INTERVIEW-UPDATE 1-Hainan Air to buy 30+ planes for new airline

* To invest up to $878 million in new Tianjin Air in 3 yrs

* To add at least 30 planes for Tianjin Air in 3 yrs

* Says Hainan Airline's debt ratio at a "comfortable" level

(Adds quote, details)

By Michael Wei and Doug Young TIANJIN/HONG KONG, June 8 (Reuters) - HNA Group, the parent of China's No.4 carrier Hainan Airlines Co (600221.SS), will invest up to 6 billion yuan ($878 million) in its newly formed airline over the next three years, its chairman said on Monday. "We'll add no less than 30 aircraft over the next three years," Chen Feng told Reuters in an interview ahead of a launching ceremony for the new airline, Tianjin Air.

The bulk of new purchases will be short-range planes with 100 to 150 seats, and the company will consider buying from EAD's Airbus (EAD.PA), which has an assembly plant in Tianjin, he said, without giving details on purchase plans.

HNA Group also controls Hong Kong-listed Meilan Airport (0357.HK) and Grand China Air. It is also China's only airline with foreign investors, including billionaire financier George Soros.

Tianjin Air, formerly known as Grand China Express, has less than 20 planes at present. It also expects to double its employees to 4,000 in three years' time, Chen said, as the northern port city attracts significant passenger and cargo flows.

HNA owns roughly 80 percent of Tianjin Air with the Tianjin local government holding the remainder.

GOOD DEBT RATIO

Chen predicted China's aviation industry will undergo a drastic turnaround this year, helped by a recovery the world's third-largest economy.

Chief of Civil Aviation Administration of China (CAAC) Li Jiaxiang said last month that Chinese airlines had made a combined total profit of 1.94 billion yuan for the four months of 2009.

Like their western counterparts, Chinese airlines have been badly hurt by a slump in air travel demand and volatile fuel costs since last year. Most Chinese airlines received government subsidies in a bid to see out the downturn.

Hainan Airlines said last month it will receive a cash injection of 3 billion yuan ($439.7 million) from the local government and its parent group, lowering its debt ratio to around 76 percent from 82.8 percent. [nSHA203887]

Chen said it is a "very comfortable" level, but he added the figure could still go down by seeking new capital when conditions are appropriate.