China Southern Airlines said on January 9 that it will pursue mixed-ownership reform to bring in outside capital and expand its business by increasing investment in new emerging sectors, Carnoc.com reported.
At its annual conference, China Southern said it will focus on investment from Internet companies and arrange share swaps or form joint ventures with industry leaders in its mixed ownership reform.
The airline will also accelerate efforts to integrate its businesses and market-oriented operations through mergers and restructurings, according to the report.
The airline reported that its revenue grew 3.2% YoY to RMB 115.75 billion yuan in 2016, while its fleet expanded to more than 700 aircraft. Cargo and passenger volumes rose 8.9% and 4.8%, respectively, according to civil aviation industry news portal carnoc.com.
China Southern's mixed-ownership reform is part of China's reform agenda of State-owned enterprises (SOEs) to improve efficiency.
China set mixed-ownership reforms for SOEs in seven sectors. The sectors include electricity, oil and civil aviation as its top priority in 2017, a statement from the State Council, China's cabinet, said on December 16.
China Eastern Airlines was the first State-owned airline to announce mixed-ownership reforms last year, according to media reports.
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