A court in China’s Hainan province has approved applications from creditors to place 10 affiliates of Hainan Airlines Holding in bankruptcy reorganisation, including six airlines, a 10 February filing to the Shanghai Stock Exchange shows. The move was reported by Cirium. The airlines are Grand China Air, Air Changan, Lucky Air, Fuzhou Airlines, Urumqi Air and GX Airlines.
Cirium fleet data shows the rulings put 96 leased aircraft at risk as the outcome of the bankruptcy reorganisation is uncertain, although a leasing source who recently spoke to HNA affiliates told Cirium on 9 February that the airlines sought to give assurance that operating lessors’ interests would be protected.
The High People’s Court of Hainan Province ruled to accept creditor Fulaite International Freight Agency’s application for the reorganisation of Grand China Air, which operates a fleet of only three Boeing 737-800s, all managed by Hainan Airlines. All five of the other airlines mentioned in Wednesday’s filing, however, have significant numbers of leased aircraft in their fleets.
The Hainan court also ruled to accept creditor Hebei Zhiyuan General Aviation’s application for the reorganisation of Air Changan. Hebei Zhiyuan General Aviation is a China Aviation Administration of China (CAAC) approved general aviation company that provides services including flight training, as well as industrial, agricultural and forestry operations, Cirium reported.