Hainan Airlines plans to buy aviation assets worth $1.6b via share issue

Hainan Airlines plans to acquire aviation assets valued at 10.48b yuan ($1.64b) in five firms to boost its route network and competitive edge, it said Friday. The carrier, affiliated with embattled HNA Group, said it would issue shares to up to 10 investors, including Singapore’s Temasek Fullerton Alpha Pte Ltd, to raise up to 7b yuan to fund aircraft purchases and six other projects, such as engine maintenance and pilot training. Hainan Airlines hopes to upgrade its flight network and develop its aviation expertise with the acquisitions. “With the acquisitions, the airline will be able to expand the routes, strengthen development in aviation maintenance, flight training and other services,” the airline said in a filing to the Shanghai stock exchange. Hainan Airlines said the acquisition would result in an ownership change in the company, which is now controlled by a Chinese provincial regulator.<br/>