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AerCap’s Kelly defends Hainan Airlines business model
February 9th 2018
CEO of lessor AerCap, Aengus Kelly, has said Hainan Airlines’ business model was “viable” and that the leasing company would continue to do business with Hainan and its subsidiaries. Read More »
“We're working very closely with the Hainan group at the moment,” Kelly said in a Bloomberg interview on Tuesday. “The issue around Hainan Airlines is not the airlines themselves -- they are viable business models -- so we're willing to work with those airlines because we know there's a viable business.”
The parent of Hainan Airlines and its affiliates, Haikou-headquartered HNA Group, is increasingly feeling the heat from regulators and watchdogs, which are criticising the conglomerate’s myriad and byzantine ownership structures and lack of transparency.
Last month, HNA told creditors it would sell approximately US$16 billion in assets during this year’s first half to repay mounting debt and stave off a liquidity crunch. HNA’s acquisitions have included Germany’s Hahn Airport, substantial holdings in technology companies, the purchase of ground handler, Swissport, for US$2.8 billion, US$1.9 billion for caterer Gategroup, 25% of the global Hilton hotel group for US$6.5 billion and 9.6% of Deutsche Bank for a speculated US$4.5 billion.
Hainan Airlines majority ownership airlines include Lucky Air, Tianjin Airlines, Air Chang'an, Shanxi Airlines and Urumqi Air. AerCap is leasing aircraft to Hainan Airlines and Lucky Air.
