HNA Group to invest US$450m in Azul

China-based HNA Group – the parent of Hainan Airlines – has committed to purchasing a 23.7% stake in Azul Brazilian Airlines (Azul) at an agreed price of US$450 million as part of its continued aggressive plan to acquire aviation assets across the globe. That commitment has seen HNA receive authorization from the European commission to purchase a 100% stake in Swissport.
David Neeleman, the CEO of Azul, has made a point of acknowledging that HNA is making a major investment in the Brazilian market as Brazil’s economy struggles, while HNA sees an investment in Azul as “a solid investment with high growth potential.” Neeleman also confirmed that “The investment of $450 million, considering Brazil’s current macroeconomic situation, demonstrates that we have a winning business model and that the HNA Group, as a large investor, has absolute confidence in Azul’s team.”
According to the HNA Chairman, Adam Tan, “HNA Group is committed to expanding in the airline industry through strategic investments in companies with strong market positions and excellent management teams. We are pleased to partner with Azul in order to bring more choice and convenience to our customers traveling to and from Brazil.”
According to Azul and HNA, the investment “will result in commercial agreements, joint negotiation efforts, and adjustments in aircraft allocation” which “also enables [Azul’s] entry into the Asian market.”
Azul, which was founded by Neeleman in 2008, only flew domestic routes until late in 2014, before launching services to the US, while at the end of 2014, the airline signed a purchase agreement for 35 Airbus A320neos with the intention of leasing another 28 A320neos.
HNA joins United Airlines as an investor in Azul after the US airline acquired a 5% stake in Azul for US$100 million.