China's Hainan Airlines has won approval to restructure its airline units under the Grand China Air name and have its operations base in Beijing. It is a development that it hopes will lead to a foreign stock exchange listing.
Hainan, China's fourth-largest airline group when the main Hainan Airlines operation and subsidiary carriers such as Changan Airlines, Shanxi Airlines and Xinhua Airlines are included, secured in late June an air operator's certificate from the Civil Aviation Administration of China for new carrier Grand China.
Grand China will have its operations base in Beijing, although its registered offices will remain in the southern island province of Hainan, and will eventually incorporate operations of the existing group airlines. The Hainan group has been growing rapidly in recent years and has long sought to adopt the Grand China name. It is expected to be adopted from later this year.
Hainan hopes Grand China can eventually be listed on a foreign stock exchange following an initial public offering to raise funds for expansion, including to help pay for regional jets, narrowbody and widebody airliners it has on order. The group has also expanded into dedicated cargo operations and acquired 45% stakes in two Hong Kong-based airlines - Hong Kong Airlines and Hong Kong Express.
Hong Kong Airlines in particular is being driven towards major expansion. The former regional jet operator now has Boeing 737-800s and plans to acquire 20 A330s and 30 A320-family aircraft from Airbus. It wants to expand into the long-haul market with services to Australia, Europe, the Middle East and North America.
Source: Airline Business
