China's HNA Group, of Hainan Airlines, invests in Africa World Airlines, third new start-up in Ghana

Chinese aviation is entering a new phase with the country's HNA Group, which includes Hainan Airlines and Hong Kong Airlines, making the first notable investment in a foreign passenger airline. HNA is taking a stake in Africa World Airlines, a start-up in Ghana that intends to launch low-cost operations this year, joining a crowded field in the West African nation that includes Starbow Airlines and Sir Stelios-backed FastJet, currently operating as Fly540, and incumbent Antrak Air.

Management at Africa World Airlines will be seconded from HNA carriers. HNA takes a long-term view towards investments, which with airlines can sometimes produce inefficiencies, as HNA seeks to build scale ahead of profitability. Africa World intends to start domestic operations modestly, with two Embraer ERJ145LRs, and then expand regionally, across Africa and beyond.

The plan is long term, and therefore consistent with HNA strategy, even if immediate short-term gains are not achieved.