Hna China Air
Executive Summary
The HNA group re-launched its commercial carriers under a new entity: Grand China Air; their strategy was to create a brand where its four major airlines (Hainan, Shanxi, Xinhua, and Chang’an airlines can compete globally. They have delivered very good financial returns and have expanded throughout the Chinese market in a relative short period of time.
HNA is not a governments entity. this allowed them to expand very rapidly by increase the size of its equity from stock markets around the world considering the Chinese state run companies are being heavily funded by the government. HNA’s fundamental lies in the free-market system. This shows in the company’s core values and they are continuously investing money for the most innovative business practices.
The expanding Chinese economy has made the state-run companies to pursue international markets and focus on large metropolitan areas of china. HNA has continuously focused on remote areas of china, and took measures to secure domestic markets when competition left for major cities. The economic circumstances in china has made possible for an airline company to invest in local governments and actually see quantitative returns in a relative short period of time.
Competitors of HNA has a strong support from the government. This creates an incentive for these companies to practice risky business, since they are not fully liable of their actions. It is impossible for HNA to beat competition on price alone. These companies are heavily invested in international megacities cities and large domestic cities. When they underwent their new identity: Grand Central Air, Chen had planned expansions and launches to Africa, Europe, as well as the US; the company worked extremely close and built relationships with central and local officials and they committed to continuously show positive results.
HNA needs to stick to their core plan to develop local Chinese markets, while the Chinese economy
The HNA group re-launched its commercial carriers under a new entity: Grand China Air; their strategy was to create a brand where its four major airlines (Hainan, Shanxi, Xinhua, and Chang’an airlines can compete globally. They have delivered very good financial returns and have expanded throughout the Chinese market in a relative short period of time.
HNA is not a governments entity. this allowed them to expand very rapidly by increase the size of its equity from stock markets around the world considering the Chinese state run companies are being heavily funded by the government. HNA’s fundamental lies in the free-market system. This shows in the company’s core values and they are continuously investing money for the most innovative business practices.
The expanding Chinese economy has made the state-run companies to pursue international markets and focus on large metropolitan areas of china. HNA has continuously focused on remote areas of china, and took measures to secure domestic markets when competition left for major cities. The economic circumstances in china has made possible for an airline company to invest in local governments and actually see quantitative returns in a relative short period of time.
Competitors of HNA has a strong support from the government. This creates an incentive for these companies to practice risky business, since they are not fully liable of their actions. It is impossible for HNA to beat competition on price alone. These companies are heavily invested in international megacities cities and large domestic cities. When they underwent their new identity: Grand Central Air, Chen had planned expansions and launches to Africa, Europe, as well as the US; the company worked extremely close and built relationships with central and local officials and they committed to continuously show positive results.
HNA needs to stick to their core plan to develop local Chinese markets, while the Chinese economy