Hainan Airlines Co Ltd has signed an agreement to take a 49-percent stake in Cambodia's planned flag carrier,today's Beijing Youth Daily reported.
Under the agreement,Hainan Airlines,Kingdom of Cambodia and a Cambodia company identified only as CTG will jointly launch a national carrier of Cambodia,Air Cambodia Ltd.The deal makes Hainan Airlines the first local carrier in China to have shares in an overseas airline company.As a result,Hainan Airlines will enjoy a priority to operate the new company's flights in and outside Cambodia.
The move will surely sharpen Hainan Airline's competitive edge in the global aviation market,said an official with the Civil Aviation Administration of China.
While expanding its share in the Southeast Asian aviation market,the move will help Hainan Airlines accumulate experience in multinational business,the official said.
According to sources close to the deal,registered capital for the joint airline will total US$ 10million.Hainan Airlines will provide US$ 4.9million,the Cambodia government will put in US$ 4.1million and CTG will contribute US$ 1million.
In its initial operations,the new company will rent two Boeing 937-400 airliners from Hainan Airlines.
Royal Air Cambodge,the previous flag carrier of Cambodia,was founded in 1994 and suspended services last October due to poor performance.
( eastday.com February 28, 2002)
