Air China ups stake in Shenzhen Airlines

Air China announced on Sunday that it had gained control of Shenzhen Airlines after purchasing a 51 percent stake in the carrier for 680 million Yuan.

Air China's increased stake in the carrier, from a previous 25 percent, has now seen China Total Logistics' stake in Shenzhen Airlines rise to 25 percent and the 65 percent stake of Shenzhen Huirun Investment, who was the former controlling shareholder, drop down to 24 percent.

But the change will not affect Shenzhen Airline's image, Air China telling the Beijing Times on Monday that the carrier would retain its brand.

Air China board secretary Huang Bin said Shenzhen Airlines would not change its place of registration and will keep its logo as well as maintain the current market positioning.

He added that the carrier had no plane to further raise its stake in the carrier.

Air China said the move would improve the current financial status of Shenzhen Airlines and also the domestic and international network of both carriers, Shenzhen Post reported.

It is also expected to consolidate both of the airline's market position in the Pearl River Delta areas.

Sourced = The e Travel Blackboard