HNA Group says that it has signed a strategic cooperation agreement with the State-owned Assets Supervision and Administration Commission of Yunnan Provincial Government to form a joint venture airline in Yunnan.
According to this agreement, the new airline's registered capital will be at least RMB3 billion; it will be resourced mainly from Lucky Air, and jointly invested in by the State-owned Assets Supervision and Administration Commission of Yunnan Provincial Government and HNA Group's Grand China Air. Grand China Air will be the holding company and will be in charge of the new company's operation. The two parties will assign the high management personnel to the new joint venture according to their share of the investment.
The new Yunnan Airlines company will form its own flight networks based in Kunming, with the aim of building a local air company brand in Yunnan. HNA Group says that the province needs a local airline to support its aviation sector.
The original Yunnan Airlines, founded in 1993, was merged into China Eastern Airlines in 2002 and became a branch company of China Eastern.
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