Hainan Airlines revamp may lead to change of control

SHANGHAI: Hainan Airlines, the flagship carrier of embattled HNA Group, said that control of the company could change hands as the company undertakes a widespread restructuring of its assets.

Trading in Hainan Air’s shares has been suspended since January, as have shares in six other HNAaffiliated companies listed on mainland stock markets, as the firms undertake a “major asset restructuring”.

China’s fourth-biggest carrier told an online investor conference that its current controlling shareholder is Grand China Air Co Ltd, which is also its largest shareholder. Grand China Air, in turn, is controlled by Hainan’s state-owned Assets Supervision and Administration Commission and has HNA Group as a major shareholder.

“The company is now communicating, negotiating and proofing its asset restructuring plan, and there is a possibility that the actual controller of the company could change,” the carrier’s president, Xu Jun, told investors in a chatroom post.

“It will ultimately be determined after the plan is approved by the relevant authority.”

HNA, a major aviation-to-financial services group, is in the midst of a drive to restructure its operations and is raising cash by selling equity and real estate assets after a US$50bil acquisition spree over a two-year period. — Reuters