Shanghai Airlines Co Ltd plans to float 200 million A-shares within the year in Shanghai Stock Exchange, after getting nod last month from the China Securities Regulatory Commission, the Southern Daily reported.

If so, it will be the fifth publicly traded Chinese carrier.

The company is in the final stage of preparation for its initial public offering, according to its general manager Fan Hongxi.

Fan said his company would use the proceeds from the share offering to buy aircraft and expand its fleet.

Shanghai Airlines has a fleet of 24 aircraft, with two additional Boeing 737 planes to be delivered in September.

It plans to double the current fleet by adding five planes in each of the following five years.

Fan is optimist about this share floatation, saying Shanghai Airlines is one of the most profitable air companies in China.

Shanghai Airlines profited 303.6 million yuan (US$37 million) last year, accounting for 28.7 percent of the country's total of 570 million yuan in the aviation industry.

The company gained 70 million yuan during the first five months this year, when China's entire aviation industry was in red.

Established in 1985, Shanghai Airlines has net assts valued at 630 million yuan. Its assets total 6.37 billion yuan.

The company doesn't plan to join any of the three aviation groups the Chinese aviation authority plans to found in the air service sector, according to Fan.

It aims to be one of the few independent regional carriers in China.

( eastday.com July 10, 2002)