hong Kong Airlines?

[wannabeinvestmentbanker]

News out in the last few days that Hong Kong airlines may collapse and go into liquidation.

Insurance no longer covering itineraries for airline winding up with this HNA Group member who holds a decent stake in VA and who's lounge is relied upon in Hong Kong.

Insurer Drops Collapse Cover for Travellers With HNA's Hong Kong Airlines

 

[serfty]

Interesting ... I'm booked to fly them tomorrow from BKK. Will watch closely.

 

[ermen]

fwiw its short dated Jan 19 bonds are trading at 80c on the dollar - some people still betting they will be repaid

think though someone would buy/takeover HONAIR. they are the only competitor to CX/KA and do have some slots

 

[wannabeinvestmentbanker]

fwiw its short dated Jan 19 bonds are trading at 80c on the dollar - some people still betting they will be repaid

think though someone would buy/takeover HONAIR. they are the only competitor to CX/KA and do have some slots

I'll have to dig around on my Bloomberg tomorrow to see the yield and discount on their bonds. I would've thought it would all be inter-company loans given the mega debt HNA Group has.

Good point around their slots but you can't discount how loyal Hong Kongers are to CX and Asia Miles.

 

[yohy?!]

Lots of cough slots, particularly HK express's many back of clock departures

Cant see how they would survive if CX is struggling to turn a profit on many of their plum routes - the market isn't big enough for additional full service and LCC carriers here in HK.

Likely see the metal returned to lessor and the slots auctioned off but the tails gone (and good riddance)

 

[yohy?!]

Now you know somethings up...

Troubled Hong Kong Airlines threatens to sue anyone starting ‘untrue and groundless’ rumours about its financial health | South China Morning Post

Local media also reported that the airline must repay HK$4.5 billion in bonds by January 20, a task believed to be challenging for the carrier.

 

[ermen]

would jetstar think its worth buying over / investing in HONAIR given its slots?
it could potentially then establish a firm foothold in HK that way

 

[ermen]

btw whats wrong with HXs slots?
i took a quick look and they seem to be pretty good throughout the day..m

 

[ozstamps]

I was going to reply but might get sued!

We flew them late 2018 biz class to HKG on a VERY cheapo ticket and got the points credited to Virgin fast enough so was pretty happy in the end.

Very sloppy indeed near existent customer service - was near impossible to get pre-allocated seats etc so no loss there. Got several $100 in Duty Free vouchers off them in the end, so that all worked out.

Have used their HKG Lounge a few times and agree,it is pretty nice. We are there again next month so hope they last out until then.

PLEASE do not sue me.

 

[mlob]

I have an award flight booked on them for my family of 4 that I booked with velocity points. Sapporo Japan to Hong Kong. January 26th. Do you think I should be looking at an alternative plan?

 

[mlob]

And Ill add the customer service is terrible. have been trying to calculate fees for carrying ski equipment. The web site is very confusing and when I rang and asked about it they said they'd have to email the check in counter to ask? Of course Ive heard nothing back since.

 

[RooFlyer]

Have used their HKG Lounge a few times and agree,it is pretty nice.

I agree .. a very nice lounge ...

 

[Cool Cat Phil]

btw whats wrong with HXs slots?
i took a quick look and they seem to be pretty good throughout the day..m

3 years ago yes- But JQ seriously got their hands burnt. Maybe another mainland Chinese carrier might set up shop?

 

[serfty]

On board now for a flight to HKG ... Will be at club Autus before VA back to MEL.

FWIW, I used web chat to allocate seats, ensure VA number in the booking etc.

 

[mlob]

Will give web chat a go for seat allocation. I have booked a qantas award on Jetstar Japan as back up. Leaves 20 mins after my Hong Kong airlines flight. Just arrives later as flys via Tokyo. There is some benefit in having points in multiple programs sometimes.

 

[Saab34]

would jetstar think its worth buying over / investing in HONAIR given its slots?
it could potentially then establish a firm foothold in HK that way

I think the industry has learnt from Etihad’s recent track record from becoming involved in financially miserable carriers that it’s probaly just best to just let them die off.

AJ said Jetstar was done with Hong Kong’s ridiculous decision making process and they would never go back. They blew 30million on it as it was.

I’d say Virgin would be interested in more slots. Get Brisbane up and running and Sydney twice a day.

 

[Ausbt]

Have just been in HKG Club Altus this evening, ahead of the HKG-SYD in J. Nice lounge, good showers, sleep pods and massage chairs. Also found HX to be good for internal China flights. They gave us bulkhead exits at no charge. Hope they keep it together.

 

[serfty]

Have just been in HKG Club Altus this evening, ahead of the HKG-SYD in J. Nice lounge, good showers, sleep pods and massage chairs. Also found HX to be good for internal China flights. They gave us bulkhead exits at no charge. Hope they keep it together.

Agreed ..

Looks like we crossed paths - VA82 would have been boarding when I saw this post, so too late.

I too have had a shower, hour nap and some interesting food since arrival.

 

[Bagpuss]

I’d say Virgin would be interested in more slots. Get Brisbane up and running and Sydney twice a day.

I doubt either of this as the HKG route is trying to gain more passengers. The higher probably would be a Brisbane OR Gold Coast service, but unless there is a high enough demand I doubt it.

I'm still surprised they never leased another B777 to enable more MEL - LAX services.

 

[wannabeinvestmentbanker]

Agreed that VA wouldn't be that interested. I think it's tough to compete with QF and CX on this route and considering the prices QF have for HKG return it is not a high yielding route unless last minute Y or J flex.