Hainan Airlines wins SAIC approval for Chengdu LCC

Hainan Airlines has moved one step closer toward LCC Shen Niao Airlines after securing approval from China’s State Administration for Industry & Commerce (SAIC). According to Hainan Airlines, the Chengdu-based LCC venture has a registered capital of CNY3b (US$435m). Its Kunming-based subsidiary Lucky Air will hold a 35% stake with a CNY1.05b investment, Yunnan Lucky Investment Co. will own a 45% stake with a CNY1.35b, and Chengdu Communications Investment Group will hold the remaining 20% stake with CNY600m. However, local industry analysts said the new entity may face difficulties in receiving approval from CAAC as the Chinese regulator began tightening its grip on approving new entrants last year. Currently, 10 new domestic carriers are awaiting CAAC approval. <br/>