CAAC Southeast Regional Administration has granted a green light for Hainan Airlines Co., Ltd. (HU) to set up Fuzhou Airlines, a joint venture invested by the Haikou-based airline, Fuzhou State-owned Assets Investment Holdings Ltd., Century Golden Resources Group and Ningbo Ruitong Network Technology Co., Ltd, according to a notice released Thursday on the website of the aviation watchdog.

According to the notice, the new entity has a registered capital of 2 billion yuan, of which 60% was contributed by Hainan Airlines with 1.2 billion yuan in cash, 20% by Fuzhou State-owned Assets Investment Holding Co., Ltd. with 400 million yuan, and the rest 20% by another two shareholders with 400 million yuan, accounting for 10% respectively.

As a limited liability company, Fuzhou Airlines is licensed for domestic passenger and cargo transportation businesses. Based at Fuzhou Changle International Airport (FOC), the carrier is set to operate Boeing 737 aircraft.

In the initial stage, the new entrant will introduce professional & technical staff from Hainan Airlines including pilots, mechanics, flight dispatchers, and cabin crew.

CAAC has begun soliciting submissions on Fuzhou Airlines and said that the approval would be granted unless it was informed of reasonable grounds to reconsider the plan before Feb. 10, 2014.

An industry insider said that most flights between Fuzhou and other major cities are operated by Xiamen Airlines Co., Ltd. at present. Once HNA joins this market and sets up the Fuzhou Airlines, Fuzhou Changle International Airport will certainly open more routes, which are helpful for the airport expansion, thus it will lay a foundation for Fuzhou airport's effort to build an aviation hub.

Registered in Haikou with 4.1 million yuan, Hainan Airlines is the nation's fourth largest airline with a fleet of nearly 390 aircraft, mainly engaged in international and domestic air passengers & cargo transportation as well as related business in air transportation. Fuzhou State-owned Assets Investment Holdings has a total asset of 1.79 billion yuan and a registered capital of 510.5 million yuan. The cooperation between the two sides will boost the local economy.

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