HNA Group, which was one of China’s most aggressively acquisitive companies until mounting debts forced it to abandon its global ambitions, was effectively taken over by the Hainan provincial government, making it one of the first major corporate victims of the coronavirus epidemic. Blaming the virus, which has hit the conglomerate’s core airline business, HNA said in a Saturday statement that Hainan government officials were called in to “effectively defuse risks and safeguard the interests of all parties.” Officials from the Civil Aviation Administration of China as well as state-owned China Development Bank Corp., one of HNA’s biggest creditors, are among the members of a new working group. HNA netted assets ranging from prime New York real estate, a big stake in Deutsche Bank, golf courses and hotel chain Hilton Worldwide. But no sooner had HNA built its global empire than it was forced to dismantle it to repay debts that reached $98b by 2018. Through those divestments HNA retreated to its original core aviation business as operator of Hainan Airlines and several subsidiaries, including Hong Kong Airlines. In different times, Hainan Airlines could have been the cash cow that stabilized the group, but the coronavirus epidemic has destroyed those hopes by crippling China’s aviation sector. <br/>
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Indonesia's Lion Air has deferred plans for an IPO due to a sharp fall in global stock markets, people close to the matter said Friday, as the spreading coronavirus outbreak sparks worries of a global pandemic. A decision on the up to US$500m IPO of one of Asia's largest budget airlines was expected by the end of this month after banks completed investor presentations in global financial centres earlier this month. Two people said Lion Air, which was set to launch the IPO as early as next month, would consider a float only when markets stabilised. Lion Air had no immediate comment. The carrier has toyed with an IPO for about five years.<br/>
Jeju Air said Monday it would acquire a 51% stake in competitor Eastar Jet for $45.49m, a lower price than previously announced. The acquisition is the latest case of restructuring in South Korea's aviation industry, which is suffering losses from low travel demand due the coronavirus epidemic and a diplomatic feud between South Korea and Japan last year. The final acquisition price is lower than a preliminary deal price of about 69.5b won Jeju Air reported in a December regulatory filing, which was subject to change after due diligence. "The management is well aware that there is concern among our employees about the Eastar Jet acquisition," Jeju Air CEO Lee Seok-joo said in a message to employees on Monday. "However, the domestic airline industry, which has a structural problem of oversupply, will soon have to restructure... If it's unavoidable, we believe it's best to make a preemptive move."<br/>
Dubai's Emirates Group has seen a "measurable slowdown" in business due to the coronavirus outbreak and has asked staff to take paid and unpaid leave, according to an internal email. Emirates Group, a state-owned holding company that counts Emirates airline among its assets, had more than 100,000 employees, including more than 21,000 cabin crew and 4,000 pilots, at end-March 2019, the end of its last financial year. "A particular challenge for us right now is dealing with the impact of the COVID-19," the email to staff said. "We've seen a measurable slowdown in business across our brands, and a need for flexibility in the way we work." The email asked staff who have "accrued a significant balance of annual leave" to consider taking paid leave. It also said the company was offering unpaid leave to employees in non-operational roles and may offer it to operational staff. "In all cases, we strongly encourage you to take up this opportunity if you have the support and approval of your line manager," the email said.<br/>
El Al is looking to take cost-saving measures after predicting a deepening financial impact on its operations from the coronavirus outbreak. El Al is forecasting a $50-70m cut in its revenues for the first four months of this year, January-April. This includes a reduction of $40-50m for the airline’s Q1 – a substantial increase from the $30m it had estimated in mid-February. El Al’s Q1 revenues in 2019 amounted to $429m, with net losses of $55m. It says it is taking steps to offset the decline and is estimating a $25-45 effect on its results for January-April 2020, including $15-30m in Q1. The airline says it has been reviewing services to the Asia-Pacific region, to match capacity with demand, suspending flights to Beijing and Hong Kong and adjusting operations to Bangkok, following guidelines from the Israeli health ministry.<br/>
Bangkok Airways boosted operating profit 18% to Bt1.68b ($53.2m) last year, despite a decline in revenue from the passenger segment. Revenue rose 2.4% to Bt28.6b. However, passenger revenue fell 6.9% to nearly Bt18.9b, which the carrier attributed to a strengthening of the Thai baht against major currencies, a 1.6% decline in overall passenger numbers to 5.86m, and strong competition. Net profit climbed 41% to nearly Bt351m. Passenger load factor declined marginally to 68.1%, as increases in the domestic figure could not compensate a fall in the international one. Passenger yield fell 4.2%. Traffic was down 3.1%, as capacity was cut 2.4%. Unit costs including fuel edged up 2.6% and was up 4% ex-fuel. The carrier began a Bangkok-Cam Ranh services last year, as well as flights linking Chiang Mai with Krabi and Luang Prabang. But it suspended services to Phuket and Hanoi from Chiang Mai.<br/>
AirAsia X is offering unlimited international flights for a year for just 499 ringgit ($A181) as the coronavirus hits passenger numbers. Passengers will be able to fly from the airline's home base in Malaysia to Australia, Japan, China, India and South Korea as many times as they like. The bad news is the deal is not available to Australians, only to Malaysia-based members of the airlines' BIG loyalty scheme. The AirAsia Unlimited Pass went on sale Saturday and will only be available until March 7. Among the various terms and conditions, passengers will still have to pay taxes, airport fees and charges. They will be able to use the pass until March 2, 2021. "This is unprecedented," said AirAsia X Malaysia CEO Benyamin Ismail. "However, AirAsia has always been known as the disruptor and we want to restore traveller's confidence amid the current sentiment towards flying." Meanwhile, AirAsia X said it will defer delivery of 78 Airbus A330neo planes and consider other changes to reduce its fleet, as the coronavirus outbreak adds pressure on the loss-making carrier. The airline cancelled 600 flights for March, according to an investor presentation published after it reported a higher quarterly net loss. AirAsia X flagged lower forward bookings and pressure on fares in the presentation.<br/>