China Southern Airlines and Henan Aviation Investment have revised the capital contribution details for their airline joint venture.
In a statement to the Shanghai Stock Exchange, China Southern says that the airline and Henan Aviation will contribute yuan (CNY)720 million ($118 million) and CNY480 million in cash respectively, towards the first instalment totalling CNY1.2 billion.
After the airline's business licence and operating licence are approved, China Southern will then put in an additional CNY2.88 billion through "cash and real property", while Henan Aviation will pump in CNY1.92 billion in cash to complete the second instalment.
The two partners had previously said that they plan to jointly contribute CNY3.5 billion to the joint venture prior to their application to the Civil Aviation Administration of China (CAAC). Within six months of the joint venture's formation, they will then put in an additional CNY2.5 billion.
In June, the CAAC granted approval to China Southern and Henan Aviation for the establishment of a joint venture carrier in Henan province.
The airline will be based at Zhengzhou Xinzheng International Airport, where it will operate passenger and cargo services for domestic, regional and international destinations using Boeing 737 aircraft.
Henan Aviation is an investment company engaged in passenger and cargo transport, aviation infrastructure, logistics, real estate and tourism.