News: VAH Virgin Australia announces strategic alliance with HNA Aviation Group

May 31 (Reuters) - Virgin Australia Holdings Ltd (VAH) :

• Strategic alliance with HNA & new equity investment (VAH)
• Heads of agreement to form a strategic commercial alliance with HNA Aviation Group Co. Ltd
• HNA will also make an equity investment in the Virgin Australia Group
• Investment will be made in form of A$159 million placement of shares
• Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin Australia Group
• Says HNA will be invited to nominate a director to the Virgin Australia Group board
• Capital structure review to optimise the Virgin Australia Group's balance sheet and capital structure is ongoing
• HNA intends to increase its shareholding over time up to 19.99 per cent
• Says under the commercial alliance, the companies will look to introduce direct flights between Australia and China