Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
China's Hainan Air Eyes U.S. Airline Acquisition  
User currently offlineFlying-Tiger From Germany, joined Aug 1999, 4161 posts, RR: 36
Posted (12 years 3 months 4 weeks 1 day 22 hours ago) and read 1164 times:

SHANGHAI, April 26 (Reuters) - Hainan Airlines, one of China's most aggressively expanding carriers, hopes to take over an airline in the United States to boost its global standing, a Hainan Air official said on Friday.

The regional Chinese carrier, which reported a sharp 39 percent drop in net profit last year mainly due to an acquisition spree, has approached a few U.S. airliners though it has made no concrete plans, the official said.

[snip snap]

"We are considering to buy a U.S. airline because the (U.S.) aviation industry is not doing quite well now, which might be a good time for an acquisition," the Hainan Air official told Reuters.

"But this is only something very preliminary and nothing has been fixed at all," said the official who declined to be identified.

[snip snap]

Hainan Air has announced a plan to expand its fleet by 21 planes this year and list American Depositary Receipts in New York to help fund expansion.

The China Business Times said on Friday Hainan Air planned to set up a private fund in the United States to help its development over the next 10 years. It gave no details.

Hainan Air has been keenly scouring for acquisitions to build its network after the small regional player was left out in the cold by the aviation regulator's plan to merge 10 other carriers into three giant, internationally competitive groups.

The airline, based in the tropical southern island of Hainan, was also among a slew of small carriers that would be squeezed out of lucrative flying routes between Shanghai, Beijing and Guangzhou this year, analysts said.

Hainan Air has said it was forming a new Cambodian flag carrier with the Phnom Penh government, a move analysts saw as aimed at tapping the potentially lucrative Southeast Asian regional air travel market.

******************************************
Who is the likely one? Anyone able to split those 21 deliveries planned for this year?

Regards
Flying-Tiger
http://fly.to/rorders


Flown: A319/320/321,A332/3,A380,AT4,AT7,B732/3/4/5/7/8,B742/4,B762/763,B772,CR2,CR7,ER4,E70,E75,F50/70,M11,L15,S20
3 replies: All unread, jump to last
 
User currently offlineAndreas From Germany, joined Oct 2001, 6104 posts, RR: 31
Reply 1, posted (12 years 3 months 4 weeks 1 day 21 hours ago) and read 1137 times:

Cool idea...and what exactly would they hope to acieve by buying a regional carrier in the US, that carries people around about 10,000 miles away from Hainan home markets??
Nothing, except another sharp drop in earnings resulting from immense losses on the investment, and a very hard time integrating a US carrier into a regional Chinese management network.
Nice to see, that people are not ready to learn from other people's mistakes!!

Regards
Andreas



I know it's only VfB but I like it!
User currently offlineSomeone Else From United States of America, joined Sep 2000, 4 posts, RR: 0
Reply 2, posted (12 years 3 months 4 weeks 1 day 18 hours ago) and read 1100 times:

Maybe it'll be called FOBair?

User currently offlineSearpqx From Netherlands, joined Jun 2000, 4344 posts, RR: 10
Reply 3, posted (12 years 3 months 4 weeks 1 day 17 hours ago) and read 1078 times:

They can eye an acquisition all they want, but that's the extent of it. Federal law caps foreign control of a U.S. airline at 25%. I believe non-controlling/non-voting ownership can go above that, as was the case w/ KLM and NW, but someone would have to check me there. And, IMHO, considering the state of Sino - US relations right now, it would be a cold day in hades before congress voted to change the ownership laws.

Duane



"The two most common elements in the universe are Hydrogen and stupidity"
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
China Eastern, Air China Or Hainan Airlines? posted Wed Apr 7 2004 18:43:28 by Kurt
Stop Complaining, China Tells Air Passengers posted Sun Dec 24 2006 02:20:24 by Antskip
China Airlines Air Route FRA-TPE posted Sat Dec 3 2005 15:05:37 by Cityjet
JOB Air? An Airline From Italy? posted Fri Oct 28 2005 18:17:10 by TS-IOR
China Eastern "Very Substantial Acquisition"? posted Mon Aug 8 2005 12:20:43 by Lumberton
Bangkok Air Eyes 787/A350 posted Thu Jul 14 2005 20:47:10 by CXoneWorld
-China Southern Air Says To Buy 45 Boeing Aircraft posted Wed May 11 2005 01:56:34 by BoeingBus
Was Tower Air A Great Airline? posted Wed Apr 6 2005 18:06:37 by Alberchico
China's Shanghai Air To Buy 787s posted Tue Mar 22 2005 15:08:38 by YUL332LX
China Cargo/Air China Cargo/China Airlines Cargo? posted Mon Jan 3 2005 23:50:10 by Mozart