China Southern Airlines to establish Xiongan Airlines subsidiary

2 July, 2018

China Southern Airlines announced (30-Jun-2018) plans to invest CNY2.5 billion (USD376.8 million) in cash and another CNY7.5 billion (USD1.1 billion) in assets to establish Xiongan Airlines in Xiongan New Area, becoming the first of China's 'big three' airlines to establish a subsidiary in the new economic zone. The subsidiary airline, which is part of China Southern's dual hub strategy, will operate domestic and international passenger services, cargo transportation, provide aircraft maintenance and sales services. China Southern said that the new airline is not expected to commence operations within the year so will not affect its 2018 financial results. The Chinese government announced in Jan-2017 it plans to establish Xiongan New Area, a new city in Hebei Province about 100km southwest of Beijing. Xiongan is the third "new area of national significance" to be established, following the Shenzhen Special Economic Zone and Shanghai Pudong New Area. The government's plan is to use the new city to better coordinate the development of Beijing, Tianjin, and Hebei, and to be a new home for government agencies and businesses that can be relocated from Beijing. [more - original PR - Chinese]