at the end of the day, no one wants to do business that lose money; business losing $$ isn't a business and means no value. No matter how strong the background of Hainan is and how wonderful the FUTURE of the existing HKA/HKE management currently creating are, they will either being sold again or shut down.
I didn;t remember where but i have saw an aritcle about an interview of Mr. Yeung, their president. he stated that HKE will transform to a cargo airline and HKA will be a PAX airline.
after all, i strongly believed that their business isn't performing well but not sure if they are losing money (i have no reason to believe they aren't). their 737 pax capacity is doing fine but not sure about cargo below. their 330 pax capacity is performing poorly as their J class is always empty or with only 1-3 paxs while their Y class usually just around 60-70% filled. heard that one of their BKK flight with only 6 pax on board. with 2 more a330 comming next month and some 19 a320 expected to begin delivery in 6 months from mid 2011, i am excited to see what will happen.