Grand China Air ready for launching
22 November 2007
[photopress:air_grand_china_air.jpg,full,alignright]HNA Group's Grand China Air, destined to be the country's fourth-largest commercial carrier, is scheduled to be launched on Nov. 29 in Haikou, capital of Hainan Province. Development Holding holds 40.65% of GCA with an investment of RMB1.5 billion while HNA's Hainan Airlines invested RMB900 million in a 24.08% stake. Other investors include Starstep, Yangtze River Investment, Pan American Aviation Holdings, Qiye Industrial Investment, Union Trans-Atlantic and Perfect Star Investment. To pave the way for GCA's launch, Chen Feng.Chen resigned as Hainan Airlines chairman to become chairman of the new company. GCA will be the controlling stakeholder in Hainan and under Chinese regulations the chairman of a company that is the controlling stakeholder of a listed company cannot also chair the listed company. GCA will merge Xinhua Airlines, Changan Airlines and Shanxi Airlines into one entity. HNA currently holds 60% of Xinhua, 93.75% of Shanxi and 81.16% of Changan. GCA will aim to purchase the remaining outstanding shares of those carriers 'very soon.' Chen Feng said the new entity plans to be listed on the Hong Kong stock exchange. He said, 'Hainan Airlines aims to solve its high debt ratio by reorganizing to launch Grand China Air and to list in Hong Kong, as the debt ratio would negatively impact raising funds for fleet expansion.' No, the illustration does not show the new Grand China Air. Think of it as a generic inflight illustration.
Source: ATW Online
