HNA restructuring may mean ownership changes for China's airlines

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Bankruptcy proceedings for China's HNA Group could have significant consequences for its large stable of airlines. While it is not yet clear exactly what will transpire during the group's restructuring process, it is possible that it may have to divest more of its airlines. Such moves would likely prompt a degree of consolidation in the crowded mainland China market, or to a lesser extent in Hong Kong.

The HNA Group is not liquidating, but it will have to undertake court-supervised restructuring. It is the latest of several Asia-Pacific airline companies to find itself in this predicament - whether voluntarily or involuntarily - since the COVID-19 crisis began.

Of course, HNA Group's financial woes and shaky condition predate the pandemic, and the sudden demand and revenue drop was the final straw.

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