Hainan Airlines, Africa World Airlines to launch joint venture
Haikou-based carrier signed a cooperative agreement with China-Africa Development Fund, Ghana SAS Financial Group and Ghana Social Security and National Insurance Trust to invest in AWA.
HU, which would be the controlling stakeholder of the new entity, did not give details on its investment and ownership structure.
The carrier said that “big market demand for air transport industry in Ghana and other parts of West Africa triggered by the backwardness of ground traffic” is the main reason it decided to launch AWA. But industry analysts also pointed out that “instability of political situation and harsh natural environment in Africa” would present some challenges for the successful operation of the new JV.
HU has pushed the Africa and Latin America market to the top of its agenda. The carrier operates Beijing-Dubai-Luanda route. HU chairman Chen Feng has said the carrier is committed to international market expansion and is actively working on international mergers and acquisitions activities, especially in Africa and other emerging markets.
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