HNA Group and it’s airlines which include Hainan and Hong Kong Airlines are facing buyout by the Chinese regional government and a wholesale sell off of their assets.
Chinese airlines and businesses are facing a major crisis because of the CoVid19 virus, so much so that it’s made the entire, desperately over stretched HNA Group unviable and unable to pay its debts. It owes some $40 billion even having after sold off many of its assets around the world.
HNA was largely considered reckless and over paid for almost everything- it recently sold a major London property for one third of what it paid four years ago.
With airlines in China suffering huge drops in income and leaving tens of thousands of staff unpaid on leave, HNA looks like it will be wound up – and with it the airlines as few buyers look ready to come forward at such a difficult time.
Ironically Hainan Airlines itself is still a viable entity, but Chinese authorities are said to have had enough of trying to prop up the group as it fails to even recoup half of what its spent on useless investments. Hainan Airlines looks like it may be a victim of the wider groups failure.
There remains the possibility the authorities will separate out the airline which would make more sense, but the local government doesn’t want to run it, they’d need to find a buyer and that’s the problem – there just isn’t one.