News
Tianjin Airlines receives cash injection
February 23rd 2018
HNA Group subsidiary, Tianjin Airlines, has received a RMB400 million (US$65 million) cash injection from one of its minority shareholders, Tianjin Bonded Zone Investment Co., to alleviate a recent liquidity crunch at the parent group and its affiliates. Read More »
In recent months, HNA Group chairman, Chen Feng, acknowledged the company was facing a liquidity crisis and six subsidiaries have suspended stock trading. Last week, HNA received a lifeline RMB20 billion credit line from China CITIC Bank.
The HSBC group has advised its bankers against writing deals with the Chinese conglomerate in recent months due to reservations centred around HNA Group’s heavy debt burden, which is reported to exceed its assets.
Tianjin Airlines was launched in 2009 as a joint venture between the HNA Group and the Tianjin municipal government.
The airline operates more than 100 aircraft, comprising approximately 32 A320 Family jets, five A330 widebodies and approximately 65 Embraer regional jets.
Prior to the recent cash infusion from the municipal government, HNA Group held an 87.3% stake in Tianjin Airlines, while Tianjin Bonded Zone Investment Co. owned 4.2% and Tianjin Chuangxin Investment Partners Co. had the remaining 8.5% share. No updated shareholding figures were released following the transaction.
HNA could also sell down its holdings in Hainan Airlines, Lucky Air (Kunming), Capital Airlines (Beijing), West Air (Chongqing), Chang’an Airlines (Xian), Suparna Airlines (Shanghai), GX Airlines (Nanning), Fuzhou Airlines, Guilin Airlines and Ningbo Airlines.
