HNA Group subsidiary Grand China Air has signed a USD1.2 billion capital injection agreement with private equity investor Chongqing Shenyin Longshen Investment Co. The investment will help the carrier fund aircraft purchases, repay short-term loans and conduct an IPO in the Hong Kong stock exchange.
Grand China Air was established in 2007 through the merger of four carriers including Hainan Airlines to prepare for an IPO in Hong Kong, but the plan to list stalled during the global financial crisis. HNA Group Chairman Chen Feng stated earlier that Grand China Air plans to raise CNY10 billion from private equity investors before listing in Hong Kong this year.
Selected Asia Pacific airline share price movements (% change): 05-May-2011