HNA Group has signed an equity sale agreement wherein Chongqing Yufu Assets Operation & Management Group Co. will assume shareholder control of West Air (China) (PN, Chongqing). Yufu Group is an equity investment specialist wholly-owned by the Chongqing State-owned Assets Supervision and Administration Commission.
A press statement said that under the agreement signed in Chongqing on December 2, Yufu Group or one of its designated enterprises, will control at least 70% of West Air. HNA, presumably through Hainan Airlines Holdings (HAH), will remain as a minority shareholder (stake not specified) and will oversee the airline's management and day-to-day operations. The agreement mirrors those signed for HAH's Urumqi Air, Capital Airlines (China), and GX Airlines entities.
Under the airline's current equity structure, Yufu Group holds shares albeit indirectly through an affiliated subsidiary. Recent shareholder records indicate HAH currently owns a 28.43% stake in West Air while other shareholders include Haihang Aviation Technology Co., HNA Aviation (Hong Kong) Technics Holding Co., Hainan Tianyu Flight Training Company Limited (held by the Haihang Aviation Group Co.), the Western Airlines Company Limited which is co-owned by the Tianjin Chuangxin Investment Partnership (LP) and the Chongqing Western Airlines Holding Company which is co-owned by the HNA Group (Southwest Headquarters) Co.
Founded in 2007, West Air is a low-cost carrier operating a fleet of four A319-100s, twenty-five A320ceo, and six A320neo on flights to 46 cities across China as well as in Japan and Thailand. It employs over 2,600 staff at bases in Chongqing and Zhengzhou and has assets worth CNY12.5 billion yuan (USD1.78 billion).
