International financier George Soros has successfully expanded his investment in Hainan Airlines, pouring another US$25 million into China's fourth-largest carrier, he confirmed while visiting the firm in south China's Hainan Province on Saturday.
"We are very confident about the future development of Hainan Airlines," he said.
Soros, the first overseas investor to take a major stake in a Chinese airline, paid about US$25 million in 1995 for 14.8 percent of Hainan Airlines. The Soros-controlled American Aviation LCD is the carrier's largest shareholder.
Chen Feng, chairman of the Shanghai-listed airline, said the new investment would be used to reorganize Hainan Airlines and build a new brand, Grand China Air, by merging smaller carriers.
Chen said Hainan Airlines Group, the parent company, has obtained approval from the General Administration of Civil Aviation of China to form a new carrier this year through the merger of Hainan Airlines and its subsidiaries Xinhua Airlines Co, Chang'an Airlines Co and Shanxi Airlines Co.
"At the end of this year, we will finish the second phase of private placement capital, amounting to 5 billion yuan (US$617 million), and by that time the new carrier, Grand China Air, is expected to be put into operation," Chen said.
Hainan Airlines operates more than 500 routes on the Chinese mainland and flies to destinations such as Seoul, Osaka, Macao and Kuala Lumpur. The company said in August it may start flights to the US as early as this year as part of plans to fly beyond Asia.
(China Daily October 17, 2005)
