Debt-shackled HNA Group has revealed that its Hainan Airlines Holding subsidiary will reduce its stake in MRO unit HNA Aviation Technic to 68.07% by selling a 31.93% shareholding in the company for CNY2.5 billion yuan (USD350 million) to Hainan Island Airport Industry Group, another HNA-affiliated company.

On completion, the registered capital of HNA Aviation Technic will increase to CNY3.746 billion (USD524 million), it said in a stock exchange filing on May 27.

The transaction is conducive, the disclosure said, to HNA Aviation Technic accumulating registered capital and easing its asset-liability ratio.

It is also conducive, it added, to the MRO specialist's "full use of the advantages" of Haikou Airport, Hainan Airlines' home base, in terms of management, construction, and other airport activities.

Hainan Airlines Holding will also fully divest Hainan Tianyu Flight Training Company Limited to another HNA company, HNA Infrastructure Group, with the transaction valued at CNY749 billion (USD105 million).

The move will allow it to focus on its core business of passenger and cargo operations and optimise its allocation of resources, it said.

The two transactions are pending internal and shareholder approvals.