The office building of HNA Group in Hainan
 
HNA Group, China’s fourth-largest airline group and the parent of Hainan Airlines (600221,900945), will bid 800-900 million euros for Germany’s Hochtief Airport, reports caijing.com.cn.
 
According to the report, HNA Group will be competing with Singapore’s Changi Airport Group, French group Vinci, a consortium led by GIP and Allianz, and a group led by Fraport and Deutsche Bank.
 
Should HNA Group succeed in gaining control of Hochtief Airport, it will obtain equity stakes in the international airports of Athens, Dusseldorf, Hamburg, Tirana, Budapest and Sydney.
 
According to the report, Hochtief Group plans to sell all its airport-related assets this year. Hochtief Airport owns a 20 percent stake in Germany’s third-largest airport, Dusseldorf International Airport, a 34.8 percent stake in Hamburg Airport, and a 5.61 percent in Sydney International Airport.
 
An insider from HNA Group said as the economies of Europe and the U.S. are sluggish at present, it may be able to purchase airport-related assets at relatively lower prices as part of its global expansion strategy.

The total passenger throughput of Hochtief Airport and the six airports in which it owns stakes in, totaled 93 million person-times per year, which equals the 2012 full year target of Beijing Capital International Airport (0694.HK), according to a source from Beijing Airport.
 
Beijing Airport became the world’s second busiest international airport in 2010, with passenger throughput of 70 million person-times, added the source.
 
HNA Group will bid for Hochtief Airport through its subsidiary, HNA Airport Holdings (Group). HNA Group holds a 51 percent stake in the subsidiary, while Hong Kong Pacific Fund Management and Asian Development Bank jointly hold the remaining 49 percent stake.
 
At present, HNA Group owns Hainan Meilan International Airport (0357.HK), Gansu Airport, Sanya Phoenix Airport, Dongying Yongan Airport, Manzhouli Airport, Yichang Sanxia Airport, Dunhuang Mogaoku Airport, Qingyang Xifeng Airport, Lanzhou Zhongzhou Airport, and Jiayuguan Airport.
 
All the above airports will be injected into Meilan Airport and will be listed on the A share market, as planned by HNA Group.
 
According to an industry insider, should HNA Group succeed in its bid, it will be able to deepen its network in Europe and avoid direct competition with Air China, which has its European hub in Frankfurt.
 
The current European hub of HNA Group is Berlin, added the insider.
 
 
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