Shenzhen Airlines is reportedly holding talks with the Henan Provincial Coal Chemical Industry Group, a subsidiary of Henan Provincial Government, regarding the restructuring plan for Henan Airlines, which was grounded following an accident in Aug-2011 (Yicai, 10-Jul-2011). Henan Government initially had its Henan Transport Investment Group hold restructuring talks with Shenzhen Airlines this year with the hope of Henan Airlines resuming operations at the end of this month. Shenzhen Airlines reportedly stated it may transfer its 51% stake in Henan Airlines to Henan Provincial Coal Chemical Industry Group.
Shenzhen Airlines may transfer Henan Airlines stake to government
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HNA's Avolon group to acquire CIT Commercial Air, creating world’s third largest aircraft lessor
HNA Group’s remarkable spending spree continues, with the announcement that its Avolon subsidiary will acquire CIT Commercial Air, the aircraft leasing arm of CIT Group.
The USD10 billion deal will create the world’s third largest lessor - and they may be more to come yet.
Avolon itself was only recently acquired by HNA Group, with the USD2.7 billion purchase agreement being finalised in Jan-2016, via Bohai Capital Holdings.
Avolon is now the core aircraft leasing brand for the HNA Group. Including assets from Hong Kong Aviation Capital, Bohai Capital and several smaller HNA Group leasing firms, Avolon has a fleet of nearly 250 aircraft and almost 200 more on order.
Disruption in the airline industry. It will happen sooner than we think: Part 1
There are two essential elements to the airline industry: flying aeroplanes and selling (and buying) seats. More technically this can be described as (1) operational; and (2) marketing and sales. There are other important activities, such as lobbying government to limit competition, and exploiting frequent flyer programmes, but those two are the core activities now facing disruption.
The former is unique to airlines, is uniquely regulated and engages massive governmental regulatory intervention, technical and economic. The marketing and sales activity has some aspects particular to aviation, but generally differs little from any other form of retail – except that most older airlines have tended to be particularly slow at learning the art.
This analysis reviews the nature and degree of disruption in each core area and what potential the future holds. In the regulatory area, China will be the big disruptor as it expands into its new global role; and technology and the associated rise in consumer empowerment will transform the process of buying and selling tickets. It will happen sooner than we expect.