Air China group has held talks to buy HNA's airlines

HNA Group held preliminary talks to sell its core airline assets to one of China’s top state-run carriers, people familiar with the matter said, a sign little has been off the table as the sprawling conglomerate seeks to pay down its hefty debt load. The talks, which haven’t been previously reported, started late last year, the people said, asking not to be identified discussing a private matter. The state-run parent of Air China held at least two high-level meetings to buy HNA assets including flagship Hainan Airlines, they said. But discussions have cooled in the past few months and it’s unclear whether they will progress because of numerous hurdles, according to the people. HNA, which declined to comment, subsequently denied any such discussions occurred. "Hainan Airlines is not for sale, full stop, and never was, and even the general conversations in question about other airline assets under Hainan Airlines Holding took place months ago,” HNA said. Selling Hainan Airlines would have been unthinkable up until a few years ago because the carrier was HNA’s first company and it’s remained the group’s most central business for the past quarter century. But pressure on HNA to deal with its debt, one of the biggest burdens in Asia, has forced it to embark on a massive selloff. The company, based in Hainan island off China’s southern coast, agreed to sell more than $20b in assets this year and more that double that remains on the block.<br/>