Hainan Airlines (HU, Haikou) will assume managerial control of Tianjin Airlines (GS, Tianjin), West Air (China) (PN, Chongqing), Capital Airlines (China) (JD, Beijing Daxing International), and Hong Kong Airlines (HX, Hong Kong International) as parent firm HNA Group moves to improve profitability, boardroom excellence, and avoid horizontal competition among its subsidiaries.

According to the minutes of a board meeting earlier this month, the move is the first step in the gradual transfer of ownership in the airlines to Hainan Airlines.

Managerial control will last for a period of three years during which time the airlines will each pay Hainan Airlines CNY1 million (USD156,873) on an annual basis.

In the second phase, Hainan Airlines will assume control of HNA Tourism Group Co., Ltd's 50.4% stake in Capital Airlines, HNA Group's 60% stake in West Air, its 25.29% stake in Hong Kong Airlines' parent HKA Group Holdings Company Ltd, and the 48.22% stake Tianjin Airlines Co., Ltd. owns in Tianjin Airlines itself.