China's cash-strapped HNA secures restructuring deal for West Air

Cash-strapped Chinese conglomerate HNA Group said on Monday it has agreed a deal to restructure its low-cost carrier West Air with a Chongqing-based asset management firm. Chongqing Yufu Asset Management Group and its affiliates will together hold at least 70% stake in West Air, becoming the biggest shareholder, HNA said. West Air, established in 2007, operates about 160 domestic and international routes with a fleet of 35 airplanes. It has been directly controlled by HNA, whose affiliates also own struggling Hong Kong Airlines as well as Hainan Airlines. Hong Kong Airlines was ordered by Hong Kong’s air transport regulator on Monday to shore up its financial position by Dec. 7 or risk the suspension or loss of its license. Hainan Airlines, which has seen declining profits, said in a Shanghai stock exchange filing on Monday that it will seek 4b yuan ($568m) in loans from eight banks led by China Development Bank. The funds will be used to cover the costs of fuel, maintenance charges, staff salaries and operational expenses, it said in the filing.<br/>