Hainan Airlines Holding will move eight Boeing 737-800s and four Airbus A319s to a holding company based in Hong Kong.
Hainan’s subsidiary Air Changan will similarly be moving four A319s to the Hong Kong-based holding company, in a combined deal worth CNY2.76 billion ($399 million).
The move comes as the company plans to dispose of aircraft more than 10 years old, according to a Shanghai Stock Exchange disclosure.
The removal of the older aircraft will also help reduc operating costs, the disclosure adds.
The company did not specify which group airlines aircraft will come from.
Cirium’s Fleets Analyzer shows that among Hainan Airlines and its subsidiary airline companies, only two airlines operate the Airbuses. Capital Airlines operates 11 A319s, aged between nine and 14 years old, with another five in storage. Air Guilin has three A319s in operation.
Meanwhile, Hainan Airlines has 147 737-800s in operation, aged between one and 19 years. It has one 17-year-old 737-800 in storage.
Hainan subsidiary China Xinhua Airlines operated five 737-800s, aged between 13 and 19 years old. Fuzhou Airlines has 16 of the type in its fleet, with an age range of one to 13 years old. Urumqi Air operates 13 737-800s, and has another two 18-year-old 737-800s in storage.
Fleets Analyzer also shows that Air Changan has 11 Boeing 737-800s in operation. Historical fleet data shows the airline operated four A319s, which were subsequently moved to Capital Airlines.
Hainan Airlines Holding’s move to dispose of the older narrowbodies comes as it announced it was taking over the purchase rights to two Airbus A350-900s from sister company Hong Kong Airlines for free.
Hainan also announced it was selling two 737-800s to NAS Investments.