HNA restructuring may mean ownership changes for China's airlines
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.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.