China approves funding for Juneyao Airlines’ fleet expansion

The China Securities Regulatory Commission has approved Juneyao Airlines to receive CNY3.57b (US$543m) for fleet expansion. Out of the total, CNY2.7b would be used to purchase 4 Airbus A320s, 3 spare engines and 2 simulators. Also, CNY500m would be used to pay off bank loans and the remaining CNY165m would be used to launch an online travel agency with a Chinese travel company in which Juneyao would hold a 55% stake. The carrier operates a fleet of 50 A320s, excluding its low-cost subsidiary 9 Air. Juneyao received approval from CAAC to buy 33 more aircraft between 2014 and 2018. It plans to expand its fleet to 90 aircraft in 2019. Local aviation analysts expect Juneyao to benefit from Shanghai Disney Resorts, which is scheduled to open June 16. The carrier estimates it will report a net profit of CNY1.23b, CNY1.6b and 2b for 2015, 2016 and 2017, respectively.<br/>