Ten affiliates of Chinese travel conglomerate HNA Group will be restructured after a high court moved forward with creditors’ bankruptcy petitions.
A Shanghai Stock Exchange filing confirms the requests were approved by China’s Hainan provincial high court following a failure to repay debts.
The ruling, which covers regional carriers Air Changan, Fuzhou Airlines, Grand China Air, GX Airlines, Lucky Air, and Urumqi Air, could have a significant impact on overall fleet size, according to a Cirium analysis published by FlightGlobal.
Together, the HNA affiliates lease 96 aircraft, ranging from Boeing 737s to Airbus A330s. They also operate a small fleet of Hainan Airlines and Hong Kong Airlines aircraft.
At this point, it is unclear how the bankruptcy will impact HNA flagship companies, including Hainan Airlines and Hong Kong Airlines.
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