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HNA facing more leasing pressure
March 22nd 2019
Shandong Province freezes HNA shares, HKA negotiating with AerCap. Read More »
Shandong Province has frozen US$1.56 billion of HNA shares due to an unspecified contractual dispute between HNA, Grand China Airlines and Guotai Leasing, which is owned by Shandong Province.
The frozen shares include 3.53% of HNA Holdings held by HNA Group, as well as 24.28% held by Grand China Air, according to an HNA statement from 15 March. The dispute saw Shandong Provincial High People's Court seize the shares at the Shanghai branch of China Securities Depository and Clearing Corporation Limited.
Sister operator Hong Kong Airlines (HKA) had yet to resolve a claim from AerCap as of 16 March, and the airline could not be reached for an update. AerCap filed a claim in February for US$19 million relating to four A350s and two 737-800s. The A350s are operated by HKA while the 737-800s appear to have been sub-leased to Hainan Airlines and have since been returned to AerCap.
Hong Kong’s Air Transport Licensing Authority (ATLA) has requested HKA to submit a business improvement plan. ATLA’s public statements over recent months have taken additional weight, with the authority previously saying it was “gravely concerned” about HKA.
HKA and ATLA would neither confirm nor deny an Orient Aviation report that HKA is prohibited from adding any flights.
HKA said it would accede to the request and that it is “still actively engaging with our aircraft lessors to address the high court issue. We are also communicating regularly with our service providers on other outstanding matters.”
HNA does not have a strong record of ontime payments, but what is different is the growing instances of public action and lawsuits.
