China's privately-owned Juneyao Group is in talks to sell about 30 percent of its airline unit to a foreign investor and plans to list the subsidiary next year, a company executive said on Saturday. Group Vice Chairman Wang Jun Hao did not identify the potential buyer or specify whether the stake sale would happen before or after the planned stock listing.
But he told Reuters on the sidelines of an industry forum that the group was in discussion to sell an around 30 percent stake in Juneyao Air to a "major global industry player".
Juneyao Air, which made it maiden flight last September, operates four A320 planes on domestic routes connecting cities such as Shanghai, Zhengzhou, Taiyuan, Changsha and Sanya. The carrier, expected to become profitable this year, placed orders in June for another six A320 family jets from Airbus, Wang said.
Many Chinese carriers are eager to bring in outside investors to help improve their competitiveness in a hotly contested market where AMR Corp, American Airlines and other global giants are racing to increase their flights.
China Eastern Airlines, one of the country's top three carriers, is awaiting regulatory approval to sell a nearly 25 percent stake to Singapore Airlines. Rival China Southern Airlines is now in exclusive talks to create a cargo venture with Air France KLM.
Wang said details of the planned stock listing of Juneyao Air had yet to be finalised, but an A-share issue was an option. "We plan to float Juneyao Air, hopefully next year, to fund its expansion," he said. Juneyao Group, founded 16 years ago, also controls Okay Airways and retailer Wuxi Commercial Mansion Co.
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