Hainan Airlines sells two Boeing 737-800 planes for US$27.5 million to raise cash, after grounding 737 MAX 8
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Hainan Airlines Group can’t seem to catch a break.
China’s fourth-largest carrier, a unit of one of the country’s largest and most heavily indebted conglomerates, was in the midst of an asset disposal programme – selling everything from Hong Kong land parcels, slashing its Deutsche Bank stake to airliners – when a Boeing 737 MAX 8 operated by Ethiopian Airlines crashed this week.
The tragedy, which killed 157 people on board – including eight Chinese – sparked a worldwide backlash that saw aviation regulators around the world ordering every aircraft of that model to be grounded.
Hainan Airlines, based in Haikou, operates 11 of those Boeing 737 MAX 8 aircraft. With the Civil Aviation Administration of China (CAAC) being the first to order a stop in the aircraft’s flight, the carrier had to redeploy jets from its fleet of 235 planes to continue serving travellers.
On Thursday, Hainan Airlines announced an agreement to sell two Boeing 737-800 planes for US$27.5 million to NGF Genesis Limited to raise cash for its business needs, according to a statement to the Shanghai Stock Exchange.
The sale was “to optimise the structure of the fleet, improve the liability ratio, and make the company more nimble,” the filing said.