A tangled web at the HNA Group

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By Vincent Valery

Introduction  

Nov. 18, 2019, © Leeham News: The HNA Group, a Chinese conglomerate with a heavy focus on aviation, has been in the spotlight for a few years as its financial condition deteriorated.

Its current state came from its debt-fueled global acquisition spree, then the challenges in deleveraging.

At some point, the group owned stakes in 20 airlines in Mainland China and abroad. Other notable acquisitions include lessor Avolon, Swissport, Servair, SR Technics, and stakes in two foreign airports.

The HNA Group does not publish accounts. LNA went through the financial statements of its flagship subsidiary Hainan Airlines, since 2000, with the goal of better understanding the group structure and assess the airline business profitability.

 

Summary
  • HNA’s relentless growth;
  • A buying spree bites back;
  • Domestic and foreign airline ownership model;
  • Hainan Airlines accounting.

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