Fuzhou Airlines set for lift-off

Updated: 2012-10-17 17:23

By Wang Wen (chinadaily.com.cn)

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HNA Group, parent company of Hainan Airlines, is investing 1.2 billion yuan ($191.88 million) in a new airline operation, Fuzhou Airlines, in a joint venture involving the Fuzhou government and other investors, the Southeast Express reported on Wednesday.

The formal agreement on the investment was signed this month between HNA and the Fuzhou State-owned Assets Investment Holdings Co Ltd, which is funded by the local government.

HNA will own 60 percent of the new airline's capital with Assets Investment paying 400 million yuan for its share, accounting for 20 percent. The other shareholders will invest 200 million yuan, according to the agreement.

Fuzhou Airlines will be based in Fuzhou, the capital of Fujian province, and run air passenger and cargo businesses.

The investor statement said various processes need to be complete before the new carrier opens for business.