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China Eastern Gets Approval To Invest In New Airlines
A new airline to be jointly funded by China Eastern Airlines and China Aviation Industry Corporation has received approval from the CAAC.
On August 28, 2007, the two companies signed an agreement of intent to found the new airline. According to local media, the new airline has a registered capital of RMB1 billion. AVIC I invested RMB600 million, accounting for 60 percent of the shares; while China Eastern holds the remaining 40 percent for an investment of RMB400 million.
The new joint venture airline will base on Xian Xianyang International Airport. At the beginning of its operations, the two companies decided that China Eastern would assign some of its personnel and the new company will also introduce recruit and train staff from the air force.
China Eastern said that it will take advantage of the new airline to expand the medium or low-end regional market and complement its main business routes. Meanwhile, the new airline plans to purchase MA60 aircraft made by AVIC I.
At present, the airline is focusing on regional routes including those of Hainan Airlines, China Eastern Airlines, China Southern Airlines, Shanghai Airlines, and Shandong Airlines.
Source: China Hospitality News
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