Chinese rescue of Virgin Australia up in air amid HNA debt troubles at home, tighter scrutiny on foreign investment
- Rescue plan for Virgin Australia remains in doubt as HNA fights fires at home, Australia reviews foreign investment amid pandemic
- Australian government has final say on Virgin’s revival plan after carrier went into administration proceedings: S&P
China’s three largest carriers, namely Air China, China Southern Airlines, China Eastern Airlines were considering buying stakes in the troubled carrier, Australian media said earlier this month citing anonymous sources.
“It is hard for HNA Group to save itself now, its cash flow is insufficient to sustain its own livelihood, the chance for it to increase overseas investment is extremely low,” said Qi Qi, an associate professor at Guangzhou Civil Aviation College, shrugging off the likelihood of HNA ploughing more money into the stricken Australian carrier.
“HNA Group is under the government management,” he said. “It is not that likely that it would continue to expand in the aviation industry” with the latest round of industry upheaval.
HNA Group did not return calls or immediately reply to emails seeking comment on its position on the potential restructuring plan.
