HNA becomes first private airline to get bailout

Chinese aviation conglomerate HNA Group, which counts US billionaire George Soros among its shareholders, is to receive a US$72.3 million government bailout, the South China Morning Post reported. It will be the first capital injection by the state into a privately owned airline. The Tianjin government’s money will go toward shoring up Tianjin-based HNA Grand China Express – an amalgamation of Hainan Airlines, Shanxi Airlines, Chang’an Airlines and China Xinhua Airlines – and Bohai Leasing. The Ministry of Finance is to subsidize the purchase of new aircraft. According to market watchers, the Tianjin government didn’t want to see Grand China Express fail, as the airline gives the city credibility as a regional hub. The airline is also a customer of Airbus, which has set up an assembly line in Tianjin. Tianjin-based Okay Airlines grounded its entire fleet earlier this month due to financial pressures. Sichuan-based United Eagle Airlines is also said to be in trouble.