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CAAC approves first private airline
(Xinhua)
Updated: 2005-05-20 21:29

The Civil Aviation Administration of China (CAAC) has given a go-ahead to the country's first private airline company, established by civil-aviation-related companies, Beijing vNews reported here Friday.

Citing a latest CAAC notice, the newspaper said the company, named "Western Airlines," has a registered capital of 100 million yuan, or 12.09 million US dollars.

The airline's investors include Sichuan Haite Investment Company, Sichuan Sanxing General Airline Company, Shenzhen Xianglong Import and Export Company, Shenzhen Guorui Investment and Consulting Company, Sichuan Yinyan Innovative Mechano- electrical Technology Company and individual investor Hui Qianli.

The Sichuan Haite Investment Company and Hui Qianli, with an investment of 30 million yuan each (some 3.63 million US dollars), are the company's largest shareholders.

As a major business invitation project of Mianyang Airport in southwest China's Sichuan Province, the company will sign up flight personnel from other airlines before having its own crew trained.

The company will also seek listing both home and overseas.

In January, China issued a regulation forbidding enterprises and institutions engaged in the civil aviation business to set up air transportation companies either independently or jointly to avoid unfair competition.

A CAAC official, who declined to be identified, said the investors of this new company were not regarded as "immediately related to the industry" and thus got the permission.

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