HNA buys into Brazil airline

Hainan Airlines Co Ltd, China's largest private airline and a subsidiary of conglomerate HNA Group, has bought a 23.7 percent stake in Azul SA, Brazil's third-biggest airline, for $450 million, the latest in a series of overseas acquisitions by the company.

Hainan Airlines became the single largest shareholder in Azul, and will appoint three new members to Azul's board of directors. The two sides have also agreed to launch more cooperation in code sharing, new routes, frequent flier programs, marketing programs and cargo handling.

HNA said both carriers will benefit from the substantial passenger traffic between China and Brazil. In August, around 3,000 Chinese visitors will travel to Rio de Janeiro for the Olympic Games, a 10-fold increase in the number of tourists over the same period last year.