News
Hainan Airlines sells remaining Azul shares
June 29th 2018
China’s Hainan Airlines, the marquee airline of HNA Group’s carriers, will sell its remaining 17% holding in Azul Brazilian Airlines for approximately US$320 million, it was disclosed to the New York Stock Exchange this week. Read More »
“The offering is part of Hainan’s strategic plan, which includes capital raising initiatives, selected divestments, as well as investments in airlines and in the aviation services sector,” Azul said. “Azul and Hainan do not expect the offering to result in any material change to the strategic plan or commercial relationship between Azul and Hainan.”
Hainan purchased 23.7% of Azul in August 2016 for approximately US$450 million. In early May, Hainan sold approximately 4% of its equity in Azul to another minority shareholder in the South American carrier, United Airlines. The transaction was valued at US$138 million at the time.
Azul and Hainan have frequently gone on record to say they would establish codeshare links and roll out other “strategic initiatives”. To date, no codeshare flights have been launched and the commercial relationship between Azul and Hainan is limited. Last year Azul’s five A350-900 leases with AerCap were transferred to the airline conglomerate.
