HNA Aviation Group, a division of HNA Group, has taken a shareholding of approximately 13 per cent in Virgin Australia Group as part of a strategic commercial alliance between the two companies.
Under the agreement, new direct services between China and Australia will be jointly looked into, as well as greater cooperation in terms of codesharing, loyalty programmes, lounge access and promotions.
According to Virgin Australia, HNA is also committed to increasing its stake in the company over time up to 19.99 per cent.
Further details about the alliance will be made available as they finalise, according to a statement released by Virgin Australia, adding that the alliance is still subject to authorisation by the Australian Competition and Consumer Commission, regulatory approvals from Chinese authorities and other commercial conditions.
Commenting on the move, CEO of Virgin Australia, John Borghetti, said: “The alliance will see us leverage the opportunities offered by China as well as the synergies of HNA’s comprehensive aviation supply chain.
“The Chinese travel market represents Australia’s fastest growing and most valuable inbound travel market, with inbound passengers from China increasing by approximately 18 per cent per year since 2010.”
Airlines operating under the HNA Aviation Group include Hainan Airlines, Tianjin Airlines, Lucky Air and Urumqi Air, among many others.
