Grand China Air, a new carrier to consolidate four airline companies on the Chinese mainland, will be inaugurated early next year, the parent company, Hainan Airlines, said on Friday.

 

Preparations for the new company will be finalized before the end of this year to consolidate operations of Hainan, Xinhua, Chang'an and Shanxi, Hainan Airlines Co. Ltd. Chairman Chen Feng told a group of reporters on the sideline of the 17th National Congress of the Communist Party of China.

 

He said Hainan Airlines will introduce 20 to 30 aircraft to the new company every year.

 

Meanwhile, Hainan Airlines also plans to enter into insurance in an 800-million yuan (US$107 million) joint venture with Taiwan's Shin Kong Life, with each party holding 50 percent of the shares, Chen said.

 

He did not comment on a question about Hainan Airlines' overseas listing plan. "You can just wait for the good news."

 

Hainan Airlines, based in Haikou, is China's fourth largest carrier and the country's first Sino-foreign joint venture aviation company.

 

Chen said his company is "on good terms" with its overseas investors, including renowned international financier George Soros.

 

(Xinhua News Agency October 19, 2007)