Beijing (XFN-ASIA) - China's General Administration of Civil
Aviation (CAAC) said it will grant operational license to Kunpeng Airlines Co
Ltd, a regional carrier set up by US-based Mesa Air Group and China's Shenzhen
Airlines Co Ltd.
The joint venture will have 500 mln yuan in registered capital, with Shenzhen Airlines holding a controlling 51 pct stake while Mesa Air's units Ping Shan SRL and Shan Yue SRL will hold the remainder, the CAAC said.
The industry regulator said in a statement that it is inviting comments from the public on the proposal.
Kunpeng Airlines will operate regional passenger and cargo business in mainland China, with three CRJ200 aircraft in the initial stage, according to the CAAC.