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Early years
Hainan Airlines was established in October 1989 as Hainan Province Airlines in Hainan, the largest special economic zone in China. Hainan Province Airlines became China's first joint-stock air-transport company following a restructuring in January 1993 and began scheduled services on 2 May 1993. The initial 250 million yuan was financed by the Hainan government and the corporate staff . The rest came from institutional shareholders. In 1996, the provincial airline was renamed Hainan Airlines.
American Aviation LLC, controlled by George Soros, had been a major shareholder of the airline since 1995.Executive-jet operations with a Bombardier Learjet 55 were added in April 1995. In 1998, Hainan Airlines became the first Chinese carrier to own shares in an airport after it purchased 25% stake of Haikou Meilan International Airport.
Development since the 2000s
In 2000, HNA Group was established and became the third largest shareholder of Hainan Airlines. It also controlled Shanxi Airlines, Chang An Airlines and China Xinhua Airlines. By 2003 Hainan, the main airline, overtook Chang'an as the fourth largest airline in China.In 2007 Grand China Air was established as the new holding company, when American Aviation became its subsidiary.
On 29 September 2005, HNA Group ordered 42 Boeing 787-8s, 10 of which were earmarked for the Hainan Airlines fleet. In January 2006, China Aviation Supplies Import and Export Group Corporation ordered 10 Boeing 737-800s for Hainan Airlines. In September 2006, Hainan Airlines ordered another 15 Boeing 737-800s.
On 4 December 2007, Hainan Airlines acquired three Airbus A340-600s on lease from International Lease Finance Corporation. On 14 November 2007, Hainan Airlines received its first Airbus A330-200. In June 2007, Hainan Airlines ordered 13 Airbus A320-200 aircraft. In late 2007, Hainan Airlines ordered 50 Embraer ERJ-145s and 50 Embraer 190s, with a total value of US$2.7 billion. The 50-seat ERJ-145s were produced by the Harbin Embraer Aircraft Industry joint venture, located in Harbin. E-190 deliveries began in December 2007. Due to the global financial crisis and huge losses incurred in 2008, the ERJ-145 order was reduced to 25. The E-190 order remained unchanged.
On 25 March 2015, Hainan Airlines announced its intention to acquire 30 Boeing 787-9s, which are all to join the Hainan Airlines Fleet. The delivery of the aircraft is scheduled to be completed by 2021. Two leased Boeing 787-9 aircraft were delivered in the spring of 2016. Hainan Airlines will also be among the first operators of the Comac C919, with deliveries beginning in the 2020s.
Bankruptcy and restructuring
Hainan Airlines's parent company HNA Group announced on January 19, 2021 that it had entered bankruptcy restructuring, after a government-led exercise to work out its debt failed to produce money to repay bondholders and creditors.As of September 24, 2021, HNA Group was broken into four components, one of which is the airline component, due to a bankruptcy court order. Liaoning Fangda Group Industrial, a conglomerate with business in the carbon, steel, and pharmaceuticals, will invest in the airline component.
