Stake in Shenzhen Airlines for public auction

Airline Industry Information, April 27, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

State-owned Guangdong Holding Group, the major shareholder of Chinese regional carrier Shenzhen Airlines will put up 65% of the carrier for bidding in a public auction.

The auction is to be held on 23 May, the Shenzhen Enterprise Ownership Exchange Center said on its web site.

Five companies, including Beijing-based Air China, which holds a 25% equity interest in Shenzhen Airlines, have expressed interest in the carrier, reported Xinhua. According to another Chinese media report, quoted by Reuters, other potential bidders include Hong Kong's main carrier, Cathay Pacific Airways, and Chinese freight forwarder Sinotrans.

Shenzhen Airlines flies to 48 destinations in China and in 2003 it carried 3.5 million passengers and 52,207 tonnes of cargo. In 2004 it made a after-tax profit of over CNY200m, an official from Shenzhen Airlines said.

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