China’s HNA Group agreed on Tuesday to buy a 23.7-percent stake in Brazil’s third-largest airline, Azul SA, for US$450 million, news agency Reuters reported.

The deal would provide a cash cushion for Azul SA until an initial public offering (IPO) goes ahead, Azul’s chief executive Antonoaldo Neves told the news agency. The airline has since 2013 repeatedly postponed a planned IPO in New York and on Brazil’s São Paulo bourse, due to a weakening Brazilian economy and volatile financial markets.

“We didn’t have any pressure to do an IPO in the next 12 months … but now we have even more time,” Mr Neves said, as quoted by Reuters.

The tie up with the Chinese company – a conglomerate covering aviation, tourism and logistics – would also give Azul more options to sell or lease unused aircraft amid a sluggish economy in Brazil, said Mr Neves. He added that the airline planned to dispose of up to 15 aircraft.

The deal also represents the first venture for HNA Group in Latin American markets, Reuters reported. The firm recently purchased air cargo handler Swissport and Irish aircraft leasing firm Avolon, the news agency added.