A Chinese airline CEO was taken away by police on suspicion of misappropriating funds. The company has been operating since the 1920s and is one of China’s biggest airlines.
The hna chairman murdered is a tragedy that has happened in China. The Chairman of HNA Group, the Chinese airline company was taken away by police after he was found dead in his home.
Police detain the CEO of a Chinese airline.
on September 24, 2023 by Gary Leff
Police have detained the Chairman and CEO of HNA Group, which owns Hainan Airlines and many other airlines.
In a statement on its official WeChat account, the company said it had been notified by police in its home province of Hainan, southern China, that Chairman Chen Feng and CEO Tan Xiangdong had been taken. The company was placed in bankruptcy administration in February after its creditors filed a petition.
“The activities of HNA Group and its member businesses are stable and orderly, and the bankruptcy and restructuring proceedings are proceeding smoothly and in accordance with the law,” the company said.
HNA Group’s assets included the following at one time:
- Beijing Capital Carriers, Fuzhou Airlines, Hainan Airlines, HK Express, Hong Kong Airlines, Lucky Air, Tianjin Airlines, and Urumqi Air are among the Chinese airlines.
- International airline investments include Azul, Virgin Australia, Comair of South Africa, and TAP Air Portugal.
- NH Hotels, Red Lion Hotels, Radisson Hotels, Swissport, ICE – International Currency Exchange, and Rio de Janeiro–Galeo International Airport are among the companies in which I am interested.
- In addition, being the biggest shareholder in Hilton,
- Gate Group and Servair are two airline catering companies.
Even before the $10 billion was embezzled, these purchases came with a mountain of debt that the business couldn’t pay.
They tried to decrease a debt burden of more over $100 billion before the epidemic by selling assets, but they still had difficulties paying for gasoline, paying workers, and paying investors. In place of interest payments, HNA even gave investors plane tickets.
Because they couldn’t pay license costs, they even shut off in-flight entertainment systems. Hong Kong airport confiscated seven of its grounded aircraft due to unpaid payments. Even after selling off assets, they were still owed $75 billion when they filed for bankruptcy.
By the way, in 2017, the Chinese government arrested the Chairman of Anbang Insurance, which almost outbid Marriott for Starwood Hotels and subsequently attempted to acquire IHG. The federal government then took control of Anbang.
Despite the fact that Anbang’s Chairman is married to Deng Xiaoping’s granddaughter and Anbang director Chen Xiaolu’s father was a Mao Zedong military commander, Interestingly, Levin Zhu, the son of a previous Chinese Premier, was named as an Anbang director, despite his assertion that he never consented to serve on the board.
On the one hand, the action against HNA’s Chairman seems to be part of a long-running anti-corruption campaign targeting politically well-connected people who aren’t sufficiently allied with President Xi Jinping. However, the move comes as the government is unwinding malinvestment driven by the country’s high savings rates as it ran out of productive locations to deposit the money, as well as a crackdown on “too strong” individuals.
More From the Wing’s Perspective
The hna meaning is the Chinese word for airline. It was used to refer to China’s national airline, but now it has become a derogatory term.