Hainan Airlines May Announce Restructuring

Hainan Airlines is undergoing major restructuring due to financial pressures from overspending on acquisitions and government scrutiny. The company faces liquidity challenges, with high borrowing costs and questions about asset pledges. The restructuring aims to restore confidence by demonstrating asset liquidity and addressing debt. Despite financial difficulties, Hainan Airlines is considered too big to fail due to its extensive investments and government connections.

What financial strategy has Hainan Airlines heavily relied on, leading to increased borrowing costs?

• Using shares as collateral

• Issuing new shares

• Reducing operational costs

• Increasing ticket prices

What is one of the main goals of Hainan Airlines' expected restructuring announcement?

• Calm fears about liquidity issues

• Increase ticket prices

• Expand into new markets

• Acquire more companies

How much is Hainan Airlines' untapped credit line worth in US dollars?

• $60 billion

• $50 billion

• $40 billion

• $30 billion

What is a significant factor contributing to the belief that Hainan Airlines is 'too big to fail'?

• Its limited investments

• Its broad exposure within China

• Its small market share

• Its lack of government connections

What has the Chinese government scrutinized regarding Hainan Airlines?

• Its domestic flight operations

• Its overseas acquisitions

• Its marketing strategies

• Its customer service policies