A decision by creditors of Chinese conglomerate HNA Group to apply for bankruptcy proceedings could impact the 737-800 market as almost a third of the total fleet is operated by the 14 Chinese airlines within the group.
The Hainan-based company says in a statement that it received a notice issued by the Hainan Provincial Higher People’s Court in which relevant creditors applied for bankruptcy and reorganisation because the group could not pay off its debts.
“Our group will cooperate with the court to conduct judicial review in accordance with the law, actively promote debt disposal, and support the court to protect the legal rights and interests of creditors in accordance with the law to ensure the smooth progress of production and operation of the enterprise,” says HNA.
The 737-800 is the asset class most exposed to the group with an estimated 202 units, according to Airfinance Journal’s Fleet. Another 43 aircraft are 737-700 models.
The A320 models account for 129 aircraft, including 31 A320neos. Another 27 are A321 and A321neo models.
One the widebody side the A330-300 model is the most exposed aircraft to the group with 35 units. There are also 21 A330-200s in operation as well as nine A350-900s, according to the data.
The Chinese carriers also operate 30 787-9s and 10 787-8s, Fleet Tracker shows.
Embraer models are also exposed. The data shows 79 aircraft, including 50 E190s and 29 E195s.
As well as Hainan Airlines, HNA Group has control of 13 further airlines with a global fleet of an estimated 650 aircraft in operations.
HNA Group owns HNA Aviation, which is affiliated with multiple airlines in China: Air Chang’an, Beijing Capital Airlines, Fuzhou Airlines, Grand China Air, GX Airlines, Hainan Airlines, Lucky Air, Suparna Airlines, Tianjin Airlines, Urumqi Air and West Air.
The top three leasing companies exposed to HNA include GECAS with 42 units, following by Bocomm Leasing with and Avolon.
Orix Aviation bought a 30% stake in Avolon in 2018 for $2.2 billion, while HNA's Shenzhen-listed unit Bohai Leasing retained the remaining 70%.
Chinese leasing companies represent 27% of the group of airlines total exposure, according to Fleet Tracker. Other lessors account for 25% of the fleet while the remaining of the fleet is under financial institution financing or owned by carriers.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Phasellus ultrices urna eu consequat pulvinar. Suspendisse malesuada scelerisque iaculis. Cras ut facilisis arcu, posuere efficitur nisi. Fusce dictum tortor ac nibh rhoncus auctor. Praesent nunc felis, elementum vel orci quis, sodales tincidunt nisi. Vestibulum vestibulum vel erat quis feugiat. Nam nec pulvinar velit. Nunc feugiat felis lacus, non condimentum urna interdum vitae. In laoreet hendrerit commodo. Sed diam arcu, tincidunt quis augue ac, venenatis consequat dui. Quisque maximus venenatis erat, sed malesuada quam malesuada at. Aenean non quam a ex vulputate laoreet. Praesent eget neque convallis, rhoncus lorem a, venenatis metus. Maecenas sed malesuada purus.
Integer vel neque vel odio tempor laoreet. Praesent vel malesuada dolor, sit amet aliquam augue. Cras magna tortor, ullamcorper nec tristique ac, accumsan quis metus. Integer in magna sit amet leo vulputate vulputate. In pretium quam libero. Cras a pulvinar arcu, et rutrum orci. Proin euismod, justo quis scelerisque porttitor, purus odio dignissim ex, eu rhoncus lorem dolor sit amet mi. Pellentesque in massa vel mauris tempus euismod. Aenean efficitur vestibulum arcu ut elementum. Nam rhoncus ligula vel enim iaculis, quis luctus dui interdum. Nulla erat mi, lacinia eu orci ut, hendrerit fermentum lorem. Sed non gravida quam. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Nulla bibendum erat odio, pharetra lobortis eros blandit a.
In et ultrices ante. Vestibulum consequat libero quis quam tempor, efficitur accumsan lacus sollicitudin. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Phasellus ac est lacus. Quisque in interdum urna, non pulvinar sem. Duis tristique tortor vel urna commodo tincidunt sit amet ut sem. In sapien turpis, porta vitae neque in, varius egestas erat.
Interdum et malesuada fames ac ante ipsum primis in faucibus. Donec quis est vel ante facilisis efficitur. Pellentesque tincidunt odio eget lacinia vestibulum. Aliquam erat volutpat. Ut ac ipsum non nisi convallis eleifend et ornare lectus. Pellentesque diam nulla, dapibus quis convallis sed, posuere at urna. Proin tincidunt tincidunt nibh, id molestie est. Integer iaculis, leo sit amet pulvinar pellentesque, tellus elit vehicula ipsum, eget vulputate dui tortor vitae sem. Proin rhoncus venenatis tellus, vitae blandit ipsum malesuada sed. Morbi gravida magna hendrerit faucibus imperdiet. Ut bibendum a massa at efficitur. Donec egestas urna urna, sit amet mattis erat fringilla sit amet. Integer scelerisque enim sed odio semper molestie. Sed tincidunt malesuada nulla a fringilla. Nullam suscipit, justo nec facilisis efficitur, arcu mauris finibus lorem, ut egestas mi purus nec neque. Nunc nec euismod est, ac egestas neque.
Vivamus sit amet pretium quam, vitae fringilla dolor. In nec ligula arcu. Fusce a tortor leo. Sed blandit leo quis turpis sodales, eget tincidunt tortor ultrices. Fusce scelerisque eros quis quam vestibulum tempus. Praesent sodales aliquam nibh vel fermentum. Quisque vel diam sit amet sem convallis interdum. Proin ac velit molestie, malesuada tellus vitae, tempus est. Sed facilisis ut enim ac pretium. Mauris scelerisque fermentum risus, nec ultricies enim finibus vel. Aenean sem enim, dictum mollis aliquet nec, consequat nec nisl. Duis aliquam a lectus vitae ornare.