HNA Airlines Rapid Expansion And Return To Main Responsibilities And Business Strategic Adjustments

On January 29,2021,HNA Group announced bankruptcy and reorganization.The former Fortune 500 company collapsed.Its subsidiary Hainan Airlines Holdings Co.,Ltd.(hereinafter referred to as "HNA Airlines")also appeared in the first batch as an important subsidiary.In the bankruptcy reorganization list.The double attack of the epidemic and the debt crisis caused HNA Airlines to go bankrupt.However,the epidemic is only a catalyst for the bankruptcy and reorganization of HNA Airlines,which has fallen into a debt crisis after 2017 and is on the verge of bankruptcy.HNA Airlines was established in Haikou City,Hainan Province in 1993,and has now developed into one of China’s four major airlines and the only private airline among them.HNA Airlines implemented an expansion strategy before 2017.However,its expansion rate was too fast,and the company’s growth rate could not match the expansion rate.In addition,its expansion process had neglected the macroeconomic impact,financing costs,excessive leverage,and related violations within the group Transaction and other issues eventually caused a liquidity crisis to cause the company to shrink.HNA Airlines immediately returned to the main responsibility of the main business,focusing on the main aviation business to open up a path of differentiated aviation.Through a single case study,this article uses 2017 as the time node to first demonstrate and analyze the motivation,path,and expansion mode of HNA Airlines’ expansion strategy before 2017,and determine whether there is rapid expansion;secondly,it demonstrates and analyzes HNA Airlines’ shrinking performance and rapid expansion failure Leading to contraction;the final argument and analysis after 2017 HNA Airlines returns to the main responsibility of the main business,focusing on the development of the main aviation business,adjusting to the drivers,paths,preliminary performance and risks of differentiated aviation,and providing suggestions on its risk prevention and subsequent optimization Measures to provide useful reference and reference for HNA Airlines and other airlines.The case study found that the rapid expansion of HNA Airlines was the root cause of its contraction.Its rapid expansion achieved remarkable results in the early stage,but only focused on the results.It ignored the hidden dangers and internal and external environmental changes under the rapid expansion,which eventually led to the shrinkage of HNA Airlines.Immediately adjust the strategic direction and return to the main business.The 9 subsidiaries and affiliates of the main aviation industry are adjusted to differentiated airlines to enhance their core competitiveness.Although the rapid expansion has caused a great blow to HNA Airlines,it cannot completely deny the rapid expansion strategy.The rapid expansion of HNA Airlines has also brought positive effects.What needs to be considered is the degree and method of expansion,as well as the integration of the industry.The internal and external environment will be adjusted in due course,returning to the main responsibilities and main business,and seeking high-quality sustainable development.The research significance of this article: at the theoretical level,it has enriched the domestic airline corporate strategy research,deeply studied the choice and implementation of airline corporate strategy,and has theoretical contributions to the establishment of effective corporate strategy.At the practical level,take HNA Airlines as an example to explore the mechanism of its rapid expansion and its adjustments after returning to the main responsibility of the main business,in order to provide domestic airlines with a reference for plans and ideas in terms of corporate strategy.