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Hainan Airlines to inject USD225m into Grand China Air and HNA Tourism Island

6-Dec-2010 11:18 AM

Hainan Airlines reportedly plans to inject CNY1.5 billion (USD225 million) in Grand China Air with the company also injecting a further CNY1.5 billion into HNA International Tourism Island Development and Construction (HNA Tourism Island) (Yicai/Capital Vue, 04-Dec-2010). Hainan Airlines will now have a 60% stake in China Xinhua Airlines while its controlling shareholder, Grand China Airlines Holdings will hold the remaining 40% stake. Hainan Airlines stated its capital increase in China Xinhua Airlines is aimed at reducing Xinhua Airlines’ debt ratio as well as improve the carrier’s financial position. Upon the completion of the capital injection into HNA Tourism Island, the registered capital of the company will be enlarged to CNY4.5 billion (USD675 million) and the stake held by Hainan Airlines in HNA Tourism Island will increase to 33%. HNA Group and HNA Industrial Holdings will hold a 60% and 7% stake in the company respectively.