Debt-laden HNA has reshuffled jet orders with Europe’s Airbus in a compromise offer that features an order for dozens of A330neo jets, two people conversant in the matter stated, amid reports of a broader overhaul at the Chinese conglomerate.
Airbus in January declared a surprise order for 40 of its A330neo wide-body plane, worth $12 billion at list costs; however, the purchaser’s identity was saved under wraps.
The sources stated the order, dated December 23, came from HNA Group and mirrored efforts already in place to carry out a shake-up of fleet plans that would see some previously unfulfilled jet orders plunge by the wayside.
In December 2019, HNA chairperson Chen Feng stated the firm had confronted cash circulation shortages that forced it to delay some salary funds last year; however, pledged to resolve its liquidity risks this year.
On Wednesday, Bloomberg Information reported that China plans to take over the HNA Group and unload its airline assets as the coronavirus outbreak had further struck the Chinese conglomerate’s capability to meet financial obligations.
A collapse in Chinese airline exercise due to the virus appears to have introduced matters to a head at HNA, Sash Tusa, an aerospace analyst of UK stationed Agency Partners, mentioned in a note.
HNA has ordered dozens of planes from Airbus and its U.S competitor Boeing over the years; however, it has failed to accept delivery of several planes in a standoff stretching back to 2018, based on individuals accustomed to the matter.
The transfer has left several aircraft with distinctive red tail tagging of HNA Group airlines parked outside Airbus plants.