"A cluster of undelivered A330 jets can be seen parked at Airbus’ delivery center near Toulouse, France, where the European plane maker’s manufacturing facility is situated and where the new A220 jet was just revealed this week. Airbus faces a logjam of these undelivered aircraft, worth over $1 billion, for airlines affiliated to China’s debt-ridden HNA Group, following a deadlock over late payments. And the Chinese conglomerate is not the only one struggling here.
HNA’s financial woes
According to industry sources, subsidiary companies of the HNA Group have delayed payments for months and Airbus eventually decided to withdraw the deliveries. “After six months of talks, Airbus took the decision to withdraw the planes as it does not want to play the financier,” one source told Reuters on July 11, 2018. Airbus and HNA have not released any statement regarding the matter.
Other financial sources told the news agency earlier in 2018 that some HNA affiliated airlines were delaying aircraft lease payments to lessors. Some of the sources reportedly said that HNA’s flagship carrier, Hainan Airlines, and smaller ones, such as Lucky Air and Beijing Capital Airlines, had missed payments, while Tianjin Airlines was seeking to extend the term for payments due this year.
The debt that Hainan Airlines’ parent company HNA Group is dealing with, is estimated to be $94 billion. The group has initiated a bunch of asset sell-offs and IPOs to raise liquidity to manage its debts, according to the Chinese Jing Travel news site. But aside of aircraft payment delays and debts, the HNA Group has also fallen behind in its payments for…fuel. Back in March 2018, it was revealed that the group owed the state-owned China National Aviation Fuel Group $476 million in fuel bills."https://www.aerotime.aero/ruta.burbaite/21542-hna-unable-to-pay-a330-order-worth-1b-costing-airbus-millions?utm_source=newsletter&utm_medium=email&utm_campaign=hna_unable_to_pay_a330_order_worth_1b_costing_airbus_millions_aerotime&utm_term=2018-07-13