Hainan Airlines mulls purchase of aviation assets and a hotel from HNA Group

Hainan Airlines is mulling the purchase of aviation assets and a major hotel from parent HNA Group and independent third parties, which include several Chinese airlines and a foregin hotel operator.

Hainan Airines plans to use cash and funds raised through a new share issuance to finance the asset purchases.

Hainan Airlines also recently announced it will purchase West Air, Air Guilin, and HNA Hospitality Group, Hainan Sky Plumage Flight Training, HNA Technic, and SR Technics from its parent or independent third parties, pending regulatory approval.

The airline expects overseas assets to account for 48-65% of all outlays involved in this overhaul, which need regulatory approval. As a result, the company plans to extend the suspension of trading its shares to no later than 09 June 2018.