Hainan Airlines Holdings and its subsidiary airlines have cancelled the transfer of aircraft assets to a Hong Kong-based holding company.

This encompasses four Boeing 737-800s and two 787-8s owned by Hainan Airlines Holdings, two Airbus A350-900s by Hainan Airlines, and one 737-800 with Grand China Air.

The original transaction price on all the aircraft totals CNY4.54 billion ($635 million), the company says.

The aircraft were to be transferred to HNA Aviation (Hong Kong) Holdings, following decisions taken last year. HNA Group has a 48.7% share in the entity, with the remainder held by a holding company under the HNA Tourism Group banner.

In a previous transaction, Hainan Airlines Holdings transferred four A319s and eight 737-800s to the Hong Kong-based entity in June 2019. Valued at CNY2.76 billion, the transaction was in line with Hainan Airlines Holdings’ plans to dispose of aircraft that are more than 10 years old.

Cirium fleets data shows that the in-service and stored fleet of Hainan Airlines and its subsidiaries includes 205 737-800s averaging 6.5 years old, 10 787-8s averaging 6.4 years, and seven A350s averaging 1.4 years.

The company says: “Due to the impact of the [coronavirus], the overall aviation industry has been adversely impacted. Following this cancellation of the transactions, the company will optimise and adjust capacity and the plan to sell aircraft assets in accordance with how the [outbreak] develops and the return of market demand.”