This sounds like one of those outfits where the captain has to carry cash to buy gas. On the bright side, if you take a bond for the 787 rating you might not have to worry about paying it back.
Airline Giant HNA Aviation Given Lifeline by Chinese Government
March 5, 2018 Jace Moseley Airlines
China’s HNA Group, owner of Hainan Airlines, has been granted a lifeline by the Chinese government amid recent financial troubles, mainly surrounding a large amount of debt accrued due to numerous acquisitions.
One of HNA’s largest and most well-known entities is HNA Aviation which holds a majority stakes in 13 airlines in China and Hong Kong, including Hainan Airlines, Beijing Capital Airlines, Hong Kong Airlines, and HK Express. The group also has minority stakes in airlines outside of China that include Azul Brazilian Airlines and TAP Air Portugal.
A large part of the debt that has built up is with China National Aviation Fuel Group Ltd. (CNAF). The fuel group holds a near-monopoly on aviation fuel in the country, and although unlisted, the amount of debt HNA Group has grown significantly over the past six calendar months.
Effects of these debts can also seen across some of the airlines in the group, leading to delayed payments on leased aircraft. According to Reuters, these delayed payments have caused concern to multiple leasing units from Bank of China, China Minsheng Banking Corp., and Bank of Communications Co. Top executives from these companies have been in talks regarding recovery talks.
In order to maintain liquidity, HNA has been looking into restructuring operations alongside raising cash by selling equity and real estate assets. Some assets that have been sold include a Sydney office tower and two plots of Hong Kong real estate.
https://airlinegeeks.com/2018/03/05/...se-government/
Fuel Supplier Threatens to Cut Off Hainan Airlines as HNA Runs on Vapor
2018/03/05 by Shawna Kwan
HNA Group chairman Chen Feng has been enlightened by his fuel supplier about skipping payments
HNA’s notorious credit problems could put a sudden stop to its core business of flying airplanes if the mainland conglomerate can’t come up with a way to pay off five months of overdue fuel bills in the next 10 days.
In a formal notice seen by Mingtiandi, South China Bluesky Aviation Oil, a subsidiary of China National Aviation Fuel Group, said it would stop supplying fuel to Hainan Airlines because the flagship HNA unit has missed payments since October 2017. State-owned China National Aviation Fuel Group has near-monopoly rights over jet fuel distribution on the mainland.
“Your company’s behaviour of missing fuel payments has severely affected our operations, and acutely threatens our fuel security,” the state-owned company says in the statement. The Guangzhou-based firm demands that Hainan Airlines Holding Co, pay all of the overdue bills by 4:00 PM on March 16th, and submit a written commitment not to delay future payments.
If the payments are not received, and the Hainan-based airline fails to meet its supplier’s demands, South China Bluesky says it will cease supplying fuel to the carrier on March 18.
https://www.mingtiandi.com/real-esta...esnt-pay-fuel/