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2-DEER: China’s HNA Group seeks buyer for $300 million ‘Dream Jet’


BEIJING: Cash-strapped Chinese conglomerate HNA Group has put up for sale its luxurious $300-million-plus corporate “Dream Jet” that sports a “seven-star” hotel-style cabin, say six aviation industry sources familiar with the matter.

The 40-seat Boeing 787 jet with registration “2-DEER”, used for charters as well as by top HNA officials, recently took Cambodian President Hun Sen to the UN General Assembly in New York and flew between Brazzaville, capital of the Republic of Congo, and Beijing, on dates coinciding with a visit to China by President Denis Sassou Nguesso.

Under pressure from Beijing, aviation-to-hotels group HNA has in 2018 sold real estate, stakes in overseas companies and aviation-related assets after a $50-billion acquisition spree in recent years.

One of the industry sources said HNA was attempting to sell the fleet in its wholly-owned private Deer Jet division and then shut it down.

The jet was put on the market in late July, after Co-Chairman Wang Jian died in an accidental fall in France, another source said.

It could prove difficult to attract close to the purchase price for the 40-seat 787, because of the limited market for widebody private jets, which are usually bought by governments or billionaires who prefer to select their own interior design, two of the sources said on condition of anonymity.

A 787-8 business jet has a list price of $232 million, but the interiors typically cost $90 to $170 million, Boeing says.

The interiors of the HNA jet, registered as “2-DEER” in Guernsey, dubbed the “Dream Jet” and featuring a 17-hour non-stop range, took 2.5 years to complete, Deer Jet says on its website.

“A lot of the large aircraft have to go for two-thirds of the (original) price or half the price because whoever buys it will have different thinking on interiors,” one of the sources said. “Nobody is going to spend that money and sit in somebody else’s bed with a different cushion. They want what they want.”

Some of the fittings are by designers such as Baccarat and Fendi, according to a Deer Jet tweet in 2016. A brochure for charter clients seen by Reuters calls 2-DEER a “flying home” with 26 lie-flat beds.

Deer Jet’s Beijing office is open to serious offers and has not assigned a jet broker, one of the sources said.

HNA and Deer Jet declined to comment on 2-DEER. They were not immediately available for comment on whether the rest of the fleet was for sale after Bloomberg on Thursday first reported that Deer Jet was looking to sell “dozens of jets”. — Reuters

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