International financier George Soros has successfully expanded
his investment in Hainan
Airlines, pouring another US$25 million into China's
fourth-largest carrier, he confirmed while visiting the firm in
south China's Hainan Province on Saturday.
"We are very confident about the future development of Hainan
Airlines," he said.
Soros, the first overseas investor to take a major stake in a
Chinese airline, paid about US$25 million in 1995 for 14.8 percent
of Hainan Airlines. The Soros-controlled American Aviation LCD is
the carrier's largest shareholder.
Chen Feng, chairman of the Shanghai-listed airline, said the new
investment would be used to reorganize Hainan Airlines and build a
new brand, Grand China Air, by merging smaller carriers.
Chen said Hainan Airlines Group, the parent company, has
obtained approval from the General Administration of Civil Aviation
of China to form a new carrier this year through the merger of
Hainan Airlines and its subsidiaries Xinhua Airlines Co, Chang'an
Airlines Co and Shanxi Airlines Co.
"At the end of this year, we will finish the second phase of
private placement capital, amounting to 5 billion yuan (US$617
million), and by that time the new carrier, Grand China Air, is
expected to be put into operation," Chen said.
Hainan Airlines operates more than 500 routes on the Chinese
mainland and flies to destinations such as Seoul, Osaka, Macao and
Kuala Lumpur. The company said in August it may start flights to
the US as early as this year as part of plans to fly beyond
Asia.
(China Daily October 17, 2005)