Hainan Airlines confirmed (25-Oct-2012) the carrier will invest CNY1200 million (USD187.5 million) in cash and assets for a 60% stake in Fuzhou Airlines, a proposed JV between Hainan Airlines, Fuzhou State-owned Assets Investment Holdings Co, Century Golden Resources Group and Ningbo Ruitong Network Technology Co. Fuzhou State-owned Assets Investment Holdings Co will invest CNY400 million (USD62.5 million) for a 20% stake while the remaining 20% will be split evenly among Century Golden Resources Group and Ningbo Ruitong Network Technology Co. A formal agreement was signed on 24-Oct-2012. Fuzhou Airlines will have nine directors, five of which will be recommended by Hainan Airlines. The start-up carrier will operate domestic and international passenger and cargo air services. [more – original PR – Chinese]
Hainan Airlines confirms USD188m investment in Fuzhou Airlines
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Australia's view was progressive and detached from bygone days of national carrier interest; Chinese airlines hold 90% of the market to Australia. Elsewhere many governments still hold back on Chinese traffic right expansion so their local airlines can continue to grow. There are 15 Chinese airports that have nonstop flights to Australia with a total of 27 airport pairs – figures that should expand in 2017 as the market evolves further with the Virgin Australia-HNA partnership.
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