Hainan Airlines (HU, Haikou) has announced it has formally completed its acquisition of a 48.21% stake in Tianjin Airlines (GS, Tianjin).
Hainan Airlines said in a filing to the Shanghai Stock Exchange last week the transaction dates back to a Board of Directors' resolution in early/mid-2015. Then, it was agreed to acquire a 48.21% stake in Tianjin Aviation Co., Ltd. from Tianhang Holding Co., Ltd. for CNY555.37 million while boosting Tianjin Airlines' capital by CNY244.63 million.
With all requisite China Securities Regulatory Commission (CSRC) permissions obtained and the purchase now complete, Hainan Airlines now controls 87.3% of Tianjin Airlines.
It is recalled that in late 2015, Hainan Airlines' parent, the HNA Group, announced plans to consolidate control of its Tianjin Airlines, West Air (China), Capital Airlines (China), and Hong Kong Airlines units under Hainan Airlines in order to boost their profitability, boardroom excellence, and avoid horizontal competition among its subsidiaries.
Tianjin Airlines currently operates a fleet of twenty-three A320-200s, two A330-200s, forty E190s, nine E195s, and fourteen E145s on scheduled passenger flights to 109 destinations across China, Cambodia, South Korea, Japan, Thailand, the United Kingdom, and New Zealand.
