HAINAN Airlines, a carrier affiliated with embattled HNA Group, said a provincial regulator was its controlling entity but signalled that control of the firm may change hands amid a company-wide restructuring of its assets.

HNA, a major aviation-to-financial services group, has seen some deals unravel due to ownership concerns. After a US$50 billion acquisition spree over a two-year period, it is now undertaking a restructuring to raise cash by selling equity and real estate assets amid a government crackdown on debt.

Hainan Airlines, China’s fourth-biggest carrier, is widely believed to be controlled by HNA, but the Shanghai-listed carrier told an online investor conference last week that Hainan’s State-owned Assets Supervision and Administration Commission (SASAC) controls it through SASAC’s stake in Grand China Air Co.

Trading in Hainan Airlines’ shares has been suspended since January, as have shares in six other HNA-affiliated companies listed in Shanghai and Shenzhen, as the firms undertake a major asset restructuring. Hainan Airlines said Friday the restructuring may lead to a change of control.

“The company is currently communicating, negotiating and proofing its asset restructuring plan, and there is a possibility that the actual controller of the company could change,” said the carrier’s president, Xu Jun.

“It will ultimately be determined after the plan is approved by the relevant authority.”

Since the start of 2018, HNA Group has agreed to sell close to US$15 billion worth of real estate in Australia, New York and Hong Kong, along with shares in Deutsche Bank AG, and Hilton Worldwide Holdings Inc.

The conglomerate ultimately traces its roots back to Hainan Airlines, which was started by Chen Feng, a former government official who went on to establish HNA Group and now chairs both companies. (SD-Agencies)