CAAC East China Regional Administration has checked and issued an initial approval to the launch of Jiangxi Airlines, a Nanchang-based regional carrier proposed by Xiamen Airlines Co., Ltd. (MF) and Jiangxi Airlines Investment Co., Ltd., according to a notice released on CAAC's official website on Monday.

According to the notice, the start-up carrier has a registered capital of 2 billion yuan. Xiamen Airlines, which invested 1.2 billion yuan, has a 60% ownership, while Jiangxi Airlines Investment holds the rest 40%, with a capital injection of 800 million yuan.

As a limited liability company, Jiangxi Airlines will be licensed for domestic passenger and cargo transportation businesses. Based at Nanchang Changbei International Airport (KHN), the carrier is set to operate Boeing 737 aircraft.

In the initial stage, essential staff will be enrolled by recruitment except that the pilots, mechanics, flight dispatchers, cabin crew and security staff shall be introduced from Xiamen Airlines.

According to previous reports, Jiangxi Airlines is expected to commence commercial operations on June 18, with a fleet of 5 aircraft. Its fleet size will be expanded to 8 aircraft in 2016 and 30 by 2020.

Registered in Xiamen City, Fujian Province with a registered capital of 5 billion yuan, Xiamen Airlines is mainly engaged in domestic and international air passenger and cargo transportation. Jiangxi Airlines Investment Co., Ltd., which was founded in Feb. 2014 with a registered capital of 400 million yuan, mainly focuses on financial investment of civil aviation industry, aircraft leasing, real estate, etc.

The CAAC has begun soliciting submissions on Jiangxi Airlines and said that the approval would be granted unless it was informed of reasonable grounds to reconsider the plan before March 13, 2015.

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