US forbids Chinese investment in Global Eagle

The US government has rejected, on national security grounds, a proposed Chinese equity investment into In Flight Entertainment specialists Global Eagle Entertainment (GEE).

The investment was going to be made by a Chinese airline, HNA Group which operates the Hainan Airlines fleet as well as aircraft carrying the Beijing Capital Airlines and Tianjin Airlines logos. The combined fleet today comprises more than 320 aircraft and plans were afoot to expand to some 500 aircraft.

GEE, in an investor call, says that Hainan and itself would amend their plan and re-submit the concept for approval by the government.

The original proposal, agreed last November, would have seen HNA invest a total of $416 million into GEE.

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