News
Hainan signs US$4.2 billion Boeing order
May 26th 2017
Hainan Airlines’ coffers have not yet emptied. The HNA Group staple carrier has placed a US$4.2 billion top-up order with Boeing for 13 B787-9s and six B737 MAX 8s to manage its continued “rapid growth” in China’s consumer travel market as middle class incomes rise. Read More »
The Haikou-headquartered carrier will issue US$2.18 billion in corporate bonds to help fund the deal.
In March 2015, Hainan ordered 30 B787-9s, worth US$7.7 billion at list prices. The airline also has 10 B787-8s and 11 -9s in service. On Tuesday, lessor Avolon announced the delivery of the latest -9 to Hainan. This is the sixth Avolon aircraft leased to the airline.
The B787-9 will form the backbone of the carrier’s long-haul fleet. Hainan has been aggressive in its route expansion in the last two years, including commencement of monopolistic services Beijing-Berlin, Changsha-Los Angeles and Xian-Sydney.
Hainan has applied to Chinese authorities for rights to launch additional routes to Sydney, as well as flights to Zurich, Tehran and Tijuana.
In 2015 and 2016, HNA bought equity in Azul, Brazil’s third largest airline and also acquired Swiss catering firm Gategroup. It also has holdings in Virgin Australia and TAP and bought 25% of Hilton Worldwide, in addition to buying Ingram Micro, the world’s largest software distributor. A month ago, it became the biggest shareholder in Deutsche Bank when it increased its investment to 9.9%, a decision that maintains its hectic pace of acquisitions in several global companies.
