Hainan Airlines Group the next to fail?

[frank kramer]

According to reports on airfleets.net and other places, the Hainan Airlines Group has gone bankrupt last week. This would seem to include the subsidiaries.

https://medium.com/the-mile-high-club/h ... 482bb385bf

[Stratofreighter]

https://www.ch-aviation.com/portal/news ... ainan-govt

02.03.2020 - 12:32 UTC

As its total debts persisted at levels above CNY700 billion yuan (USD100 billion),
HNA Group admitted in a WeChat post on February 29
that it was no longer able to deal with its liquidity risks itself
and asked the government of China’s Hainan province
to lead a working group to help solve the issue.

However, it clarified in a separate statement on March 1
that adjustments to its management structure did not involve changes in the actual control of the group
and would not affect daily operations.

The conglomerate, which holds stakes in or owns several Chinese carriers,
including Hainan Airlines (HU, Haikou),
has been under intensifying pressure since the Covid-19 coronavirus outbreak
brought widespread route and frequency cancellations.

The new joint working group “will fully assist in advancing the group’s risk mitigation work.
Since the liquidity risk broke out in late 2017,
with the support of all parties HNA Group has actively carried out a ‘self-rescue’ but failed to completely resolve the risk,”
the WeChat post said.
“Affected by the acute coronavirus epidemic in 2020, the liquidity risk will increase.

The news follows two weeks of bankruptcy rumours
and speculation that the Chinese government was preparing to take over HNA Group
and sell off its airline assets to carriers such as Air China and China Eastern Airlines
because the outbreak had further weakened its ability to meet financial obligations.

HNA will add two more seats to its five-member board of directors,
it said in its statement on March 1.

https://www.ch-aviation.com/portal/news ... ainan-govt