HNA mulls jet sales to stay afloat

BEIJING: HNA Group Co is in talks to sell a fleet of private jets, including a US$70,000 (RM292,000)-an-hour retro-fitted Boeing 787 and some planes reserved for its leaders, as the debt-laden Chinese conglomerate continues to grapple with liquidity challenges.

HNA is offering to sell dozens of private jets operated by subsidiary Deer Jet Co to potential buyers, said people familiar with the matter.

The luxury planes, many of which were rented out to ultrawealthy fliers, include models from Airbus SE, Bombardier Inc, Dassault Aviation SA and Gulfstream Aerospace Corp, according to the people.

Deer Jet’s flagship Dream Jet is also up for sale, according to the people. It is a widebody plane equipped with amenities such as a bedroom, dining area and kitchen that can be chartered for the price of a Porsche 718 Boxster S — every hour.

Up until last year, HNA was one of China’s biggest buyers of foreign assets, even though profits stood at only about 0.2 per cent of assets and debts were soaring.

Then HNA’s borrowing costs began catching up with the company, forcing it to reverse its freespending ways.

This year alone, it’s agreed to sell more than US$22 billion in properties and shares to stay in business, according to a tally.

The company is also said to be in advanced talks to sell its Swiss airport-cargo handler, exit its investment in Deutsche Bank AG and look for a buyer for its US$1 billion container-leasing business Seaco.

BLOOMBERG PIC Sources say HNA is offering to sell dozens of private jets operated by subsidiary Deer Jet Co, many of which were rented out to ultrawealthy fliers.