Monday 25 September 2017

Avolon owner seals Frankfurt deal

Domhnal Slattery, chief executive of Avolon
Domhnal Slattery, chief executive of Avolon

Kane Wu

HNA Group, the Chinese owner of Irish aircraft leasing giant Avolon, has closed a deal to buy a majority stake in Frankfurt Hahn airport.

The owner of Hainan Airlines is also preparing to bid for a concession to operate Belgrade's airport, a company executive said. HNA is undeterred by Beijing's sharpened scrutiny of overseas acquisitions, which has clouded some of the Chinese conglomerate's other pending deals.

HNA is leading a consortium bidding for the 25-year concession to operate Nikola Tesla airport, the biggest in the Balkan region.

The next round of bids for the deal in Serbia are due in October, Wang Hexin, vice president of HNA Airport Group, said in an interview, as the group also announced the closure of its Frankfurt Hahn acquisition. "HNA is actively carrying out the country's Belt and Road initiative with overseas airports construction and investments," Mr Wang said referring to a policy aimed at boosting Chinese transport ties to the rest of the world.

HNA bought an 82.5pc stake in Hahn airport for €15.1m from the federal state of Rhineland-Palatinate, the airport's local government owner.

In mid-July, HNA announced a $19m deal to buy a stake in Rio de Janeiro international airport. Wang said HNA could investing another $300m to $500m to develop the Brazilian airport.

HNA Airport is a unit of HNA Modern Logistics, the Chinese conglomerate's logistics and industrial arm whose assets includes Swissport International, a Zurich-based air cargo handler that HNA acquired for $2.8bn in 2015. (Reuters)

Irish Independent

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