The Civil Aviation Administration of China (CAAC) has given the nod for Hainan Airlines to launch a joint venture carrier in Fuzhou, the capital of Fujian province in southeast China.
Fuzhou Airlines’ investors include Hainan Airlines, Fuzhou’s state-owned asset investment company, Golden Resources Investment Group and Ningbo Ruitong Network Technology Co.
The carrier will have a start-up registered capital of yuan (CNY) 2 billion ($330.5 million). Hainan Airlines will hold a controlling 60% stake as it invests CNY 1.2 billion into the joint venture. Fuzhou’s state-owned asset investment will hold 20%, Golden Resources 10% and Ningbo Ruitong 10%.
Fuzhou Airlines will operate out of Fuzhou Changle International Airport with a fleet of Boeing 737, says the CAAC. It has been given approval to operate domestic passenger and cargo services.
Lucky Air’s vice chairman and president Hu Bo has meanwhile been appointed the in-charged for the set up of the new carrier. Hainan Airlines has an indirect stake in Lucky Airthrough Shanxi Airlines
In the initial stages, Hainan Airlines will deploy its flight, cabin and maintenance crews to Fuzhou Airlines.
The CAAC is calling for any parties with objections to the new airline to submit their comments by 10 February.
FlightMaps Analytics show that Fuzhou Airlines will compete head on with Xiamen Airlines, which holds 55.8% of all available seat kilometres out of Fuzhou. Xiamen Airlines is a subsidiary of China Southern Airlines.