Hong Kong Airlines: insurance company will no longer cover tickets
Direct consequence of the financial crisis of HNA
A Hong Kong insurance company -Blue Cross Asia-Pacific Insurance Ltd- decided to no longer cover any losses if Hong Kong Airlines, controlled by the HNA Group, will be liquidated. The choice made also affects people who have bought tickets for a connection with the company since they will not be insured even the tickets issued from 7 January. According to "South China Morning Post", Hong Kong Airlines would have clarified to its investors and potential passengers that the objective is to sustain long-term financial growth; but the main problem is the fact that HNA is heavily indebted and the Beijing government has ordered it to restructure company level, withdrawing from unprofitable business so as to be able to repay the debts incurred with the banks.
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