HNA shuffles Virgin board representatives

Virgin Australia has a new non-executive director on board after Chinese conglomerate HNA Group opted for a change in representative.

Virgin Australia on Tuesday said Zhang Kui had resigned with immediate effect and that its fourth largest shareholder was now represented by senior HNA executive Hou Wei.

Mr Hou has served in a number of executive roles at HNA and its affiliates since 2006, including Hong Kong Airlines, Capital Airlines, and Hainan Airlines.

Fellow HNA executive and chairman of the Australian International Aviation College, Du Ming, has been appointed as an alternate director, replacing Luo Jiaqui.

HNA owns 19.9 per cent of Virgin Australia, slightly less than fellow Chinese firm Nanshan Capital Holdings, Singapore Airlines and EAG Investment Holding.

Virgin Australia, which appointed former Queensland Rail boss Paul Scurrah as chief executive and managing director in February, this month scrapped its guidance for positive full-year underlying earnings.

It said it expects a loss of at least $35.6 million due to weaker domestic demand.

Shares in the company were flat at 18 cents at 1050 AEST on Tuesday but have slipped 2.7 per cent for the year so far and are 20 per cent lower than a year ago.

AAP

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