The Civil Aviation Administration of China (CAAC) has granted approval to China Southern Airlines and Henan Aviation Investment for the establishment of a joint venture carrier in Henan province.
The carrier will have a registered capital of yuan (CNY) 6 billion ($979 million). China Southern will contribute cash and other assets of CNY3.6 billion and will hold a 60% stake. Henan Aviation Investment will contribute another CNY2.4 billion in cash and hold the remaining 40%, CAAC says.
The airline will be based in Zhengzhou Xinzheng International Airport, where it will operate passenger and cargo services for domestic, regional and international destinations. It will use Boeing 737-300 and 737-800 aircraft for the services.
China Southern will initially provide the carrier's service personnel, including flight, technical and maintenance, and dispatch crew, CAAC adds.
Henan Aviation Investment is an investment company engaged in sectors, which include passenger and cargo transport, aviation infrastructure, logistics, real estate and tourism.