Hainan Airlines (HU, Haikou) has announced its Lucky Air (China) (8L, Dali City) budget unit will participate in the establishment of Shenniao Airlines (Chengdu), a new Sichuan-based Low Cost Carrier (LCC).
In a Shanghai Stock Exchange filing, the HNA Group subsidiary said Shenniao Airlines' shareholding would be split between Lucky Air (35%), Yunnan Xiangpeng Investment Co. (45%), and the Chengdu Communications Investment Group Co. with 20%. In all, the start-up will have a registered capital of CNY3 billion (USD435 million).
Operationally, Shenniao Airlines will operate both domestically and internationally.
Lucky Air is also parent to another Chinese LCC, West Air (China) (PN, Chongqing) which specialises in domestic operations. As with Lucky Air and West Air, it is presumed Shenniao Airlines will eventually apply for membership of the U-Fly alliance.