Private Chinese airline operator HNA Group will acquire up to 19.9 per cent of Virgin Australia as part of an alliance which gives the Australian carrier access to the booming inbound Chinese tourism market, raises $159 million in capital and will upset Air New Zealand which is trying to offload its 26 per cent stake in the carrier.

HNA, which has holdings in more than 10 airlines including Hainan Airlines and Hong Kong Airlines, is a private Chinese company, not a state-owned entity. It manages 16 airports and owns ground services, travel agencies and aircraft leasing operations