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China Southern Airlines subsidiary embarks on mixed-ownership reform path

By ZHENG CAIXIONG in Guangzhou | China Daily | Updated: 2020-11-27 09:12
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A China Southern aircraft is loaded with COVID-19 prevention and control materials in Shenyang, capital of Liaoning province. [Photo/Xinhua]

China Southern Airlines General Aviation Ltd, a unit of China Southern Airlines, has taken a mixed-ownership reform path, after the parent firm inducted three new investors into the company on Thursday.

Following this, the registered capital of China Southern Airlines General Aviation Ltd will increase from 1 billion yuan ($153.85 million) to more than 1.34 billion yuan, China Southern Airlines said in a statement.

Despite the induction of new investors, Shanghai Stock Exchange-listed China Southern Airlines is still the largest share holder in the company with a 57.9 percent stake. SOE Reform Development Fund Management Co Ltd, China Southern Power Grid Industrial Investment Group Co Ltd, China Southern Airlines Capital and a Zhuhai company hold 14.1 percent, 10 percent, 10 percent and 8 percent stakes respectively, said the statement.

As such, China Southern Airlines General Aviation Ltd will change from being a fully State-owned company to a mixed-ownership one, implementing the functions and powers of the board of directors, the statement said.

"And that (the mixed ownership) will help China Southern Airlines General Aviation Ltd further improve the corporate governance structure, and fully release the staff members' enthusiasm which will help the company become bigger and better. The mixed-ownership reform will help accelerate the high-quality development of State-owned enterprises in the years ahead," said the statement.

China Southern Airlines General Aviation Ltd has opened a cross-border helicopter route between Guangzhou, capital of Guangdong province, and the Macao Special Administrative Region, and teamed up for the development of Zhoushan inter-island commuter flight business.

The company also plans to open domestic and cross-border short-distance transportation routes between Guangdong, Hong Kong, Macao and other cities to help build a regional commuter flight network in the future, said the statement.

Based on the prosperous Guangdong-Hong Kong-Macao Greater Bay Area, China Southern Airlines General Aviation Ltd will further develop the civil aviation transport market, including marine transport, emergency rescue services, island sightseeing, short-distance air services, medical assistance, maintenance services, navigation training and related business in the future, said the statement.

China Southern Airlines General Aviation Ltd operates 25 general-purpose aircraft, including 16 S-Series heavy helicopters.

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