China Southern announces $1.46 billion investment in Shenyang hub
30 Oct 2008
China Southern Airlines, Asia's largest carrier by number of passengers carried, said Wednesday it would invest 10 billion yuan ($1.46 billion) to pick up a 40 per cent stake in the Liaoning Airport Group in a bid to establish an aviation hub in the northeast of the country. The balance 60 per cent stake would be retained by the Liaoning provincial government.
China Southern said it would build a new terminal at Shenyang Taoxian airport, the largest airline hub in northeast China, where it plans to base 100 planes by 2010. It also said it plans to launch between five to eight new international routes over the next five years.
According to industry experts, China Southern's move is intended to further consolidate the airlines leading position in northeast China from where its subsidiary, the China Northern Airlines, operates.
China Northern had merged with China Southern in 2003.
"Northeast China is of strategic importance to us," said a spokesman for China Southern. "We already have Guangzhou and Wuhan as the southern and central hubs. Now Shenyang will become our new hub for Northeast Asia and enhance our competitiveness internationally."
