China Eastern Airlines' Yunnan branch receives licence

China Eastern Airlines Yunnan Co Ltd received (01-Jul-2011) its public air carriers licence from CAAC, after receiving approval from the aviation authority in Dec-2010. Details include:

• Name: China Eastern Airlines Yunnan Co Ltd;
• Airport base: Kunming Wujiaba International Airport;
• Business type: Limited liability company;
• Registered capital: CNY3661.5 million (USD563 million);
  • China Eastern Airlines: CNY2380 million (356 million) for a 65% stake;
  • Yunnan Province State-owned Assets Supervision and Administration Commission: CNY1282 million (USD197 million) for the remaining 35% stake;
• Business scope: Domestic (including Hong Kong and Macau) and international passenger and cargo operations;
• Application status:
  • Signed rental contracts and office space with China Eastern Airlines;
  • Approved to receive 30 aircraft from China Eastern;
  • Signed airport base services agreement with Yunnan Airport Group;
  • Received approval from Airworthiness Division for its corporate logo and aircraft livery;
  • China Eastern has agreed to provide 336 air crew, 510 maintenance personnel, 62 dispatchers, 315 transport personnel, 184 crew members and 121 security staff;
• Executives:
  • General Manager: Shi Fukang;
  • Vice President Operations: Ma Zhekun;
  • Vice President Fleet operation: Li Junming.

China Eastern will fund the venture with CNY700 million in cash and CNY1680 million in aviation-related assets. The Yunnan government will provide CNY1030 million worth in land and CNY254 million in cash for the venture.