HNA Group has proposed to transfer its 17% stake in West Air to its subsidiary, HNA Group Southwest Headquarters, for CNY518 million. Hainan Airlines Holding, a Fangda Aviation subsidiary that owns 13.9% of West Air, has approved waiving its preemptive right.
The current situation
The board approved the waiver on Sept. 7. Still, the transfer remains subject to shareholder approval, and the other shareholders have not confirmed whether they are also waiving their pre-emptive rights to the shares.
The proposed transfer was filed on Sept. 8, 2026, with the Shanghai Stock Exchange. The transfer is an internal restructuring within Fangda Aviation and Hainan Airlines Holding’s 13.9% stake would remain unchanged.
About West Air and HNA Aviation Group
Founded on March 27, 2007, China’s West Air is a budget airline based in Chongqing, China. It operates out of its main hub at Chongqing Jiangbei International Airport on a scheduled network to domestic and international destinations in East Asia and Southeast Asia. West Air has a fleet size of 50 aircraft and a total of 71 destinations.
Founded on Jan. 19, 2009, HNA Group is an aviation group based in Hainan, China. It was previously the aviation division of the now-defunct HNA Group. It is China’s fourth-largest aviation group. HNA Aviation Group has a large range of subsidiary airlines, including Grand China Air and Capital Airlines.
Hainan Airlines Holding and its proposal to raise the annual guarantee
At the same Sept. 7 board meeting, Hainan Airlines Holding also approved raising its 2026 annual financial guarantee limit for subsidiary companies from CNY9.5 billion to CNY23.1 billion. This is subject to shareholder approval, too.
Hainan Airlines Holding said CNY4 billion of the current guarantee limit had been used by the end of August. The approval of the raised limit would give them CNY19.1 billion more to provide to their subsidiaries.
What are your thoughts on HNA Aviation Group’s share transfer to its subsidiary? Let us know in the comments.
