I think one major plus from this is the opportunity to push Chinese Pax around Australia on the domestic network. I have noticed this more in the last couple of years, large groups of Chinese tourists on nearly every flight. Flew into Avalon from Sydney last week with a group of 40 Chinese tourists.
Indeed - I think this is/was one of the main opportunities that may seemed to have drive the deal and the service to HKG, but two questions remain,
1. why not fly direct to HU's hub in either Haikuo or Beijing? Why fly to a slot constrained HKG that isn't a HU hub that has heaps of competitors that want to protect their market share?
2. Do they expect HU pax to stop at both HKG on the way to MEL? Undoubtedly getting Chinese tourist flying on VA's domestic network is a good thing for VA to aim for. but why not just do a codeshare deal with HU? Maybe there is a logic to it but it doesn't jump out at me.
I think this is clearly a route to please newly founded shareholders but I don't think they had a choice, their balance sheet is stuffed, they need the cash to keep the place going.
Maybe its a case of 'beggars can't be choosers' as you imply, but could be other investment /political/economic considerations for the owners of Hainan to make the investment in VA. We don't know for sure that HU even insisted on this (it could be a purely VA decision) - will have to wait and see how it all pans out.
Possibly another way to view it is that we look at the existing VA A330 fleet and start working out where they could send them and make money? Their owners hubs of SIN AUH AKL and now HAK are all within range but just end up competing with their owners (a nil sum game), certainly as far as A332s go - Asia and Southeast Asia are the logical places to send them if you cant make money with them transcon in Australia.
I am surprised that VA wasn't looking at places to send their A332s somewhere that didn't have QFi as a competitor (or were underserved) and places that had weak overseas competitors, obviously with the range limitation then North and South America and Africa can be ruled out, anything to an owners hub can be ruled out, Europe would require multiple stops and just end up competing with EY anyway, anything in the Pacific does not have the yield and market at the moment to justify A330 services so they were pretty much 'stuck' with somewhere/anywhere in Asia or SE Asia to send the A332s. So they chose the most slot constrained, competitive, modest yielding and crowded market that they could find.