China Southern Air Holding Co. said yesterday that it will invest more than 10 billion yuan (US$1.5 billion) in the next three to five years to help develop airport facilities in northeastern China's Liaoning Province.

China Southern, parent of the nation's biggest air carrier, said in a statement that it will buy a 40-percent stake in Liaoning Province Airport Management Group Co. as part of the airport operator's restructuring. But the Guangzhou-based company didn't specify how much it will pay for the stake. Officials at China Southern were not available to comment yesterday.

China Southern plans to be involved in the construction of a third terminal at Shenyang International Airport where it will base up to 100 planes by 2020, according to the statement.

The carrier plans to add five to eight international flights from Shenyang airport in the next three to five years, the statement said, adding it will help improve services such as ground-handling and logistics. Separately it said it will likely fly non-stop from Guangzhou to Sydney and Melbourne by the end of this year.

China Southern will work with the Liaoning provincial airport management to develop a 1-million-square-meter aviation industry zone in the province and help it attract high-tech companies, according to the statement.

Shares of Shanghai-listed China Southern Airlines Co. slumped 3.90 percent yesterday to close at 2.96 yuan, compared with a 2.94-percent drop in the benchmark Shanghai Composite Index.

(Shanghai Daily October 30, 2008)