Cruise liner seizure sparks S. Korea travel boycott

<!–enpproperty http://www.china.org.cn/china/2013-09/25/content_30128390.htmwww.china.org.cnHNA Tourism, the company which owns the Chinese luxury cruise liner which was impounded for several days in the South Korean island Jeju, has vowed to suspend all the travel business with the island until they receive an official apology.2013-09-25 14:03:36.0By Liu QiangCruise liner seizure sparks S. Korea travel boycottChina,cruise,liner,impound,seizure,travel,South,Korea,boycott,HNA,legal,dispute,By Liu QiangBy Liu Qiang10077075074Nation/enpproperty–>

A Jeju court impounded the cruise liner Henna due to a legal dispute. [people.com.cn]

HNA Tourism, the company which owns the Chinese luxury cruise liner which was impounded for several days in the South Korean island Jeju, has vowed to suspend all the travel business with the island until they receive an official apology.

On September 13, a Jeju court banned the cruise liner Henna from leaving the island after a seizure request made by Hong Kong based Shagang Shipping Co Ltd.

The vessel, carrying more than 1,600 tourists was held for over 40 hours before the passengers were returned to China on special chartered flights. HNA Tourism put up a US$3 million bond and compensated passengers. The incident has incurred an estimated loss of more than 60 million yuan.

The cause of the conflict is a legal dispute between Shagang Shipping Co Ltd and HNA Group, which runs HNA Tourism.

Shagang Shipping signed a lease contract in 2008 with Grand China Shipping, another offshoot of HNA Group, guaranteeing their performance. Since October 2010, Grand China was not able to afford the lease payments and went into liquidation in April 2013.

Shagang Shipping took action against HNA Group in London last September and won more than US$58 million arbitration award, although such payouts are hard to enforce in China.

Zhang Ling, chairman of the board of directors of HNA Tourism responded that the cruise liner had nothing to do with the legal disputes, and that the company had been harmed by the Jeju court’s reckless decision.

A statement from HNA Group said that the seizure disregarded the personal freedom and legal rights of the passengers and the crew, and HNA Group reserves the right to pursue their legal responsibilities.