HNA/Hainan Airlines buys 6.2% of South Africa's Comair, accelerating China-Africa aviation links

China's expansive HNA Group, including flagship carrier Hainan Airlines, is continuing its international acquisition strategy with a USD13 million investment for a 6.2% stake in South Africa's Comair, which operates a full-service brand under a British Airways franchise and a low-cost carrier, Kulula. Uniquely to recent airline acquisitions, Comair is well-run and profitable. The purchase has been made for less than half the cost of a narrowbody jet, making it perhaps relatively inexpensive.

The synergies between the parties are unclear. Comair does not fly outside of southern Africa while HNA no longer flies to Africa - and if it did, it probably would not need an investment stake to work with Comair, which is generally open to partnerships. HNA is an investor in Ghana's Africa World Airlines, but there are no network links (yet) between that airline and Comair.

The investment comes after HNA and Air China are understood to have looked at investing in South African Airways, although this was too politically difficult. Africa is a new theme for Chinese aviation, with growing air routes, airport infrastructure projects and placement of Chinese aircraft to African airlines and governments.