May 31 (Reuters) - Virgin Australia Holdings Ltd VAH.AX :
* Strategic alliance with HNA & new equity investment VAH.AX
* Heads of agreement to form a strategic commercial alliance with HNA Aviation Group Co. Ltd
* HNA will also make an equity investment in the Virgin Australia Group
* Investment will be made in form of A$159 million placement of shares
* Following the placement, HNA will have a shareholding of approximately 13 per cent in the Virgin Australia Group
* Says HNA will be invited to nominate a director to the Virgin Australia Group board
* Capital structure review to optimise the Virgin Australia Group's balance sheet and capital structure is ongoing
* HNA intends to increase its shareholding over time up to 19.99 per cent
* Says under the commercial alliance, the companies will look to introduce direct flights between Australia and China
* Source text for Eikon ID:nASX6196k9