China's HNA Group to invest $200 million in aviation sector

Chinese aviation firm HNA Group is eyeing to invest around $200 million in Indian aviation industry, said its president Tan Xiangdong.

“We are looking forward to an investment of between $150 to 200 million in the Indian aviation sector only if we get a viable domestic partner,” Xiangdong told PTI.

HNA Group is one of the biggest aviation conglomerates of China owning 16 airline companies with 528 aircrafts operating across the world. The group’s flagship Hainan Airlines is one of the seven airlines awarded five-star rating by Skytrax.

HNA also have interests in shipping, logistics, financial services and hotel business.

With troubles hitting the Indian aviation industries and companies like Kingfisher and Spicejet facing crisis, Xiangdong said the group is very cautious about making investments in this sector of the country.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

He said, “We are keeping a regular tab on the Indian aviation business and are stepping cautiously about making any investments.

“On the other side, we are taking note of the progress made by recently setup Vistara and Air Asia India.”

HNA is also planning to enter travel agency business in India with an investment $50 million.

“We have huge plans for investments in India. We are planning to invest a sum of $50 million in travel agency business and is looking for some good domestic partners,” he added.

He added, “We are in preliminary talks with some companies about this but nothing concrete has happened till now.”

Apart from aviation and travel agency, the group is also mulling options to invest in mid-size hotel business in India.

“We are planning to put our money into developing three star and four star hotels in India. We see a lot of opportunities in this segment here,” he said.

HNA Group is the biggest stake holder of NH Hotels which owns 400 hotels in 28 countries of Europe, America and Africa. The group also owns more than 70 hotels in China.

Xiandong added, “Our target is to build a feasible business enterprise in the country involving local partners.”

Earlier in 2012, HNA Group bidded to buy luxury hotel chain Amanresorts International from DLF for around Rs 2,400 crore, but the sale fell out as HNA said it did not receive any information for the bid result within the period of validity.

PTI