Concern mounts over HNA debt

Rupert Reid Published: 2017-12-09 19:30:41
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There's concern amongst some HNA group partners as financing costs begin to rise.

That's according to specialist publication TRT World, who report that some airlines owned by HNA group have ceased payments to aircraft lessors over the last two months.

A passenger plane of Hainan Airlines. [File Photo: VCG]

A passenger plane of Hainan Airlines. [File Photo: VCG]

HNA, based in Hainan, is one of the largest travel and investment groups in the world.

Its airlines include Hainan, Beijing Capital and Hong Kong Airlines, although TRT does not state which airlines have apparently ceased some lease payments.

The firm also holds investments in a multitude of infrastructure and travel firms including, in Europe, NH Hotels, Swissport, Gate Gourmet and aircraft lessor Avolon.

Many of these investments have been funded by taking on some $50 billion USD of debt, which is starting to cause concern as financing costs rise.

Specialist credit rating agency Standard and Poor recently cut the rating of HNA as a result of this, although HNA has reassured its partners that it is committed to meeting all of its financial obligations.

In November, we reported that HNA Group had sold some its shares in Spain's NH Hotels as part of a sale and repurchase deal.

The Chinese travel and property group is currently the largest single shareholder in NH, one of Spain's leading hotel chains.

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