China Eastern Air Announces Plan to Create Hainan-Based Carrier

(Bloomberg) --

China Eastern Airlines intends to establish a new airline in Hainan along with a group of other investors to take advantage of planned free-trade area and tourism growth, it says in a filing to the Hong Kong stock exchange.

  • Shanghai-based carrier would be the majority shareholder in Sanya International Airlines
    • Other backers include the governments of Hainan province and Sanya city, Juneyao Airlines and a unit of Trip.com
  • Initial registered capital will be 3-6 billion yuan
  • Filing makes no mention of HNA, the indebted conglomerate and owner of Haikou-based Hainan Airlines
    • China’s government began taking control of HNA in March
    • China Eastern is state-controlled

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