This is obviously partially due to wanting to raise lots of capital and Chinese government restrictions, but HNA’s aviation strategy seems a bit ridiculous. They currently own (or partially own) the following airlines:
Hainan Airlines
Tianjin Airlines
Grand China Air
Air Changan
Beijing Capital Airlines
Fuzhou Airlines
Lucky Air
Urumqi Airlines
GX Airlines
Virgin Australia
MyCargo Airlines
Aigle Azur
Comair
Azul
TAP Airlines
Shouldn’t they, at the very least, try to streamline their offering somewhat? Or present a more coherent product to customers?
With the recent accidental death of HNA Chairman Chen Fang in Paris, I would expect some considerable changes in management and strategy from within the group. And as @traveller14 succinctly notes, the Chinese Mainland Government may enforce some further unforeseen restrictions based on capital raising. Hence the recent HNA divestment in a certain large US-based hotel chain.
Whether HNA has 'too many airlines' in its portfolio is an interesting question. The last 6 in the list are shareholdings in airlines outside of China. Holding such shares can be either highly clever in terms of feed to your own product .. or the reverse - highly problematic, as we've recently seen with Etihad's failed investment strategy. And, in reality, you won't get to 're-organise / restructure' or merge these foreign carriers in any meaningful way. National and international rights ensure that.
However, within mainland China, each of HNA's carrier brands seek to fulfill a different strategic role, based on marketing knowledge and need. These include full-service legacy, LCC, Low-Fare, the only privately owned commercially operated (Lucky) and that is before you consider the split between international and domestic. Also, when you are dealing with secondary Chinese cities that have populations over 8-10 million or more people as a captive market, who is to say whether HNA has 'too many'?
If you were to look at QF's ownership, many think of it as one .. but QF also owns JQ in Australia, owns a share of Jetstar (Japan), Jetstar Pacific (Vietnam USA etc) and Jetstar Asia (Singapore). Let's not forget QF's 46% shareholding in Fiji Airways as well as Eastern Australia domestic regional. That quite a portfolio as well - with a lot smaller market.
This is obviously partially due to wanting to raise lots of capital and Chinese government restrictions, but HNA’s aviation strategy seems a bit ridiculous. They currently own (or partially own) the following airlines:
Hainan Airlines
Tianjin Airlines
Grand China Air
Air Changan
Beijing Capital Airlines
Fuzhou Airlines
Lucky Air
Urumqi Airlines
GX Airlines
Virgin Australia
MyCargo Airlines
Aigle Azur
Comair
Azul
TAP Airlines
Shouldn’t they, at the very least, try to streamline their offering somewhat? Or present a more coherent product to customers?
Well, you missed Hong Kong Airlines and Hong Kong Express.
This is obviously partially due to wanting to raise lots of capital and Chinese government restrictions, but HNA’s aviation strategy seems a bit ridiculous. They currently own (or partially own) the following airlines:
Hainan Airlines
Tianjin Airlines
Grand China Air
Air Changan
Beijing Capital Airlines
Fuzhou Airlines
Lucky Air
Urumqi Airlines
GX Airlines
Virgin Australia
MyCargo Airlines
Aigle Azur
Comair
Azul
TAP Airlines
Shouldn’t they, at the very least, try to streamline their offering somewhat? Or present a more coherent product to customers?
Well, you missed Hong Kong Airlines and Hong Kong Express.
I included them afterwards. They also own Africa World Airlines and West Air as well.
Hi Guest, join in the discussion on
HNA Group - Too many airlines?
popsicles
popsicles
Member since 17 Jun 2018
Total posts 8
This is obviously partially due to wanting to raise lots of capital and Chinese government restrictions, but HNA’s aviation strategy seems a bit ridiculous. They currently own (or partially own) the following airlines:
Traveller14
Traveller14
Member since 17 Sep 2015
Total posts 73
Wow - amazing.
popsicles
popsicles
Member since 17 Jun 2018
Total posts 8
I tried updating but it hasn’t worked - they also own Suparna Airlines, Hong Kong Airlines and HK Express. Likely to have missed more.
kimshep
kimshep
Qantas - Qantas Frequent Flyer
Member since 11 Oct 2014
Total posts 412
With the recent accidental death of HNA Chairman Chen Fang in Paris, I would expect some considerable changes in management and strategy from within the group. And as @traveller14 succinctly notes, the Chinese Mainland Government may enforce some further unforeseen restrictions based on capital raising. Hence the recent HNA divestment in a certain large US-based hotel chain.
Whether HNA has 'too many airlines' in its portfolio is an interesting question. The last 6 in the list are shareholdings in airlines outside of China. Holding such shares can be either highly clever in terms of feed to your own product .. or the reverse - highly problematic, as we've recently seen with Etihad's failed investment strategy. And, in reality, you won't get to 're-organise / restructure' or merge these foreign carriers in any meaningful way. National and international rights ensure that.
However, within mainland China, each of HNA's carrier brands seek to fulfill a different strategic role, based on marketing knowledge and need. These include full-service legacy, LCC, Low-Fare, the only privately owned commercially operated (Lucky) and that is before you consider the split between international and domestic. Also, when you are dealing with secondary Chinese cities that have populations over 8-10 million or more people as a captive market, who is to say whether HNA has 'too many'?
If you were to look at QF's ownership, many think of it as one .. but QF also owns JQ in Australia, owns a share of Jetstar (Japan), Jetstar Pacific (Vietnam USA etc) and Jetstar Asia (Singapore). Let's not forget QF's 46% shareholding in Fiji Airways as well as Eastern Australia domestic regional. That quite a portfolio as well - with a lot smaller market.
Geoffair
Geoffair
Member since 04 May 2018
Total posts 42
Probably due to government policy and restrictions and l'm sure provinces and cities can subsidise airlines so they have their own airline.
CBR boy
CBR boy
Member since 12 Feb 2015
Total posts 61
Most business matters in China lack transparency.
Pallydou
Pallydou
Cathay Pacific - The Marco Polo Club
Member since 02 Jul 2018
Total posts 22
Well, you missed Hong Kong Airlines and Hong Kong Express.
jch
jch
Virgin Australia - Velocity Rewards
Member since 15 Nov 2017
Total posts 143
At least flying with them is a cheap way to Velocity Platinum
popsicles
popsicles
Member since 17 Jun 2018
Total posts 8
Well, you missed Hong Kong Airlines and Hong Kong Express.
I included them afterwards. They also own Africa World Airlines and West Air as well.