Companies

HNA goes on aircraft spending spree

By Wang Zhuoqiong (China Daily)
Updated: 2011-03-09 10:51

A Hainan Airlines Co Ltd aircraft takes off from Sanya, Hainan province. HNA Group Co Ltd, China's fourth-largest airline group and parent of Hainan Airlines and Hong Kong Airlines, is increasing its tally of business jets to 35 by purchasing four G555 aircraft and one G450 from Gulfstream, and five 7S planes from Dassault.?[Photo /?China Daily]

HONG KONG - HNA Group Co Ltd, China's fourth-largest airline group and parent of Hainan Airlines Co Ltd and Hong Kong Airlines, has ordered a total of 48 aircraft from Boeing Co, Dassault Falcon Jet Corp and Gulfstream Aerospace Corporation.

Tuesday's spending spree came as the company looks to expand its fleet and satisfy rising demand in both passenger and cargo services.

"We have been waiting for the 787 for a long time, and our order for 30 Dreamliners shows our confidence in this aircraft," said Tan Xiangdong, board director of HNA Group and executive chairman of HNA Industrial Holding Co Ltd, at the Asian Aerospace Exhibition in Hong Kong on Tuesday.

The group's Memorandum of Understanding with Boeing is for 30 787-9 Dreamliners, six 777 freighters, and two 787-8 VIP jets for Hong Kong Airlines.

HNA said the purchases will extend its international routes to Canada, the United States and France and improve its cargo services. In addition, HNA is increasing its tally of business jets to 35 by purchasing four G555 aircraft and one G450 from Gulfstream, and five 7S planes from Dassault.

Speaking about the booming aviation business, Tan said, "Just as people have different tastes in cars, affluent Chinese customers have developed an interest in a greater variety of business jets. We are looking forward to accommodating and providing the best service to our customers."

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There had been speculations that the HNA might be interested in placing an order for the Airbus A380, but Tan said the two sides could not reach an agreement over price. Airbus declined to comment.

Meanwhile, Air China has purchased five of Boeing's 747-8 Intercontinental jetliners to upgrade its existing fleet, said He Li, vice-president of Air China. The deal is worth $1.5 billion according to the catalog price.

Air China is the first Chinese carrier to buy the passenger version of the fuel-efficient aircraft. "The new, high capacity Boeing 747-8 Intercontinental will deliver exceptional economies of scale and a great flying experience to our customers," said He.

Marlin Dailey, vice-president of sales and marketing at Boeing Commercial Airplanes, said, "The technologically advanced 747-8 Intercontinental will deliver improved operating economies of scale, efficiency and environmental performance in support of Air China's continued growth."