(Yicai Global) June 14 -- Tianjin Airlines will forgo the right to buy 20 Airbus planes in the latest belt-tightening at a unit of debt-laden Chinese conglomerate HNA Group. It now plans to lease five of the aircraft instead.
The Tianjin-based carrier has decided not to exercise a preemptive right for 20 Airbus A320 planes, parent company Hainan Airlines Holding said in a statement yesterday. The contract was signed with HNA-affiliated aircraft leaser Hong Kong Aviation Capital in 2014.
HKAC should refund the prepayments and other charges that Tianjin Airlines has already paid, the statement added.
HNA Group, the parent of these two units, has interests in aviation, real estate and financial services. It has been selling assets this year to raise cash after a USD50 billion splurge on acquisitions in recent years that sparked a regulatory investigation into its borrowing and ownership structure.
Editor: Emmi Laine