Research On The Capital Operation Management Of Hainan Air Group

HNA Group, formerly known as Hainan Airline Company, founded in Hainan in 1989 by the Hainan provincial government. In 1993, investment by the Hainan provincial government and the SASAC, HNA Group became the first joint-stock airline. In just twenty-years-time, HNA Group has accumulated a lot of wealth, expanding the business scale and enhance market competitiveness and influence of companies, became the fourth largest airline in addition to three directly under the Civil Aviation Administration of Aviation (Air China, Air Eastern and Air Southern). The company, created a miracle of China’s civil aviation history. HNA Group’s success superb capital management are inseparable. Therefore, further study of the operation of HNA Group’s capital management has important theoretical and practical significance.This paper first introduces the basic theory and the basic situation of HNA Group’s capital operation; then it analyzes the main ways HNA Group capital operate, including: joint-stock reform, stock issuance and listing overseas financing, bank financing, mergers and acquisitions, among others; and then it further analyzes the effect of HNA Group’s capital operation from the perspectives of financing scale, structural as well as financing methods. Finally, the paper makes recommendations on HNA Group’s future capital operation management including (1) Search for new financing bodies; (2) Optimize the aviation, airports, hotel and related business sectors within the group; (3) Set up the group’s finance branch to co-ordinate the management of monetary capital; (4) Promote the operation management of intangible assets; (5) Open up foreign markets in due time.Major conclusions drawn on this study are:(1) Capital can become the core competitiveness of enterprises, especially enterprises in capital-intensive industries; (2) Effective capital operation strategy is the key to success in business capital operation management; (3) the sustainable development of enterprises can be achieved by keeping on the improvement of their capital management. This study can provide a reference for other domestic enterprises about capital operation, especially enterprises in capital-intensive industries and enterprises of the aviation.