Hainan Airlines, a carrier partly owned by American billionaire George Soros, plans to sell and lease back four aircraft for US$220 million (HK$1.72 billion) to cut its debt.

The carrier will sell four Boeing 737-800s to its affiliate Changjiang Leasing and then lease them back for as much as US$770,000 each a month for six years, it said in a statement to the Shanghai Stock Exchange on December 14.

Chinese carriers are under pressure to reduce their costs as they are paying higher fuel prices.

Hainan Airlines is also planning to expand its fleet to tap rising demand in China, the world's second-largest air travel market.

The carrier will lease five Fairchild Dornier GmbH 328s to its affiliate Grand Xinhua Express for 1.22 million yuan (HK$1.13 million) each a month, as well as transferring 230 employees to the smaller airline.