HNA Group has agreed to set up a 3 billion yuan (US$438 million) joint venture in Chongqing to build a carrier in the municipality in southwest China.
HNA, China's fourth-largest aviation group, and the state-run Chongqing Yufu Asset Management Co on Monday signed a deal to jointly invest 3 billion yuan in setting up Chongqing West Air Holding Co, the group said in a statement yesterday.
The new company will increase investments in West Air, which was set up in 2006 in Chongqing with HNA holding a 35 percent stake, to help the carrier open overseas routes next year and expand its fleet size to 40 aircraft by 2015, the statement said, without revealing the investment size.
West Air plans to open routes linking Chongqing with Hong Kong, Macau, Taiwan, southeast Asia, Japan and South Korea by 2012.
West Air Holding will also launch a business jet company next year as well as set up terminals and hangars for business aircraft.
The new venture is part of HNA's cooperation with the Chongqing government. The group last year signed a framework pact with the municipal government, pledging to invest 30 billion to 50 billion yuan in the city within three to five years in aviation, logistics, tourism and airport management sectors.
