Chinese airline says president under police probe

"Li Kun's responsibilities as president have been taken over by vice president and party secretary Fan Cheng," Shenzhen Airlines said in a statement.

Fan also serves as the vice president of Air China, the second-largest shareholder of Shenzhen Airlines, and his appointment has lifted the chances of the national carrier seizing control of the southern airline, state media said.

State-controlled Air China, which has a 25 percent stake in Shenzhen Airlines, is considering boosting its holding, Dow Jones Newswires reported Friday, citing Air China chairman Kong Dong.

Fan was appointed party secretary and vice president of Shenzhen Airlines after it said in December that Li Zeyuan, a senior advisor with a majority stake of 65 percent, was being investigated by police.

It is not clear what specific crimes Li Kun or Li Zeyuan are alleged to have committed.

Shenzhen Airlines, established in 1992, earned nearly 500 million yuan (73.2 million dollars) last year, according to the China Securities Journal.

The airline has a fleet of 136 planes and handled 15.1 million passenger trips last year, the paper said.

Source from - AFP