(Yicai Global) June 12 -- The government of China's southwestern Guangxi Zhuang Autonomous Region plans to take a majority stake in Guangxi Beibu Gulf Airlines, a subsidiary of HNA Group, via equity restructuring, the parent announced yesterday.
Guangxi Beibu Gulf Investment Group, a wholly-owned unit of the State-owned Assets Supervision and Administration Commission of the State Council, Guangxi Airport Management Group and Haikou, Hainan province-based HNA have penned a framework agreement, per which the three will hold a respective 71.2 percent, 4.8 percent and 24 percent stake in GX Airlines after completion of the restructuring, the announcement said.
The three will also negotiate and ink a post-restructuring operation and management agreement for the air carrier.
HNA, which incurred a net loss of CNY4.9 billion (USD710 million) last year and was beset by liquidity difficulties, intensified its asset disposals to achieve capital back-flow.
HNA unit Tianjin Airlines now holds a 70 percent share of Nanning, Guangxi province-based GX Airlines, and Beibu Gulf Investment holds the rest. GX Airlines has a fleet of 28 aircraft that plies 60 domestic and international routes.
GX Airlines plans to open international routes to such Southeast Asian cities as Hanoi, Jakarta and Manila in the next two years.
Editors: Zhang Yushuo, Ben Armour