The carrier, which flies to Southeast Asian beach getaways such as Phuket, Thailand, as well as big Chinese cities, in September applied with Hong Kong's exchange to undertake the first-ever yuan-Hong Kong dollar initial public offering. Its US$500 million IPO had been slated for some time in the first half of the year.
If the company, however, sells a stake to a strategic investor before it lists, it can't list for several months, according to Hong Kong rules. It wasn't immediately clear who the strategic investor is, but it is likely to be another airline, the people said.
Hong Kong Airlines declined to comment.
The company is controlled by Chinese conglomerate HNA Group, which owns a string of assets, including hospitality businesses such as Tangla Hotels & Resorts and container-leasing operations.
Hong Kong Airlines said in 2011 it would list the following year, but that attempt to go public was shelved due to weak markets.
The carrier was set up in the city in 2006 with an aim to break the dominance of bigger rival Cathay Pacific Airways Ltd. and its China-focused unit Dragonair. Yet intensifying competition forced it to cut long-haul services to Moscow and London, and it now is focused on mainly short-haul regional travel.
The carrier operating a fleet of around 24 Airbus aircraft flies mainly regional routes between Hong Kong and other destinations in Asia, including Phuket, Osaka in Japan and Chinese cities such as Beijing and Shanghai.
Source: Wall Street Journal by Prudence Ho and Rick Carew
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