Okay Airways, China's first privately owned airline, has secured CNY2.1 billion (USD310 million) from its parent Huatian Investment, after the latter changed its majority shareholder.
Yuanfu Changshuo Equity Investment Partnership and Qianhai Qiushi Investment Holding poured over CNY3 billion into Huatian Investment, and CNY2.1 billion of the sum went to Okay Airways, company insiders told Yicai Global. Yuanfu has a 90 percent stake in Huatian and Qianhai has 10 percent. Qiushi Asset Management, a subsidiary of Qianhai, used to be the majority shareholder of the airline.
Founded in 2005, Okay Airways operates more than 100 domestic and international routes with 30 aircraft. The airline transports more than 6 million passengers annually.
Small and medium-sized airlines have struggled to make money in recent years due to insufficient resources, limited scale, and high operational pressure, analyst Lin Zhijie told Yicai Global. Mergers and acquisitions, as well as restructuring measures, are inevitable once the sector enters a downturn with high oil prices, weak exchange rates and sluggish demand, Lin added.
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