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Airbus stops the delivery of five A330 destined to HNA Group Airlines
Toulouse - Airbus holds back the delivery of five A330 to Hainan Airlines, Tianjin Airlines, and Beijing Capital Airlines due to the late payments from Chinese conglomerate HNA Group. (airlinerwatch.com) More...
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I had not considered that, but it would make sense. The loan default rate of the Export-Import Bank of the United States for asian aviation customers is 0%. China is still flush with money, so much so that it is driving inflation.
This is easy to figure out why.
If you want to play you have to pay.
If you want to stay in business you deal with people who pay their bills.
This is why SW Air does so well. They have money in the bank and strike good deals on Airplanes, fuel etc.
United can wait in line and pay big interest.
If you have money, you don’t need good credit. You just pay. Another thing do business with good people. A contract with poor ones or a skunk isn’t worth anything anyway.
If you want to play you have to pay.
If you want to stay in business you deal with people who pay their bills.
This is why SW Air does so well. They have money in the bank and strike good deals on Airplanes, fuel etc.
United can wait in line and pay big interest.
If you have money, you don’t need good credit. You just pay. Another thing do business with good people. A contract with poor ones or a skunk isn’t worth anything anyway.
As complicated as business can be made out to be, you narrowed it down quite specifically here. I don't appreciate the cattle call with SW, but they know EXACTLY what they are doing. The plane they chose certainly doesn't hurt either.
It works. Hey China: Guess what happens in America if you don't pay your mortgage?
It works. Hey China: Guess what happens in America if you don't pay your mortgage?
Let me guess... in USA you walk away from your debt and obligations, declare bankruptcy, the taxpayer soaks up your debts and the debts of millions of other in the form of bail-outs to the corporations who gave you all the money to buy those houses that were overpriced and out of your ability to pay back?
Chinese companies got crazy buying all kinds of hotels, airlines, catering firms etc. in the past few years without proper due dilligence or establishing an orderly growth strategy and now they are paying the price for being so unprofessional. Good ole Waldorf Astoria Hotel in NY was sold by Hilton to a Chinese insurance company at a staggering $ 2 BILLION for starters and then converting it into condos and modernizing everything inside and out at another billion or so but the Chinese Government had to step in and take over the hotel for the insurance company was hanging to dear life by a thread. This reminds me of a headless and outright crazy acquisitions of all forms of real state in the US by Japanese conglomerates back in the 90s and most of the deals going real sour. For instance Mitsubishi paid zillions for the Rockefeller Center but had to unload it a few years later at huge loss.
In recent years the Chinese government had tightened their control on foreign exchange, preventing people transferring money out to buy foreign property and immigrate out. They can easily freeze the money from the Group as all foreign transfers go through the centeral bank which is under government control.
And also Chinese doesn’t have a “credit” culture, often Chinese will only buy something unless they can pay in lump sum (unless it is something super expensive, like a small apartment in their crowded cities can cause hundred thousands of dollars). Most Chinese have a debt card instead of credit card.
I used to joke about American colleges spent all their money right after payday and then have to borrow money from their Chinese coworker to get a beer.