HNA Group: Global Excellence with Chinese Characteristics (C)

July 2017 was supposed to be a triumphant month for HNA Group. The latest Fortune Global 500 list showed the company had again skyrocketed in its ranking to no. 170, an improvement of over 200 positions from the year prior. Yet earlier that same July, the mysterious death of Co-Chairman Wang Jian portended a darker outlook. Over the next three years, HNA would fall as fast as it has risen. A liquidity crunch forced HNA to sell many of the assets it had purchased. The Chinese government, once a core supporter, also lost patience with HNA, fearing that the sprawling and deeply indebted conglomerate could threaten China’s financial system. Chairman Chen Feng forged ahead with attempts to deleverage, but the COVID-19 crisis, which decimated HNA’s core travel business, proved to be the last straw. A task force of officials, reported in the media as a “takeover” by China’s Hainan provincial government, entered HNA to assess the situation. By 2021, it was clear that HNA Group would not just be humbled, it would also be broken up. Hundreds of HNA affiliates were to enter bankruptcy, the umbrella group would be restructured, and Chen Feng was legally barred from the luxuries leading HNA had afforded him. How could HNA, with its flight routes and reputation for good service, recover as an airline? Or were its founders’ sky-high ambitions to see an Icarus-like end?