Urumqi Air was established in 2013 by Hainan Airlines and the local government with registered capital of CNY 3 billion (US$ 0.43 billion). It posted a loss of CNY 50 million (US$ 7.26 million) in the first half of 2019. The carrier operates routes that connect 33 cities in mainland China.
Hainan Airlines to sell 40% stake in Urumqi Air to Government of Urumqi
Date
July 11, 2019
Type
M&A Transactions
Subtype
Transaction launched
Countries
China
Subsectors
Airport
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Hainan Airlines Holding, the aviation unit of HNA Group, is to sell a 40% stake in an unprofitable local carrier Urumqi Air to the government of Urumqi, in northwest China. Hainan Airlines has agreed to sell its stake to a financial vehicle controlled by Government of Urumqi. This sell will boost the government's stake in the airline to 70% while the remaining 30% will be held by Hainan Airlines.
Hainan Airlines said the transaction would be of long-term benefit to the local carrier based in Urumqi, the capital of the Xinjiang autonomous region. The sale is part of a major asset-restructuring program involving Hainan Airlines and its embattled parent HNA Group, which was until recently one of the mainland’s most aggressive overseas buyers.
