ASIAN AIR CARGO SUPPLEMENT – HNA Group to create China’s fourth-biggest carrier
CAAC granted a public air transport enterprise operating license to HNA Group for its Grand China Air entity, bringing the Hainan Airlines parent one step closer to launching its new carrier, Air Transport World (ATWOnLine) reported. It added that the new airline will combine Hainan along with Xinhua Airlines, Changan Airlines and Shanxi Airlines, which […]
July 1, 2007
HNA Group president Chen Feng called the license “an important milestone.” It follows the April award of GCA’s general aviation business license. Chen said Grand China now will work toward merging the four carriers, raising CNY5 billion ($654.9 million) in capital and listing the new company on the Hong Kong Stock Exchange, possibly by year end.
HNA currently holds 60 percent of Xinhua, 93.75 percent of Shanxi and 81.16 percent of Changan. An internal source told ATWOnline that Grand China Air Holding will purchase the remaining outstanding shares of the three airlines “very soon.”
GCA, to be based in Beijing, has registered capital of CNY3.09 billion. State-owned Hainan Development Holding holds 48.6 percent with a CNY1.5 billion investment while HNA Group and Starstep Ltd. hold 19.1 percent and 18.6 percent respectively. Minority shareholders are Yangtze River Investment Holding (8.1 percent) and Hainan Qixing Investment (5.3 percent).