HNA Group subsidiary Fuzhou Airlines to launch its inaugural flight Oct.1st
HNA Group subsidiary Fuzhou Airlines is scheduled to launch its inaugural flight Oct. 1.
The Fuzhou-based carrier, which received approval to launch in January, plans to apply for an operating license at the end of April; it expects to receive it in June.
Fuzhou Airlines has a registered capital of CNY2 billion ($33 million) in which Hainan Airlines invested CNY1.2 billion for a 60% stake, while Fuzhou State-owned Investment Holding Co. and Century Golden Resources Group hold stakes of 20% and 10%, respectively. Ningbo Ruitong Network Technology Co. holds the remaining 10% stake.
The new airline—which will operate at least three Boeing 737 aircraft on domestic routes—faces stiff competition from Xiamen Airlines, which has a 50% share of the market.
Chinese domestic carriers are forging agreements with local governments to receive cash support and favorable policies. Hainan Airlines launched Capital Airlines in conjunction with the Beijing government; West Air with the Chongqing government; Lucky Air with the Yunnan government; and Tianjin Airlines with the Tianjin government.
Additionally, Hainan Airlines plans to establish Guangxi Airlines, Heilongjiang Airlines and Chang’an Airlines with different local governments.
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