A week after international financier George Soros injected US$25
million into Hainan
Airlines, the fourth largest carrier of China, this airline
group obtained another sum of 1.5 billion yuan (US$185 million)
Saturday for the building of a new carrier, Grand China Air.
Under the permission of the General Administration of Civil
Aviation of China (CAAC), the Hainan Airlines Group is reorganizing
its assets and building a new carrier under the brand of Grand
China Air. The group planned to collect a capital of 5 billion yuan
(US$617 million) in the first and second private placement phases
by the end of this year.
The 1.5 billion yuan investment, from the Hainan Development
Holdings Limited, along with Soros' investment, will accelerate the
completion of the first two phases of private placement, while
greatly enhancing investors' confidence, said Chen Feng, chairman
of the Hainan Airlines Group.
"In the third phase, Grand China Air will try to be listed as an
H-share company for Hong Kong investors next year", said Chen.
The building of Grand China Air is significant not only for
Hainan Airlines, but also for promoting the comprehensive
competitiveness of the country's civil aviation.
The Hainan Airlines Group, established 12 years ago, now owns
107 airplanes and operates more than 500 routes in the Chinese
mainland. It also flies to Asian destinations such as Seoul,
Osakaand Kuala Lumpur.
According to World Brand Lab's evaluation, the value of the
brand Hainan Airlines is 3.52 billion yuan (US$425 million), the
third highest of China's airline companies.
(Xinhua News Agency October 23, 2005)