China Southern board approves airline takeovers

Airline Industry Information, Nov 15, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

The board of directors at China Southern Airlines has approved the airline's plan to take over China Northern Airlines and Xinjiang Airlines from China Southern Air Holding Co.

China Northern and Xinjiang Airlines already fly under China Southern codes and the takeover will see China Southern's fleet increase from 139 aircraft to 214. The airline will also assume liabilities worth CNY15bn from China Northern and Xinjiang Airlines.

The takeover will be funded by CNY1bn in short-term dollar loans from commercial banks and CNY897m in company cash and will be put to shareholders on 31 December 2004, reports The Associated Press.

((Comments on this story may be sent to aii.feedback@m2.com))