First Eastern Investment announces investment in Zhengzhou-based LCC, Peach invited to invest

First Eastern Investment chairman Victor Chu stated the group and Zhengzhou City Manli Transportation Group have signed an agreement to jointly establish a Zhengzhou-based LCC (Singdao/Apple Daily, 09-Jun-2014). First Eastern Investment will invest USD50 million for a 49% stake in the proposed LCC, which Mr Chu said could commence operations in mid-2015 at the earliest. The start-up will operate a fleet of three leased A320 aircraft initially and expanding to six aircraft in its second year of operation. Commenting on possible routes for the start-up, Mr Chu said considerations include mainland China, Japan and Hong Kong markets. Mr Chu also said the group plans to introduce Peach to provide technical support for the start-up, or to participate as a shareholder, although negotiations are still underway.